UBS: Optimistic about SUNART RETAIL's (06808) transformation plan, maintains target price of 2.4 Hong Kong dollars.

UBS released a research report stating that it is optimistic about SUNART RETAIL's (06808) transformation plan, but due to intense competition in the delivery platform market and the transformation and upgrade of offline food retail stores, the bank remains cautious about the short-term prospects. The bank maintains the stock's target price at 2.4 Hong Kong dollars and rates it as a "buy". The bank believes that by reducing the number of SKUs and the size of stores, and accelerating the launch of new products, the product strength of Sun Art has the potential to improve. The management's goal is to increase the sales percentage of own-brand products from the current 3% to 10% within three years, and to reach 20% in the long term.