[ET Net News Agency, 22 November 2019] Nomura lowered its target price for Sa Sa
International (00178) to HK$1.4 from HK$1.5 and maintained its "reduce" rating.
The research house said Sa Sa's 1HFY20 revenue declined by 15.7% due to the weak SSSG of
HK & Macau business at -22%. The company recorded a net loss of HK$36.5mn in 1H versus a
profit of HK$202.9mn last year.
Nomura expects GPM to improve sequentially in 2H versus 1H given the normalisation of
inventory clearance and increasing sales mix of house brand. It cut its FY2020/21 earnings
forecasts by 155%/9% to reflect lower sales but better cost structure. (KL)