Shengfeng partners with CATL to boost clean energy logistics

Published 22/04/2025, 14:10
Shengfeng partners with CATL to boost clean energy logistics

FUZHOU, China - Shengfeng Development Limited (NASDAQ: SFWL), a prominent logistics solutions provider in China currently trading at $0.94 and showing signs of being undervalued according to InvestingPro analysis, has announced a strategic partnership valued at approximately 300 million RMB ($42 million USD) with Contemporary Amperex Technology Co., Limited (CATL) (SZSE: 300750), a leader in lithium-ion battery technology. This multi-year collaboration, initiated in March 2025, aims to enhance CATL’s global clean energy supply chain and solidify Shengfeng’s leadership in China’s new energy logistics sector. The deal comes as Shengfeng demonstrates strong revenue growth of 24.75% over the last twelve months, with total revenue reaching $504.16 million. Want deeper insights into SFWL’s valuation metrics and growth potential? InvestingPro subscribers have access to 12 additional exclusive ProTips and comprehensive financial analysis.

The partnership leverages Shengfeng’s expertise in smart logistics infrastructure, particularly its Ningde Shengfeng Smart Logistics Center, which began operations in late 2024. This advanced facility will play a crucial role in managing the transportation and distribution of CATL’s battery components and finished products nationwide, utilizing proprietary technologies to improve supply chain efficiency and reliability.

Yongxu Liu, Chairman and CEO of Shengfeng, emphasized the strategic value of the alliance, stating, "Our alliance with CATL represents a convergence of vision and capability. By integrating our intelligent logistics platform with CATL’s groundbreaking energy technologies, we are redefining sustainable supply chain practices for the new energy era."

The partnership aligns with both companies’ commitments to environmental stewardship by gradually adopting alternative energy vehicles for logistics operations and implementing real-time tracking systems for enhanced supply chain visibility. Additionally, Shengfeng’s data-driven optimization of resources aims to adapt to the dynamic demands of the industry.

With a network spanning hundreds of cities nationwide, Shengfeng’s extensive infrastructure complements CATL’s production and distribution capabilities. This strategic synergy is expected to significantly contribute to Shengfeng’s growth and reinforce its position as a preferred logistics partner in the new energy sector.

Looking ahead, Shengfeng and CATL plan to explore collaborative innovation in next-generation logistics technologies, including smart transportation systems, to further align with the global energy transition’s evolving needs. With an overall Financial Health score of "FAIR" from InvestingPro and projected revenue growth of 13% for FY2025, the company appears positioned for continued expansion. "This Partnership is a platform for our continuous innovation," added Mr. Liu. "Together, we aim to build agile, sustainable supply chains that set new industry benchmarks."

Shengfeng Development Limited, established in 2001, has developed a reliable transportation network in China, covering 382 cities across 32 provinces as of March 31, 2025. The company provides integrated logistics solutions, including B2B freight transportation services, cloud storage services, and value-added services. This information is based on a press release statement.

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