FY2027 Outlook: Continuing Implementation of Its Three-Year Strategic Roadmap

研报英文原文证据摘录

FY2027 Outlook: Continuing Implementation of Its Three-Year Strategic Roadmap

China (PRC) | China Consumer

Sun Art Retail Group EquityMayResearch19, 2026

TARGET | ESTIMATE CHANGEFY2027 Outlook: Continuing Implementation

RATING HOLDof Its Three-Year Strategic Roadmap

PRICE HK$1.49^

Sun Art's FY26 result was in line with its profit alert announcement. FY27 is

the second year of its 3-year plan, and mgmt targets to improve adj EBITDA PRICE TARGET | % TO PT HK$1.55 (HK$1.90) | +4%

and improve SSS and sales trend. Thus, the company should achieve break- 52W HIGH-LOW HK$2.77 - HK$1.37

even or have a slight profit for FY27. Our new PT is HK$1.55 from HK$1.9 FLOAT (%) | ADV MM (USD) 20.8% | 0.95

on earnings revisions. Maintain Hold as current share price is supported MARKET CAP HK$14.2B | $1.8B

by its book value (1x) and dividend yield (11%). Key catalyst is on SSS TICKER 6808 HK ^Prior trading day's closing price unless otherwise

improvement. noted.

Results in line with profit alert announcement. Sun Art reported NL of RMB319m for FY26, on FY (Mar) CHANGE TO JEFe JEF vs CONS

11% decline in sales to RMB63bn. This is in line with the NL's RMB300-350m range announced 2027 2028 2027 2028

in its profit alert on 17 Apr. SSS was down 11% due to fewer items per basket, while traffic REV -6% -7% -6% -7%

remained stable.

EPS -100% -83% -100% -83%

FY27 is the second year of its 3-year plan. Mgmt targets to improve adj EBITDA from FY26's

RMB3.2bn, as restructuring continues. NP is expected to break even or turn a profit. SSS trend 2027 (RMB) 1Half 2Half FY

is targeted to improve, with a steady sales trend. For May, mgmt saw SSS at M-HSD decline, EPS -- -- 0.00

narrowing from previously -DD. Traffic was flat overall. Key focus will be on: 1) better product; PREV 0.08