HK Stock Market Move | SA SA INT'L (00178) rose over 4% in late trading; Jefferies says profit alert brings surprise, company expected to benefit from improved retail in Hong Kong during holidays.

SA SA INT'L (00178) rose over 4% in late trading. As of press time, it was up 4.39% at HK$1.19, with a turnover of HK$5.2102 million. On the news front, SA SA INT'L previously issued a profit alert, expecting profit for the six months ended September to exceed HK$150 million, compared with HK$50.2 million in the same period last year. This was mainly due to strong same-store sales in Hong Kong and Macau, as well as rapid growth in the company's B2BC online sales and profitability. Jefferies believes the profit alert brought a surprise to the market, as it was announced earlier than expected, demonstrating the company's sustained net profit recovery momentum. The bank also said that the Mid-Autumn Festival and National Day long holiday drove demand for dining out and travel. Hong Kong retail is expected to benefit from improved monetization of inbound visitors, with mainland tourist spending conversion remaining high, outbound consumption outflow stabilizing, and a relatively strong RMB enhancing purchasing power; within its coverage, SA SA INT'L benefits the most.