Daiwa issued a research report maintaining its target price of HK$20 for SF INTRA-CITY (09699) and reiterating its "BUY" rating. The firm has raised its earnings per share forecasts for SF INTRA-CITY for 2025-2027 by 6-7%, reflecting a revenue outlook that exceeds expectations.

Daiwa sees positive multi-year revenue growth prospects ahead. Over the next 3-5 years, management expects revenue to more than double starting from 2025. The firm notes that the business growth outlook is based on increasing customer convenience demands, which can be sustained long-term.

The company aims to increase its market share to 50%. Its partnership with Sam's Club enables it to handle 50% of Sam's new warehouse orders, although this contributes only 1% to SF INTRA-CITY's revenue. The company is expected to secure more collaboration orders from existing warehouses in the future.

Additionally, Daiwa believes SF INTRA-CITY will benefit from the increase in e-commerce package volume from its parent company.