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Sa Sa International Holdings Limited (HK:0178)
:0178
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Sa Sa International Holdings Limited (0178) AI Stock Analysis

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HK:0178

Sa Sa International Holdings Limited

(0178)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
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 (0178) vs. iShares MSCI Hong Kong ETF (EWH)

Sa Sa International Holdings Limited Business Overview & Revenue Model

Company DescriptionSa 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 MoneySa 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
55
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.14B3.94B4.37B3.50B3.41B3.04B
Gross Profit1.66B1.57B1.78B1.06B904.48M536.71M
EBITDA256.61M519.23M670.79M343.84M31.02M130.09M
Net Income148.87M76.97M218.88M58.25M-343.73M-351.37M
Balance Sheet
Total Assets2.34B2.33B2.50B2.21B2.09B2.51B
Cash, Cash Equivalents and Short-Term Investments355.01M371.10M457.76M303.26M296.72M526.40M
Total Debt687.57M658.84M692.15M595.60M573.99M649.12M
Total Liabilities1.20B1.17B1.25B1.17B1.10B1.18B
Stockholders Equity1.15B1.16B1.25B1.04B982.91M1.33B
Cash Flow
Free Cash Flow656.37M447.06M521.91M431.68M66.72M505.41M
Operating Cash Flow725.03M506.38M590.54M491.08M126.63M553.43M
Investing Cash Flow-61.64M-117.77M-68.41M-59.16M-39.13M13.31M
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 Price0.62
Price Trends
50DMA
0.63
Negative
100DMA
0.60
Positive
200DMA
0.61
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
48.07
Neutral
STOCH
38.89
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HK$1.85B10.1027.30%3.14%23.59%
HK$133.28M26.444.12%25.93%-20.22%-66.17%
$18.38B12.79-2.54%3.03%1.52%-15.83%
HK$2.09B11.9141.54%1.50%55.02%25.22%
HK$1.92B25.006.39%3.95%-9.75%-64.87%
HK$1.61B-7.97-4.71%7.51%30.41%
HK$838.95M49.53%22.07%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0178
Sa Sa International Holdings Limited
0.62
-0.02
-3.13%
HK:0493
GOME Retail Holdings
0.02
-0.01
-35.71%
HK:2209
YesAsia Holdings Limited
5.01
0.11
2.18%
HK:9991
Baozun, Inc. Class A
9.21
1.16
14.41%
HK:2420
Zibuyu Group Limited
3.82
-0.16
-4.02%
HK:8473
Mi Ming Mart Holdings Limited
0.12
0.07
140.00%

Sa Sa International Holdings Limited Corporate Events

Sa Sa International Grants Share Options to Directors and Employees
Oct 8, 2025

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
Oct 6, 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
Aug 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 29, 2025