Sa Sa International Holdings Limited (0178) AI Stock Analysis

• Market Cap: HK$1.83B
• Dividend Yield: 4.75%
• Average Volume (3M): 8.40M
• Price to Earnings (P/E): 19.3
• Beta (1Y): 0.53
• Revenue Growth: -3.18%
• EPS Growth: -36.46%
• Country: HK
• Employees: 2,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.02
• Shares Outstanding: 3,103,189,500
• 10 Day Avg. Volume: 9,307,654
• 30 Day Avg. Volume: 8,400,019
• PEG Ratio: 0.04
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 4.87
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$0.50 ▼(-16.67% 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 primarily through retail sales of beauty and personal care products in its physical stores and online platform. The company has a multi-channel business model, allowing it to reach customers through both brick-and-mortar outlets and e-commerce. Key revenue streams include direct sales from retail operations, wholesale distribution to other retailers and businesses, and potentially income from beauty services offered in-store. Sa Sa also benefits from its partnerships with various international and local brands, allowing it to offer a diverse product range that attracts a wide customer demographic. Additionally, the company may leverage promotional activities and loyalty programs to drive repeat purchases, contributing to its overall earnings.

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 2024	Dec 2023	Dec 2021	Dec 2021
Income Statement
Total Revenue	4.01B	4.37B	3.94B	3.50B	3.04B	3.41B
Gross Profit	1.16B	1.78B	1.57B	1.06B	536.71M	904.48M
EBITDA	544.33M	670.79M	519.23M	343.84M	130.09M	31.02M
Net Income	94.72M	218.88M	76.97M	58.25M	-351.37M	-343.73M
Balance Sheet
Total Assets	2.32B	2.50B	2.33B	2.21B	2.51B	2.09B
Cash, Cash Equivalents and Short-Term Investments	251.12M	457.76M	371.10M	303.26M	526.40M	296.72M
Total Debt	588.01M	692.15M	658.84M	595.60M	684.49M	573.99M
Total Liabilities	1.16B	1.25B	1.17B	1.17B	1.18B	1.10B
Stockholders Equity	1.16B	1.25B	1.16B	1.04B	1.33B	982.91M
Cash Flow
Free Cash Flow	235.62M	521.91M	447.06M	431.68M	505.41M	66.72M
Operating Cash Flow	281.87M	590.54M	506.38M	491.08M	553.43M	126.63M
Investing Cash Flow	-14.14M	-68.41M	-117.77M	-59.16M	13.31M	-39.13M
Financing Cash Flow	-343.50M	-361.41M	-547.12M	-418.80M	-627.44M	-296.83M

Sa Sa International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.6 is above the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.60, and above the 200-day MA of 0.59, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	77 Outperform	HK$1.75B	9.58	27.30%	4.07%	23.59%	―
8473	63 Neutral	HK$129.92M	50.43	2.17%	52.54%	-11.32%	-74.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2209	61 Neutral	HK$1.65B	9.39	41.54%	1.89%	55.02%	25.22%
0178	56 Neutral	HK$1.83B	19.34	8.44%	4.75%	-3.18%	-36.46%
9991	44 Neutral	HK$1.38B	-6.04	-5.29%	―	5.91%	9.24%
0493	39 Underperform	HK$605.91M	-0.07	―	―	49.53%	22.07%

Sa Sa International Holdings Limited Corporate Events

Sa Sa Sets Final Deadline for Unclaimed 2019 Dividend

Sa Sa International Holdings has announced that, under its articles of association, any dividends that remain unclaimed for six years after declaration will be forfeited and revert to the company. The board has specified that the final dividend declared on 20 June 2019 and paid on 22 October 2019, amounting to 9.0 Hong Kong cents per share, will be forfeited if still unclaimed as of 29 January 2026. Shareholders entitled to but yet to receive or cash these dividend payments have been urged to contact the company’s Hong Kong branch share registrar, Tricor Investor Services Limited, before the deadline. The move underscores the company’s standard dividend administration practices and serves as a final reminder to shareholders to safeguard their entitlements before the funds are absorbed back into corporate reserves.

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 Reports Strong Interim Results with Significant Profit Growth

Sa Sa International Holdings Limited reported a 6.6% increase in turnover to HK$1,990.6 million and a 54.8% rise in profit to HK$50.2 million for the six months ended September 2025. This growth was driven by increased tourist arrivals in Hong Kong and Macau, effective marketing strategies, and a successful turnaround in the Chinese Mainland market. Despite a slight decrease in gross profit margin due to adjustments in sales strategy and product mix, the company declared an interim dividend of 1.15 HK cents per share, reflecting a positive outlook and commitment to a sustainable dividend policy.

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 Declares Interim Dividend for 2025

Sa Sa International Holdings Limited has announced an interim dividend of HKD 0.0115 per share for the six months ending September 30, 2025, with payment scheduled for December 19, 2025. This announcement reflects the company’s ongoing commitment to returning value to shareholders and may influence investor sentiment positively, reinforcing its market position within the beauty and cosmetics sector.

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 Announces Upcoming Board Meeting for Interim Results

Sa Sa International Holdings Limited has announced a board meeting scheduled for November 20, 2025. The meeting will discuss the approval of the interim results for the six months ending September 30, 2025, and consider the declaration of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

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 Projects Significant Profit Growth for 2025

Sa Sa International Holdings Limited has issued a positive profit alert, expecting a significant year-on-year increase in profits for the six months ending September 2025. This growth is driven by increased tourist arrivals and transactions in Hong Kong and Macau, alongside strategic shifts such as closing physical stores in Mainland China to focus on online business, enhancing overall 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 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.