[ET Net News Agency, 8 May 2020] Macquarie Research raised its target price for Sun Art
Retail (06808) to HK$17.8 from HK$13.4 and maintained its "outperform" rating.
The research house said Sun Art's online growth driver is further firming up, which the
market will re-rate the company for. Macquarie raised its 2020 SSSg from 4% previously to
6.5% due to fast online order growth.
Meanwhile, Sun Art maintained strong SSSg momentum in April given that offline SSSg
turns positive. The solid trend is healthy, given the CPI contribution is 1% only. On the
other hand, Sun Art received certain rental savings from their landlords and government
subsidies during COVID-19, all of which can mitigate the impact of slow offline traffic.
(KL)