[ET Net News Agency, 15 October 2018] Deutsche Bank lowered its target price for Sa Sa
International Holdings (00178) to HK$4.5 from HK$6, and maintained its "buy" rating.
The research house lowered its net profit forecasts for FY2018/19/20 by 8/18/21% to
reflect lower HK sales growth to 12/7/8% from 15/13/12% for period to reflect weaker
domestic consumption and lower tourist spending in FY2020, assuming lower tourist spending
from mainland due to China market slowdown (likely lower ASP).
For 1H FY2019, DB expects the company to report an 82% rise in net profit to HK$200m on
16% rise in sales to HK$4.1bn. GPM is likely to decline by over 2ppt, but due to operating
leverage and absence of one-off restructuring cost this year. (KL)