Sa Sa (0178.HK): FY26 Earnings Recovery; Strong Momentum in 1QFY27E

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Sa Sa (0178.HK): FY26 Earnings Recovery; Strong Momentum in 1QFY27E

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25 Jun 2026 10:27:48 ET │ 14 pages

Sa Sa (0178.HK)

FY26 Earnings Recovery; Strong Momentum in 1QFY27E

CITI'S TAKE

Sa Sa reported FY26 results with topline/core NP up 14%/55% to

HK$4.38bn/HK$203m excluding offline business in Mainland China, in

line with its positive profit alert. A final dividend of HK$3.4 cents is well

expected on a 70% payout ratio policy while special dividend of HK$1.9 Buy

cents (29% of core NP) is a positive surprise. FY26 marks a year of recovery Short-Term View: Upsidewith accelerating YoY growth in each quarter. Quality growth is evidenced by

decent growth in transaction nos. and average ticket size, as well as healthy Price (25 Jun 26 16:10) HK$0.94

margin, which add conviction that the solid 1QFY27 QTD sales growth of Target price HK$1.20↑

24%, including +33% in HK & Macau offline sales, is more likely to sustain.

Cost ratios are also well maintained, which could translate into meaningful from HK$1.02

net profit growth. There is also upside from unchanged 70% dividend policy, Expected share price return 27.7%

given the aforementioned special dividend and historical records. Maintain Expected dividend yield 6.1%

Buy on undemanding valuation.

Expected total return 33.7%

FY26 results — Group sales grew 14% in FY26 (+21% in 2H vs. +7% in 1H) mainly Market Cap HK$2,917M

driven by strong offline sales in HK & Macau (+16%) underpinned by tourism recovery, US$372M

assortment optimization to cater trendy demands and next-gen customers, and

successful flash promotions/targeted campaigns. Offline sales in SEA was affected

by unfavorable policy in 1H but resumed growth in 2H on assortment/operation

optimization.