(P1) Sa Sa International Holdings (00178.HK) surged after Jefferies upgraded the stock to Buy and raised its price target by 70 percent, citing an improved sales outlook.
(P2) "Sa Sa has seen accelerated sales growth since the fourth quarter of fiscal year 2026, mainly benefiting from a favourable macro environment," Jefferies said in its research report. The firm noted that a stronger renminbi and robust visitor arrivals to Hong Kong were key drivers.
(P3) The brokerage lifted its price target on the cosmetics retailer to HKD 1.14 from HKD 0.67. Jefferies also raised its net profit forecasts for the company for fiscal years 2026, 2027, and 2028 by 46 percent, 92 percent, and 103 percent, respectively.
(P4) Jefferies expects Sa Sa’s sales momentum to generate significant operating leverage and drive earnings growth into fiscal 2028. The new price target implies a projected price-to-earnings ratio of approximately 13 times for fiscal 2027.
A successful product strategy has lifted conversion rates, transaction volume, and average selling prices, according to the report. The positive outlook from a major brokerage could serve as a strong catalyst for the stock, which has attracted renewed investor interest.
This article is for informational purposes only and does not constitute investment advice.
