Sa Sa International Holdings Limited (0178) AI Stock Analysis

• Market Cap: HK$1.92B
• Dividend Yield: 4.84%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.68
• Revenue Growth: 1.20%
• EPS Growth: -49.31%
• Country: HK
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): 0.05
• Shares Outstanding: 3,103,189,500
• 10 Day Avg. Volume: 1,565,614
• 30 Day Avg. Volume: 1,553,587
• PEG Ratio: -0.84
• Price to Book (P/B): 5.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.22
• 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$0.87
• Price Target Upside: 40.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ―

Sa Sa International Holdings Limited shows a promising financial recovery and solid valuation metrics, with robust revenue growth and strong dividend yield. However, technical indicators point to caution due to bearish trends. Despite these challenges, the company's financial health and attractive valuation contribute to an overall positive outlook.

Positive Factors

Profitability

Plans to refine product-mix by capturing more private-label sales, along with improved inventory management, could enhance profitability and efficiency.

Sales Growth

Sa Sa hopes to return to positive sales growth during the Christmas and New Year holidays, supported by improving sales volume and average ticket size.

Sales Momentum

The resumption of multi-entry visas for Shenzhen residents to Hong Kong is expected to boost visitor numbers and benefit Sa Sa's sales momentum.

Negative Factors

Competition

Intensifying competition and a weaker operating landscape could slow progress for Sa Sa.

Operating Challenges

A weaker operating landscape and slower-than-expected progress in non-core markets pose challenges for Sa Sa.

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 Holdings Limited generates revenue primarily through the sale of beauty and personal care products. The company operates a chain of retail stores in high-traffic areas as well as an online platform, enhancing its reach to a broader customer base. Revenue streams include direct sales from these retail outlets and online sales, allowing for a diversified income source. The company also benefits from strategic partnerships and collaborations with international beauty brands, which enable it to offer exclusive products and promotions, further driving sales. Additionally, Sa Sa engages in marketing and loyalty programs to retain customers and encourage repeat purchases, contributing to its overall earnings.

Sa Sa International Holdings Limited Financial Statement Overview

Summary

Sa Sa International Holdings Limited demonstrates a strong financial recovery with significant revenue growth, improved margins, and strong cash flow management. The company maintains a stable financial position despite moderate leverage.

Income Statement

Sa Sa International Holdings Limited has shown a strong recovery in its income statement metrics. The company achieved a significant revenue growth rate of 24.79% from the previous year, along with an impressive improvement in EBIT and net income, turning from losses to positive figures. The gross profit margin stands at 40.83%, and the net profit margin is 5.01%, indicating a healthy profitability trend. However, the EBIT margin at 6.53% shows room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial structure with a debt-to-equity ratio of 0.55, indicating moderate leverage. The return on equity is at 17.48%, showing strong profitability relative to shareholders' equity. The equity ratio is 50.01%, reflecting a balanced capital structure with substantial equity backing. These metrics suggest a solid financial position but highlight potential risks associated with maintaining leverage.

Cash Flow

Cash flow analysis shows a robust performance with a notable free cash flow growth rate of 20.91% over the last year. The operating cash flow to net income ratio is 2.70, indicating strong cash conversion from profits. Furthermore, the free cash flow to net income ratio is 2.38, suggesting efficient capital management. These figures underscore the company's capacity to generate and manage cash effectively, enhancing financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.14B	4.37B	3.50B	3.41B	3.04B	5.72B
	Gross Profit
1.66B	1.78B	1.06B	904.48M	536.71M	1.22B
	EBIT
200.91M	285.13M	-83.08M	-347.17M	-569.44M	-367.67M
	EBITDA
256.61M	670.79M	343.84M	31.02M	130.09M	330.14M
	Net Income Common Stockholders
148.87M	218.88M	58.25M	-343.73M	-351.37M	-515.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
355.01M	457.76M	303.26M	296.72M	526.40M	641.50M
	Total Assets
2.34B	2.50B	2.21B	2.09B	2.51B	3.27B
	Total Debt
687.57M	692.15M	595.60M	573.99M	649.12M	1.08B
	Net Debt
349.67M	234.39M	292.35M	277.52M	143.72M	519.69M
	Total Liabilities
1.20B	1.25B	1.17B	1.10B	1.18B	1.60B
	Stockholders Equity
1.15B	1.25B	1.04B	982.91M	1.33B	1.66B
Cash Flow		Free Cash Flow
656.37M	521.91M	431.68M	66.72M	505.41M	547.84M
	Operating Cash Flow
725.03M	590.54M	491.08M	126.63M	553.43M	665.12M
	Investing Cash Flow
-61.64M	-68.41M	-59.16M	-39.13M	13.31M	390.44M
	Financing Cash Flow
-531.50M	-361.41M	-418.80M	-296.83M	-627.44M	-1.04B

Sa Sa International Holdings Limited Technical Analysis

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

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 0.62, above the 50-day MA of 0.61, and below the 200-day MA of 0.66, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, 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
0178	72 Outperform	HK$1.92B	12.92	13.05%	4.84%	1.20%	-49.31%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
CJEWF		$15.62B	20.92	22.73%	4.02%	―	―
EVGRF		$234.84M	―		―	―	―
0592		$352.21M	―	-76.22%	―	―	―
0331	78 Outperform	HK$2.54B	5.31	49.10%	3.73%	3.11%	-2.34%

Sa Sa International Holdings Limited Corporate Events

Sa Sa International Issues Profit Warning Amid Market Challenges

Sa Sa International Holdings Limited has issued a profit warning, projecting a significant decline in profits for the year ending March 2025 compared to the previous year. This decline is attributed to a 10%-11% drop in turnover, primarily due to changing travel habits and a strong US dollar affecting tourist spending in Hong Kong and Macau. The company plans to close 18 physical stores in Mainland China to focus on online operations, aiming for an asset-light model to enhance efficiency. Despite these challenges, the company expects an increase in profit after tax in the second half of the financial year, excluding one-time store closure provisions.

Sa Sa International Announces Key Management Change

Sa Sa International Holdings Limited announced a change in its company secretary and authorized representative, effective April 25, 2025. Ms. Mak Sum Wun Simmy has resigned, and Mr. Chung Ming Kit, who has extensive experience in finance and accounting, will take over the role. This change is part of the company’s ongoing efforts to strengthen its management team, with Mr. Chung’s background expected to contribute positively to the company’s financial and operational strategies.

Sa Sa International Reports 7.2% Decline in Q4 Turnover Amid Strategic Realignments

Sa Sa International Holdings Limited reported a 7.2% year-on-year decline in turnover for the fourth quarter ending March 31, 2025, totaling HK$966.1 million. The decline was attributed to strategic realignments and economic challenges, particularly in Mainland China, where the company plans to close 18 stores and shift to an asset-light model. Despite the downturn, offline sales in Hong Kong and Macau showed improvement due to recovering tourist arrivals, while Southeast Asia experienced growth in online sales. The company aims to optimize its product portfolio and expand its store network in response to favorable tourism policies.