[ET Net News Agency, 14 August 2020] Morgan Stanley lifted its target price for Sun Art
Retail Group (06808) to HK$10.3 from HK$9.5 and maintained its "equal-weight" rating.
The research house said the target price hike factors store expansion via supermarkets
and mini stores. However, Morgan does not expect new stores to contribute meaningfully to
earnings for 2021, as other food retailers' supermarkets and mini stores are mostly loss
making in the first one to two years.
Morgan estimated 3% GSP growth (revenue growth 3-4%) and 11% operating profit growth,
implying 2% GSP growth and 6% operating profit growth for 2H. It increased its earnings
forecast slightly to factor in higher financial supports from the government.
Although Morgan is positive on the company's progress in online initiatives, the
research house said its concern on continued SSSG decline for the offline stores remains.
(KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
06808 SUNART RETAIL
Nominal 
1.410 0.000 (0.000%) Others
14/08/2020 16:00
{I-bank focus}Morgan lifts Sun Art Retail (06808) to HK$10.3
| Remark: | Real time quote last updated: 18/04/2024 08:11 |
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