Citibank: Downgrades Sa Sa International (00178.HK) target price to 1 Hong Kong Dollar, maintains "buy" rating.

According to the Wisdom Financial APP, Citibank released a research report stating that SaSa International (00178.HK) revenue and core profit for the end of March this year to the 2025 fiscal year decreased by 10% and 51% respectively, in line with the previously announced profit warning. However, the group declared a final dividend of 1.7 Hong Kong cents, as expected, and plans to maintain a stable dividend payout ratio of 70% in the future. Citibank mentioned that although the outlook for SaSa's recovery is weak, sales trends may be reaching a turning point, with visitor numbers and customer preferences on the rise. The bank lowered its net profit forecast for the group in fiscal years 2026 and 2027 by 23% and 17% respectively, to reflect lower revenue and profit margin forecasts. Considering the valuation is not high, Citibank maintains a "buy" rating for the group but has reduced the target price from 1.18 Hong Kong dollars to 1 Hong Kong dollar.