HK Stock Market Move | SUNART RETAIL(06808) rose nearly 6% with the accelerated opening of Sun-Art Superstores. The increase in same-store sales and potential acquisitions are the main catalysts.

SUNART RETAIL (06808) rose nearly 6%, up 5.91% as of press time, reporting HK$2.51, with a turnover of HK$239.817 million. On the news front, it was reported that on December 25th, the Darunfa Super store at Bozhou Jinqiao and Taihe Hanlin Square stores officially opened offline. Following that, the Haikou Haixiu Zhonglu store will also make its debut on January 4th. It is understood that Darunfa Super has opened three stores in Anhui and Hainan, bringing the total number to 34 stores covering 11 provinces and cities across the country. Prior to this, SUNART RETAIL announced that the board of directors approved the declaration and payment of an interim dividend of HK$0.170 per ordinary share for the six months ending September 30, 2024, totaling approximately HK$1.622 billion. The dividend will be paid on January 24 of next year to shareholders listed on the register at the close of business on December 27 at 4:30 pm. SUNART RETAIL previously stated that it has received a letter of intent from potential bidders regarding the acquisition of all of the company's shares, and discussions between Alibaba and the prospective bidders are still ongoing. A research report from DBS Bank pointed out that as China's largest integrated supermarket operator, SUNART RETAIL positions its supermarkets as community centers to meet consumer needs. The bank believes that SUNART RETAIL has improved its profit margins through optimizing its product mix and effective cost control. The bank maintains a "buy" rating on SUNART RETAIL and raises its target price from HK$2.6 to HK$3.1, citing the recovery in same-store sales and potential acquisitions as the main catalysts.