(Yicai Global) April 12 -- SF Holdings’ stock jumped after China’s largest express courier said it turned a profit of as much as CNY1.1 billion (USD170 million) in the first three months of the year, reversing a year-earlier loss.

SF’s shares [SHE: 002352] finished 5.7 percent higher in Shenzhen today at CNY52.30 (USD8.21) each, the highest closing price in a month.

Net profit was likely between CNY950 million and CNY1.1 billion (USD149.1 million and USD170 million) in the quarter ended March 31, versus a net loss of CNY989 million a year ago, the Shenzhen-based company said yesterday.

The express delivery giant said business was volatile last month as a number of Chinese cities tightened Covid-19 restrictions. It attributed the profit to narrower losses at new businesses and the addition of Kerry Logistics Network to consolidated revenue from the fourth quarter of 2021.

Revenue rose nearly 29 percent to CNY18.9 billion (USD3 billion) in March from a year earlier, but income from SF’s express service and business volume fell 5.9 percent and 7.9 percent to CNY12.5 billion and 803 million orders, respectively, amid the resurgence of Covid.

SF’s supply chain and international business income soared 361 percent to CNY6.4 billion last month from a year ago, mainly due to revenue at Kerry Logistics.

SF said it continued to focus on its core logistics strategy in the first quarter, adjusted its product structure, cut the volume of low-margin products, controlled costs, improved resource efficiency with technology, and strengthened the synergy of resources across business segments during the Chinese lunar new year.

Editor: Futura Costaglione