[ET Net News Agency, 3 July 2018] BofA Merrill Lynch raised its target price for Sun
Art Retail Group (06808) to HK$11.05 from HK$9.85, and retained its "buy" rating.
The research house sees significant strategic value in Sun Art's tie-up with BABA, in
internet leaders'offline land grab. Among China's top 5 hypermarkets, 4 have chosen to be
on Tencent's (00700) side, while Sun Art is the largest and the only one on BABA's camp.
BofAML has seen strong resource commitment and endorsement from BABA, to establish Sun
Art as a successful New Retail template for the industry and enable share gains, versus
the relatively slow progress on the other camp.
In addition, BofAML expects SSSG to turn positive from 2H 2018, the first milestone in
the tie-up with BABA. It also believes the shareholder mix shift to Southbound / TMT
investors could also offer support to valuation.
It slightly trimmed its 2018/19 EPS forecasts, but lifted its FCF estimates by 16%/20%
on lower than expected CAPEX & higher sales estimates. (KL)
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06808 SUNART RETAIL
Nominal 
1.530 +0.060 (+4.082%) Others
03/07/2018 16:03
[I-bank focus]BofAML ups Sun Art Retail (06808) to HK$11.05
| Remark: | Real time quote last updated: 23/04/2024 17:59 |
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