[ET Net News Agency, 13 November 2019] Jefferies Research initiated coverage on Sun Art
Retail (06808) with a "buy" rating and a target price of HK$11.
The research house expects Sun Art's partnership with Internet giant Alibaba to have a
material impact on its online business, with online sales more than doubling to over 30%
of total sales in 2021.
Under the partnership, Sun Art's retail infrastructure will function as an arterial
network for Alibaba's online food retail platforms, in addition to serving both on/offline
customers. Jefferies expects Sun Art to report 2019-2021 CAGR of 9% in net profit and 3%
in sales. It believes Sun Art is Alibaba's most fruitful offline partner in Fresh Food
Retail. (KL)