[ET Net News Agency, 10 August 2018] HSBC Global Research lowered its target price for
Sun Art Retail Group (06808) to HK$10.3 from HK$11, and maintained its "hold" rating.
The research house agrees that O2O is a necessary step to stem the drop in sales and
revive growth in its stores, especially at the roll-out stage. However, it does not
necessarily translate into sustainable growth in sales and profits going forward.
As the O2O contribution to its digitalised stores rises to 11% and 15% in 2018 and 2019,
HSBC expects growth in top line sales to come back at 5% and 7% in 2H 2018 and 2019, but
moderate to 5% in 2020 as the benefit from roll-out diminishes.
It estimated an O2O loss of RMB265m/429m/197m in 2018/19/20 based on the unit loss of
RMB3/2/1 per order in 2018/19/20. HSBC estimated profit to grow again by 5% in 2020 after
a drop of 3% in 2019. (KL)
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06808 SUNART RETAIL
Nominal 
1.460 +0.050 (+3.546%) Others
10/08/2018 14:37
[I-bank focus]HSBC lowers Sun Art Retail (06808) to HK$10.3
| Remark: | Real time quote last updated: 18/04/2024 17:59 |
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