[ET Net News Agency, 12 August 2019] Citi Research raised its target price for Sun Art
Retail Group (06808) to HK$10.8 from HK$9.2 and maintained its "buy" rating.
The research house said Sun Art's 8% growth in 1H core net profit (excluding gains of
unutilized prepaid cards) beat Citi's expectation by 9%, given earlier-than-expected
operating breakeven of Taoxianda (TXD), stronger-than-anticipated rental income (up 9%) &
better-than-anticipated B2B sales growth (up 50%+).
Encouraged by "having found the right business model for New Retail (after years of
error-trials)", management is even more confident in the "New Retail Harvest Year" in 2020
after "accelerating growth of New Retail" in 2019. (KL)