Sun Art Retail 6808

Sun Art Retail 6808

Postby winston » Wed Jul 27, 2011 10:28 am

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UPDATE 1-China's Sun Art shares surge 37 pct on debut after $1.1 bln IPO

* Sun Art surges in a flat broader market
* Best first-day pop among $500 mln-plus Hong Kong IPO in 2011 By Denny Thomas and Donny Kwok

HONG KONG, July 27 (Reuters) - China's top hypermarket operator Sun Art Retail Group Ltd <6808.HK> jumped 37 percent on its stock trading debut on Wednesday following a $1.1 billion Hong Kong IPO as investors bet on strong growth in the mainland's consumer demand.

Sun Art -- a joint venture between Taiwan conglomerate Ruentex Group and privately held French retailer Groupe Auchan SA [AUCH.UL] -- sold shares at the top of the marketing range in early July, defying a slump in the world's biggest IPO market.

The shares jumped to HK$9.89 each versus the IPO price of HK$7.20, while the benchmark Hong Kong share index <.HSI> was down 0.1 percent.

Sun Art's strong start makes it the best trading debut this year for a Hong Kong IPO raising more than $500 million. The first-day pop is in sharp contrast to some of Hong Kong's other mega deals, including Samsonite International SA <1910.HK>, which slumped 7.7 percent, and Italian fashion house Prada SpA <1913.HK>, which made a flat debut.

"The stock is overpriced but you have no choice but to pay a high premium if you buy pure China growth story (on grocery market segment)," said Alex Wong, a director at Ample Finance Group.

"The stock can jump further as investors are seen excited by its growth story," he added.

The stock was quoted up 18 percent in gray market trade on Tuesday, according to Phillip Securities.

The company had delayed its debut by nearly two weeks due to discrepancy in the IPO prospectus relating to historical earnings per share figures.

Sun Art, which has 51 hypermarkets under construction across China and secured 121 locations for future openings, plans to use 50 percent of the IPO proceeds to open new stores in China, while 30 percent will be set aside to pay down debt.

The remainder of the funds will be used to upgrade and remodel existing hypermarkets, set up new distribution centers and for working capital.

Sun Art is the top hypermarket operator by sales in China, with a 12 percent market share, it said in the prospectus, citing estimates from Euromonitor.

Wal-Mart Stores ranked second, with 11.2 percent, followed by China Resources Enterprise <0291.HK>, with 9.8 percent, and Carrefour , with 8.1 percent.

The IPO drew massive interest from Hong Kong investors betting on surging consumer demand in China.

The deal was only the second $1 billion-plus Hong Kong IPO this year to price at the top of expectations, after casino operator MGM China Holdings Ltd <2282.HK> in May.

UBS AG , Citigroup Inc and HSBC Holdings Plc <0005.HK> acted as joint global co-ordinators for the deal, with BNP Paribas SA , China International Capital Corp, Goldman Sachs Group Inc and Morgan Stanley also helping underwrite the offering as joint bookrunners.

Sun Art also sold $420 million in shares to investors, including sovereign wealth fund Government of Singapore Investment Corp [GIC.UL] and Malaysian state investor Khazanah [KHAZA.UL].

The IPO price valued Sun Art at 31.5 times 2011 earnings and 24.1 times 2012 earnings, according to the consensus estimate of banks underwriting the deal. Rival China Resources Enterprise trades at a P/E of 32.4 times for 2011 and 26.4 times for 2012.

Source: Reuters
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Re: Sun Art Retail Gp 6808

Postby winston » Tue Sep 06, 2011 1:35 pm

DJ MARKET TALK: GS Ups Sun Art To Buy; Better Margin Outlook

1306 [Dow Jones] STOCK CALL: Goldman Sachs upgrades Sun Art Retail (6808.HK) to Buy from Neutral as it turns more positive about its margin outlook; it raises Sun Art's target price to HK$11.80 vs HK$10.80, after raising its recurring FY11-13 EPS forecasts by 9%-10% to factor in a stronger gross profit margin trend.

GS says while the hypermarket operator' P/E looks high on near-term earnings, it believes the stock is pricing in just flat operating profit margin (at about 4.5%) in the next 10 years, whereas developed markets' experience shows that leaders ultimately can command operating profit margin of about 6%."

"Better appreciation of this structural upside in margins, combined with food retail's defensive nature, can drive the stock's outperformance." Sun Art is off 3.1% at HK$9.42 at midday.

Source: Dow Jones Newswire
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Re: Sun Art Retail Gp 6808

Postby winston » Thu Oct 13, 2011 6:49 am

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One new stock poised for further rebound is Sunart Retail (6808).

Since listing in July, it has been Hong Kong's best performing new stock. In terms of sales, the company is the largest hypermart operator in China with a rapidly rising market share.

Its 196 outlets - spread nationwide - run under the Auchan and RT-Mart brands.

Sunart listed at HK$7.2 and is now trading at HK$9.02. Goldman Sachs has put a target of HK$11.8 on the stock.

Source: Dr. Check, The Standard HK
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Re: Sun Art Retail 6808

Postby winston » Wed Nov 16, 2011 6:48 am

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Sun Art Retail Group (6808), the largest and fastest growing hypermarket operator in China in terms of sales and market share.

It has a footprint of 196 hypermarkets in 21 provinces, autonomous regions and municipalities.

HSBC said Sun Art's same-store sales grew 9.5 percent in the third quarter. This is 2.4 percent higher than rivals.

The bank forecasts whole-year income will grow by 22.4 percent, and has set a target price of HK$11.50.

At one point yesterday, Sun Art shares hit at an all-time high of HK$11.22, before closing at HK$11.06, down 1 percent.

Since the beginning of October, they have rebounded 43 percent from a low of HK$7.80.

Avoid buying now, as the company is trading at 49 times historical earnings.

Source: Dr. Check, The Standard HK
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Re: Sun Art Retail 6808

Postby winston » Mon Mar 05, 2012 6:45 am

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Sun Art beats forecast as 46 outlets open
Monday, March 05, 2012

Leading hypermarket operator Sun Art Retail Group (6808) booked earnings of 1.6 billion yuan (HK$1.97 billion), or 20 fen per share last year, 13 percent above the forecast in the listing document.

The firm raised HK$8.24 billion in an initial public offering in July, when it said net profit would be no less than 1.41 billion yuan, or 15 fen per share for the year ending December 31.

But it ended the year with a profit jump of 55.2 percent. At the end of the year, it operated 230 hypermarkets in the mainland under the brands Auchan and RT Mart.

The gross profit margin was up 0.9 percent to 20.4 percent, but the operating margin dipped 0.1 percent to 4.3 percent mainly as a result of 46 new outlets that opened last year.

Strong domestic consumption helped lift revenue as sales of goods rose by 21.1 percent to 66.5 billion yuan, or 97.7 percent of turnover.

Operating costs rose 30.6 percent to 9.5 billion yuan due to higher wages and store network expansion costs.

But the company is not slowing the pace of expansion. Construction of stores is under way at 80 of 153 sites it has secured. A final dividend of 10 HK cents was recommended for the year.

Sun Art shares rose 2.9 percent to HK$10.64 on Friday, up 47.8 percent from the offer price of HK$7.20.

http://www.thestandard.com.hk/news_deta ... 20305&fc=1
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Re: Sun Art Retail 6808

Postby winston » Thu May 17, 2012 2:30 pm

China's top hypermarket operator Sun Art Retail Group Ltd aims to open 50 new stores this year, with about 40 to be opened in the second half, said Chief Executive Bruno Mercier.


Source: WEN WEI PO
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Re: Sun Art Retail 6808

Postby winston » Tue Jul 17, 2012 11:55 am

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SUNART RETAIL (06808) maintained EW with TP cut to HK$9.4 by MS

Deceleration in same-store-sales growth and rise in operating costs constitute pressure to the 2012 operating profit margin of SUNART RETAIL (06808), said Morgan Stanley, who however believes SUNART RETAIL can protect its pre-tax profit margin better than its peers can.

The broker lowered its 2012 and 2013 earnings forecasts for SUNART RETAIL by 6% and 8% respectively to HK$0.24 and HK$0.3.

SUNART RETAIL was maintained Equal-weight with target price cut to HK$9.4 from HK$9.65.

Source: AAStocks Financial News
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Re: Sun Art Retail 6808

Postby winston » Tue Aug 28, 2012 9:27 am

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China's biggest hypermarket chain, Sun Art Retail Group Ltd, said on Tuesday its first-half net profit rose 75 percent, beating forecasts and signalling the company's resilience to an economic slowdown thanks to cost controls and its expanded retail network.


Source: Reuters
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Re: Sun Art Retail 6808

Postby winston » Wed Jan 16, 2013 7:49 pm

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SUNART RETAIL (06808.HK) maintained Neutral with TP lifted to $12 - UBS

UBS noted in a report that it expects the same-store-sale of SUNART RETAIL (06808.HK) will rise from low single-digit to middle-to-high single-digit, and the reading will grow 5.5% in 2013.

The broker lifted the 2013/14 forecast of gross profit margin by 0.2 and 0.3 percentage points to 20.6% and 20.7%.

The target price of SUNART RETAIL is raised 18% from $10.2 to $12 by UBS with Neutral rating remained.


Source: AAStocks Financial News
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Re: Sun Art Retail 6808

Postby winston » Wed Apr 23, 2014 8:01 pm

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SUNART RETAIL (06808.HK) target reduced to $12, rated Buy - GS

In the latest research report, Goldman Sachs reiterated the Buy investment rating (target price cut from $13.9 to $12) for SUNART RETAIL (06808.HK) +0.020 (0.201%) Short selling $33.34M; Ratio 49.863% , as the Company has achieved 1% market share when compared to an average of 0.1-0.3% of its peers, becoming the long-term winner in the sizable food, household product and personal care market in China.

The research house believes that Sunart has a wide market ahead, with advantage of scale, and it gave the best performance in terms of earnings in the retailer watchlist.


Source: AAStocks Financial News
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