Sa Sa International Holdings Limited (0178) AI Stock Analysis

• Market Cap: HK$1.92B
• Dividend Yield: 3.95%
• Average Volume (3M): 8.40M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.56
• Revenue Growth: -9.75%
• EPS Growth: -64.87%
• Country: HK
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.01
• Shares Outstanding: 3,103,189,500
• 10 Day Avg. Volume: 9,307,654
• 30 Day Avg. Volume: 8,400,019
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$0.50 ▼(-19.35% Downside)

The overall stock score is primarily influenced by the company's financial performance challenges, including declining revenue growth and profitability. Technical analysis indicates weak momentum, while the valuation suggests potential overvaluation, though the dividend yield offers some compensation. The absence of earnings call and corporate events data means these factors do not impact the score.

Positive Factors

Offline Sales Growth

The increase in offline sales, driven by recovering tourist arrivals, highlights Sa Sa's ability to capitalize on market recovery and enhance its retail footprint, supporting long-term revenue growth.

Management Confidence

Management's increased shareholding demonstrates strong confidence in the company's strategic direction, potentially boosting investor trust and aligning management interests with shareholders.

Asset-Light Model

The asset-light approach in Mainland China allows Sa Sa to optimize operational efficiency and reduce capital expenditure, supporting sustainable long-term growth and profitability.

Negative Factors

Revenue Decline

The decline in revenue growth indicates challenges in maintaining sales momentum, which could affect long-term financial stability and necessitates strategic adjustments to boost sales.

Profitability Challenges

The reduced net profit margin reflects operational inefficiencies and pressures on profitability, highlighting the need for cost management and efficiency improvements to sustain long-term financial health.

Store Closures in China

Closing stores in Mainland China could limit market presence and revenue potential, impacting long-term growth prospects unless offset by strategic initiatives elsewhere.

Sa Sa International Holdings Limited Business Overview & Revenue Model

Company Description

Sa Sa International Holdings Limited, an investment holding company, engages in the retail and wholesale of cosmetic products in Hong Kong and Macau, Mainland China, and Malaysia. The company offers approximately 600 brands of skincare, fragrance, make-up, body care, hair care, and health and fitness products, as well as beauty gadgets. It is also involved in intellectual property rights and property holding; and charitable activities. As of March 31, 2022, the company operated 234 retail stores. In addition, it sells its products through e-commerce platforms, including sasa.com, mobile app, social commerce, and third-party platforms. The company was founded in 1978 and is headquartered in Chai Wan, Hong Kong.

How the Company Makes Money

Sa Sa International generates revenue through multiple streams, primarily from its retail sales in physical stores and online platforms. The company sells a variety of beauty and personal care products from both international and local brands, which contributes significantly to its income. Additionally, Sa Sa engages in wholesale distribution, supplying products to other retailers, which serves as another important revenue stream. The company also benefits from strategic partnerships with various beauty brands, enhancing its product offerings and brand presence. Seasonal promotions, loyalty programs, and marketing initiatives further drive sales, contributing to overall profitability.

Sa Sa International Holdings Limited Financial Statement Overview

Summary

Sa Sa International Holdings Limited faces challenges in revenue growth and profitability, as reflected in declining margins and reduced net income. The balance sheet remains stable with moderate leverage, but profitability metrics have weakened. Cash flow management shows strong cash conversion but declining free cash flow growth. Overall, the company needs to focus on improving sales, operational efficiency, and cash flow management to enhance financial performance.

Income Statement

Sa Sa International Holdings Limited has shown a decline in revenue growth rate by -4.87% in the latest period, indicating challenges in maintaining sales momentum. The gross profit margin is moderate at 39.85%, but the net profit margin has decreased to 1.95%, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting operational inefficiencies. Overall, the income statement reflects a need for improved revenue generation and cost management.

Balance Sheet

The company's debt-to-equity ratio is 0.57, indicating a balanced approach to leveraging, though slightly increased from the previous year. Return on equity has decreased to 6.65%, showing a decline in profitability from shareholders' perspective. The equity ratio stands at 49.77%, suggesting a stable capital structure. The balance sheet is relatively stable but shows room for improvement in profitability.

Cash Flow

Free cash flow has decreased by 31.89%, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.66, suggesting adequate cash generation relative to net income. However, the free cash flow to net income ratio is high at 0.88, reflecting strong cash conversion. The cash flow statement highlights the need for better cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.14B	3.94B	4.37B	3.50B	3.41B	3.04B
Gross Profit	1.66B	1.57B	1.78B	1.06B	904.48M	536.71M
EBITDA	256.61M	519.23M	670.79M	343.84M	31.02M	130.09M
Net Income	148.87M	76.97M	218.88M	58.25M	-343.73M	-351.37M
Balance Sheet
Total Assets	2.34B	2.33B	2.50B	2.21B	2.09B	2.51B
Cash, Cash Equivalents and Short-Term Investments	355.01M	371.10M	457.76M	303.26M	296.72M	526.40M
Total Debt	687.57M	658.84M	692.15M	595.60M	573.99M	649.12M
Total Liabilities	1.20B	1.17B	1.25B	1.17B	1.10B	1.18B
Stockholders Equity	1.15B	1.16B	1.25B	1.04B	982.91M	1.33B
Cash Flow
Free Cash Flow	656.37M	447.06M	521.91M	431.68M	66.72M	505.41M
Operating Cash Flow	725.03M	506.38M	590.54M	491.08M	126.63M	553.43M
Investing Cash Flow	-61.64M	-117.77M	-68.41M	-59.16M	-39.13M	13.31M
Financing Cash Flow	-531.50M	-547.12M	-361.41M	-418.80M	-296.83M	-627.44M

Sa Sa International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0178, the sentiment is Positive. The current price of 0.62 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.63, and above the 200-day MA of 0.61, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0178.

Sa Sa International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2420	―	HK$1.85B	10.10	27.30%	3.14%	23.59%	―
8473	―	HK$133.28M	26.44	4.12%	25.93%	-20.22%	-66.17%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2209	―	HK$2.09B	11.91	41.54%	1.50%	55.02%	25.22%
0178	―	HK$1.92B	25.00	6.39%	3.95%	-9.75%	-64.87%
9991	―	HK$1.61B	-7.97	-4.71%	―	7.51%	30.41%
0493	―	HK$838.95M	―	―	―	49.53%	22.07%

Sa Sa International Holdings Limited Corporate Events

Sa Sa International Grants Share Options to Directors and Employees

Sa Sa International Holdings Limited has announced the grant of share options to certain directors and employees, allowing them to subscribe to a total of 30,490,000 new ordinary shares. The options, part of the 2022 Share Options Scheme, are set at an exercise price of HK$0.65 per share and have a validity of 10 years, with vesting periods spread over four tranches. This initiative is aimed at incentivizing performance and aligning the interests of the employees with the company’s long-term goals.

The most recent analyst rating on (HK:0178) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Sa Sa International Holdings Limited stock, see the HK:0178 Stock Forecast page.

Sa Sa International Sees 8.4% Turnover Growth in Q2 2025

Sa Sa International Holdings Limited reported an 8.4% year-on-year increase in turnover for the second quarter ending September 2025, reaching HK$1,030.8 million. Offline sales, accounting for 80.2% of total turnover, grew by 9.4%, driven by increased tourist arrivals and improved consumer sentiment in Hong Kong and Macau. Despite challenging weather conditions, the region’s sales rose by 10.2%. Online sales also saw a 4.9% increase, with significant contributions from live-streaming and social media marketing. The company plans to expand its store network in response to macroeconomic uncertainties and tourism growth, while enhancing its online presence in Mainland China to maintain profitability.

The most recent analyst rating on (HK:0178) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Sa Sa International Holdings Limited stock, see the HK:0178 Stock Forecast page.

Sa Sa International Secures Shareholder Approval for AGM Resolutions

Sa Sa International Holdings Limited announced that all resolutions proposed at its Annual General Meeting, including the re-election of directors and mandates to issue and buy back shares, were approved by shareholders. This approval reflects strong shareholder support and may enhance the company’s governance and operational flexibility, potentially impacting its market positioning positively.

The most recent analyst rating on (HK:0178) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Sa Sa International Holdings Limited stock, see the HK:0178 Stock Forecast page.