Sa Sa International Holdings Limited (0178) AI Stock Analysis

• Market Cap: HK$1.92B
• Dividend Yield: 3.95%
• Average Volume (3M): 6.13M
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.61
• 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: 5,792,673
• 30 Day Avg. Volume: 6,125,449
• 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: HK$0.50
• Price Target Upside: -19.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: HK$0.50 ▼(-19.35% Downside)

The overall stock score of 62 reflects the company's financial performance challenges, particularly in revenue growth and profitability. However, the technical analysis indicates mild bullish momentum, and the valuation is supported by a high dividend yield. The absence of recent earnings call data and notable corporate events limits additional insights.

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 is a leading retailer and wholesaler of beauty and personal care products in Asia, primarily operating in Hong Kong and Macau. The company offers a wide range of products including skincare, cosmetics, fragrances, and health supplements, catering to diverse customer preferences. With a strong focus on customer service and product quality, Sa Sa operates a chain of retail stores and an online platform, making it a prominent player in the beauty industry.

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: Neutral
• Last Price: 0.62
• 50DMA: Positive
• 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 Neutral. The current price of 0.62 is below the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.62, and above the 200-day MA of 0.61, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	HK$1.62B	8.84	27.30%	3.72%	23.59%	―
2209	70 Outperform	HK$2.55B	14.55	41.54%	1.23%	55.02%	25.22%
8473	69 Neutral	HK$163.52M	32.44	4.12%	26.03%	-20.22%	-66.17%
0178	62 Neutral	HK$1.92B	25.00	6.39%	3.95%	-9.75%	-64.87%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9991	57 Neutral	HK$1.82B	―	-4.71%	―	7.51%	30.41%
0493	41 Neutral	HK$885.56M	―	―	―	49.53%	22.07%

Sa Sa International Holdings Limited Corporate Events

Sa Sa International Provides Update on Share Option Scheme

Sa Sa International Holdings Limited has issued a supplemental announcement to its annual reports for the fiscal years ending March 2024 and 2025. The announcement provides additional information regarding the company’s 2022 Share Option Scheme, which requires a payment of HK$1.00 upon acceptance of the option offer. This update does not alter any other information in the annual reports, ensuring stakeholders that all other details remain unchanged.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Holdings Announces 2025 Annual General Meeting Agenda

Sa Sa International Holdings Limited has announced its upcoming annual general meeting scheduled for August 21, 2025, in Hong Kong. Key agenda items include the consideration of financial statements, the declaration of a final dividend, re-election of directors, and the re-appointment of auditors. Additionally, the meeting will address granting a general mandate to the directors to allot and deal with additional company shares, which could impact the company’s market operations and shareholder value.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Reports Growth in Offline Sales Amidst Tourist Recovery

Sa Sa International Holdings Limited reported a 4.7% year-on-year increase in turnover for the first quarter ending June 2025, driven by a 7.3% rise in offline sales, particularly in Hong Kong and Macau, due to recovering tourist arrivals. Despite a 4.3% decline in online sales, the company remains optimistic about future growth, focusing on optimizing its product portfolio and expanding its store network in strategic locations, while maintaining an asset-light model in Mainland China to enhance economic efficiency.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Announces HK$20 Million Share Purchase Plan

Sa Sa International Holdings Limited has announced a share purchase plan with an aggregate amount not exceeding HK$20 million, aimed at buying back ordinary shares from the open market and purchasing shares under its share award scheme. The decision comes amid recent volatility in the company’s share price, which the Board believes undervalues the company. The plan is intended to boost investor confidence, enhance shareholder returns, and demonstrate the company’s confidence in its business outlook. The Board assures that the company has sufficient financial resources to implement the plan while maintaining a healthy financial position.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Executives Boost Shareholding, Signal Confidence in Growth Strategy

Sa Sa International Holdings Limited announced that its management, including key executives, has increased their shareholding in the company by acquiring 3,000,000 ordinary shares from the open market. This move demonstrates their confidence in the company’s business prospects and strategic direction. The company plans to expand its offline presence in Hong Kong, Macau, and Southeast Asia, while also enhancing the profitability of its online sales, particularly in Mainland China, where online sales account for a significant portion of its turnover.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Holdings Enhances Governance with Nomination Committee Guidelines

Sa Sa International Holdings Limited has outlined the terms of reference for its Nomination Committee, emphasizing the committee’s composition, meeting procedures, and authority. The committee is tasked with nominating directors and can seek independent advice, ensuring its operations align with legal and regulatory standards, thereby reinforcing governance and strategic oversight within the company.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Reports Decline in Turnover and Store Closures

Sa Sa International Holdings Limited reported a decrease in turnover by 9.7% to HK$3,941.7 million for the year ending March 31, 2025, primarily due to reduced spending by visitors to Hong Kong and Macau and a strong US dollar. The company plans to close its remaining 18 physical stores in Mainland China by June 2025, with nine already closed by May. Despite these challenges, the Board proposed a final dividend of 1.7 HK cents per share, indicating a commitment to maintaining a steady dividend policy.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Declares Final Dividend for FY2025

Sa Sa International Holdings Limited announced a final cash dividend of HKD 0.017 per share for the financial year ending 31 March 2025. The dividend reflects the company’s ongoing commitment to returning value to shareholders, with the payment date set for 10 September 2025. This announcement may impact investor sentiment and market positioning, as it underscores the company’s financial health and strategic focus on shareholder returns.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Announces Board Composition and Roles

Sa Sa International Holdings Limited has announced the composition of its board of directors and the roles they occupy within the company. This announcement outlines the executive and independent non-executive directors, including key figures such as Dr. Kwok Siu Ming Simon as Chairman and CEO, and Dr. Kwok Law Kwai Chun Eleanor as Vice-chairman. The release also details the membership of various board committees, highlighting the company’s governance structure and leadership roles, which are crucial for strategic decision-making and risk management.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Appoints New Executive Director to Strengthen Leadership

Sa Sa International Holdings Limited has appointed Mr. Chung Ming Kit as an executive director, effective June 19, 2025. Mr. Chung, who joined the company as CFO in December 2024, brings over 20 years of finance and management experience and will also serve on the executive and risk management committees. This appointment is part of the company’s strategic efforts to strengthen its leadership team and enhance its operational capabilities.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 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 Schedules Board Meeting for Annual Results and Dividend Decision

Sa Sa International Holdings Limited has announced a board meeting scheduled for June 19, 2025, to approve the annual results for the fiscal year ending March 31, 2025. The meeting will also consider recommending a final dividend payment, reflecting the company’s ongoing financial strategies and potential shareholder returns.

The most recent analyst rating on (HK:0178) stock is a Buy with a HK$0.87 price target. To see the full list of analyst forecasts on Sa Sa International Holdings Limited stock, see the HK:0178 Stock Forecast page.