Sa Sa International 0178

[winston]

Not vested

DJ MARKET TALK: Time To Buy Sa Sa;HK$7.90 Target - UOB KayHian

1115 [Dow Jones] STOCK CALL: "Time to buy" Sa Sa (0178.HK), says UOB KayHian; keeps Buy call with HK$7.90 target (rolls target P/E from FY11 to FY12, HK$7.90 represents 18X FY12 P/E).

Notes HK hit new single-month visitor arrival record in August, which should lift HK retailers. Having delivered 20.2% on-year revenue growth in 1Q11 (April-June), expects Sa Sa to continue robust growth momentum in 2Q; reckons increased sales contribution from in-house brand, exclusive licensed brands so far in FY11 should further fuel earnings growth. Stock +1.4% at HK$6.33.

Source: Dow Jones Newswire

[iam802]

Sa Sa. This is the same chain that sells cosmetic, perfumes etc in Singapore, right?

My gut feel is that the stores in Singapore are not doing that great.

- Not many people in the store.
- Customer service not that great; I got better service (and better price) going to those smaller shops.

What's the advantage of buying from SaSa...if I can get it from their competitors at even lower price (and the stores can be just opposite theirs) ?

[winston]

Not vested. From UOBKH:-

PE 23; EPS growth 25% ?


Valuation/Recommendation

• Re-rating on the cards. We expect all markets and business units to continue to register improvement in 1HFY11. Our FY11 earnings forecast of HK$485m is on track, vs consensus of HK$448m. Dividend yield of 5- 6% looks attractive.

We are rolling our target PE from FY11 to FY12. Our new target price of HK$7.90 represents 18x FY12F PE. We expect further re-rating in the coming few months.

http://research.uobkayhian.com/research ... 705826.pdf

[winston]

Not vested

HK cosmetics distributor Sa Sa says Q3 sales up 17 pct

HONG KONG, Jan 10 (Reuters) - Hong Kong-based cosmetics retailer and wholesaler Sa Sa International Holdings Ltd <0178.HK> said on Monday that turnover in the fiscal third quarter ended December rose 16.8 percent from a year earlier.

In a filing to the Hong Kong stock exchange, Sa Sa said same-store sales for the period grew 6.8 percent and average sales per transaction rose 8.4 percent.

In other markets, including China, Singapore, Malaysia and Taiwan, the company recorded 33.5 percent year-on-year growth in retail and wholesale turnover.

Sa Sa said it added 15 outlets in the quarter, bringing the total to 195 at the end of 2010.

Shares of the company were down 2.1 percent in late trade on Monday.

Source: Reuters

[winston]

Not vested

DJ MARKET TALK: Sa Sa Down 3.5%; HK$4.08-HK$4.67 Eyed M/T -Broker

1227 [Dow Jones] Sa Sa (0178.HK) is down 3.5% at HK$4.39, after its executive director and chief financial officer Look Guy reduced his stake in the company to 1.03% from 1.08% by selling 1.4 million shares on Feb. 2 at an average price of HK$4.516 apiece, according to an exchange filing late Tuesday.

"The news has triggered some profit-taking in the stock, but I think the overall outlook of the consumer sector remains strong, as Sa Sa is one of the mainland visitors' favored stops in Hong Kong," says Alvin Cheung, an associate director at Prudential Brokerage.

The stock rose 82.4% over the past 12 months, compared with the HSI's 20.1% gain in the same period. He expects Sa Sa to trade between its 100-day and 50-day moving average levels of HK$4.08 and HK$4.67 in the medium-term.

Source: Dow Jones Newswire

[Muhajir]

-Not Vested

Sa Sa Int'l (00178) year net up 33% to HK$509m; div 9.5 cts

Sa Sa International (00178) said its net profit rose 33.4% to HK$509.3 million for the year ended 31 March 2011.

Its turnover increased by 19.2% from HK$4,111.3 million to HK$4,901.4 million.

The group's gross profit margin increased from 44.1% to 45.1%. Net margin increased from 9.3% to 10.4%, a rise of 1.1%.

The board recommended a final dividend of 2.5 HK cents per share and a special dividend of 7 HK cents per share, payable on 29 August.

Source: ETNet.

[winston]

Not vested. With the reduction in taxes in China, the HK retailers would probably be hit ...

Cosmetic products retailer Sa Sa International Holdings Ltd announced that its group turnover increased 34.6 percent year on year for the first quarter ended in June, with same store sales growth at 26.3 percent.

Source: HONG KONG ECONOMIC JOURNAL

[winston]

not vested

DJ MARKET TALK: Citi Starts Sa Sa At Buy, HK$6.02 Target

1126 [Dow Jones] STOCK CALL: Citigroup starts Sa Sa (0178.HK) at Buy with a target price of HK$6.02.

"Sa Sa offers unrivalled exposure to the fast-growing cosmetic retail market in China, as well as a strong core operation in Hong Kong that is adopting a new strategy to drive customer traffic and operating leverage."

Citi forecasts Sa Sa to deliver an EPS CAGR of 26.2% over FY11-FY14, backed by a sales CAGR of 24.1% and a strong balance sheet that will support a high dividend payout (implied yields of 3%-5%).

Citi says Sa Sa's share-price correction reflects blip in China business, but it believes that the execution hiccup is temporary and that the company is on track to gain market share in the mainland.

Sa Sa is down 2.0% at HK$4.51.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Sa Sa May Not React Much To In-Line 1H Results

1316 [Dow Jones] Sa Sa's (0178.HK) 1H results are mostly in line with expectations, and given the lack of re-rating catalysts such as a turnaround of its China operations, the stock may not react much in the afternoon;

The company reports 1H net profit rose 27% on-year to HK$224 million, representing 35% of full-year earnings now pegged by Thomson Reuters consensus, which is normal as the earnings for the cosmetics retailer is typically much higher in the 2H than the 1H: the 1H:2H spilt last FY was 35%/65%.

Sa Sa declares a special dividend of 4 HK cents/share on top of an interim dividend of 2 HK cents.

Its mainland China business posts strong revenue growth of 81% to HK$108.5 million, but still a fraction (less than 4%) of group revenue;

It says its strategy and operations there "are undergoing growing pains, which are only to be expected in a new market." Sa Sa is up 0.6% at HK$4.97 at midday.

Source: Dow Jones Newswire

[winston]

not vested

China hit fails to take shine off Sa Sa results
by Kapila Bandara and Grace Cao

Friday, November 18, 2011

Cosmetics retailer Sa Sa International Holdings (0178), a favorite shopping destination for thousands of mainland visitors, reported earnings of HK$224.3 million for the six months ended September 30, up 27.3 percent compared with the same period last year.

But it took a hit from mainland operations, booking a HK$19.7 million loss, which chairman and chief executive Simon Kwok Siu-ming said was mainly attributable to overheads associated with 13 new stores as it sought to expand its mainland footprint.

But Kwok said yesterday the firm's expansion will continue, with 15 stores in the mainland set to open.

He said Sa Sa has a presence in "eight provinces and 14 cities with 39 stores." Last month, Sa Sa opened a flagship store in Henderson Mall in Shanghai.

In Hong Kong, Kwok said Sa Sa had to bear rental rises of "26 percent in the first half," when leases were renewed.

Sales increased to HK$2.78 billion, up 32.7 percent compared with last year.

Sales and profit growth were driven by "a strong performance" in the Hong Kong and Macau markets, as well as by the introduction of new and exclusive products, Kwok said.

Turnover in Hong Kong and Macau increased 35.3 percent to HK$2.2 billion.

Sales in the mainland increased more than 80 percent to HK$108.5 million.

Sa Sa operates a total of 84 stores in Hong Kong, Macau and the mainland, selling brand name fragrances such as Christian Dior and Lalique; make-up from Bobbi Brown and Clinique; skincare from Guerlain and Suisse Programme, as well as bodycare, haircare and slimming products.

In August, the company was included in the Hang Seng Corporate Sustainability Benchmark Index. Basic earnings per share was 8 HK cents.

The company declared an interim dividend of six HK cents per share.

http://www.thestandard.com.hk/news_deta ... 11118&fc=8