Sun Art Retail Group (6808) AI Stock Analysis

• Market Cap: HK$16.12B
• Dividend Yield: 23.73%
• Average Volume (3M): 12.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -6.17%
• EPS Growth: N/A
• Country: HK
• Employees: 85,778
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -0.01
• Shares Outstanding: 9,540,505,000
• 10 Day Avg. Volume: 11,858,871
• 30 Day Avg. Volume: 12,886,039
• PEG Ratio: <0.01
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 16.22
• 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$1.80
• Price Target Upside: 5.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): HK$63.41B

• Rating: 55 Neutral
• Price Target: HK$1.50 ▼(-11.76% Downside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

Sun Art Retail Group's overall stock score is primarily influenced by its stable financial performance and high dividend yield, which are offset by challenges in profitability and valuation concerns. Technical indicators suggest limited momentum, contributing to a cautious outlook.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio (0.36) and a 35.9% equity ratio provide durable financial flexibility. This capital structure reduces refinancing risk, supports investment in store maintenance or expansion, and improves resilience to retail cyclicality, aiding long-term operational stability.

Margin Stability & Revenue Recovery

A stable gross margin near 24% plus a return to modest revenue growth (3.1%) indicate effective procurement and cost control in core FMCG categories. These trends support steady topline fundamentals and create a base for gradual operating-margin improvement over the coming months.

Business Model & Market Position

A large brick-and-mortar hypermarket model selling everyday goods creates recurring foot traffic and stable demand. Diversified in-store revenue streams (promotions, tenant leases) and O2O fulfillment potential provide structural advantages that sustain cash flow and supplier relationships over time.

Negative Factors

Low Net Profitability

A net margin of just 0.57% reflects the thin profitability typical of big-box retail but also signals limited ability to absorb cost inflation or invest without eroding returns. Sustaining dividends or funding growth initiatives will be harder unless operating leverage or pricing improves.

Weak Operating Cash Generation

Very low operating-cash-to-net-income (0.12) and declining free cash flow growth point to working-capital strain or accrual-based earnings. Poor cash conversion limits the company’s ability to fund capex, service working capital needs, or reliably sustain high dividend payouts long term.

Low Return on Equity

An ROE of ~2.02% is modest and suggests the business earns limited returns on shareholders’ capital. Over months, low ROE constrains reinvestment economics and reduces the margin for error versus competitors, pressuring long-term shareholder value creation unless operational efficiency rises.

Sun Art Retail Group Business Overview & Revenue Model

Company Description

Sun Art Retail Group Limited, an investment holding company, operates brick-and-mortar stores and online sales channels in the People's Republic of China. It operates hypermarkets, superstores, and mini stores under RT-Mart, RT-Super, and RT-Mini names. As of March 31, 2022, it had a total of 490 hypermarkets, nine superstores, and 103 mini stores. The company also provides consulting, investment, wholesaling, and retailing services. Sun Art Retail Group Limited was founded in 1998 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

Sun Art Retail Group generates revenue primarily through the sales of goods in its hypermarket stores. Its key revenue streams include in-store sales of food products, non-food items, and private label products. The company also benefits from ancillary services such as online sales through its e-commerce platforms, which have gained traction in recent years. Significant partnerships with suppliers and brands allow for competitive pricing and exclusive product offerings, contributing to its earnings. Additionally, the company invests in digital transformation initiatives, enhancing its logistics and inventory management systems to optimize costs and improve customer satisfaction.

Sun Art Retail Group Financial Statement Overview

Summary

Sun Art Retail Group demonstrates stable revenue growth and effective cost management, but profitability remains a challenge with low net profit margins. The balance sheet is strong with a balanced leverage approach and solid equity base. Cash flow management shows areas for improvement, particularly in generating operating cash flow.

Income Statement

Sun Art Retail Group's income statement shows a modest revenue growth rate of 3.1% in the latest year, recovering from a decline in previous years. The gross profit margin remains stable at around 24%, indicating consistent cost management. However, the net profit margin is low at 0.57%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved but remain relatively low, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet indicates a healthy debt-to-equity ratio of 0.36, showing a balanced approach to leverage. The return on equity has improved to 2.02%, though still modest, suggesting limited profitability relative to equity. The equity ratio stands at 35.9%, indicating a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, indicating potential cash management issues. The operating cash flow to net income ratio is low at 0.12, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is nearly 1, indicating that the company is effectively converting its net income into free cash flow.

Breakdown	TTM	Mar 2025	Mar 2023	Mar 2023	Mar 2022	Dec 2020
Income Statement
Total Revenue	67.15B	71.55B	72.57B	83.66B	88.13B	99.69B
Gross Profit	14.92B	17.24B	17.96B	20.58B	21.47B	25.09B
EBITDA	3.64B	4.51B	2.39B	4.80B	3.51B	7.14B
Net Income	77.00M	405.00M	-1.60B	109.00M	-826.00M	2.86B
Balance Sheet
Total Assets	53.63B	55.97B	60.72B	64.12B	65.75B	69.23B
Cash, Cash Equivalents and Short-Term Investments	20.18B	13.22B	16.42B	19.18B	18.66B	20.12B
Total Debt	7.20B	7.32B	8.38B	7.71B	7.38B	8.05B
Total Liabilities	38.69B	35.55B	38.92B	39.92B	40.68B	41.37B
Stockholders Equity	18.25B	20.09B	21.40B	23.52B	23.96B	26.22B
Cash Flow
Free Cash Flow	854.43M	3.54B	907.00M	4.28B	3.56B	9.62B
Operating Cash Flow	1.12B	3.55B	926.00M	4.30B	3.58B	9.62B
Investing Cash Flow	1.86B	-4.91B	-52.00M	-1.20B	3.30B	-11.07B
Financing Cash Flow	-2.22B	-3.75B	-1.36B	-1.99B	-3.68B	-2.68B

Sun Art Retail Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6808, the sentiment is Positive. The current price of 1.7 is above the 20-day moving average (MA) of 1.68, above the 50-day MA of 1.65, and below the 200-day MA of 1.85, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.08 is Neutral, neither overbought nor oversold. The STOCH value of 75.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6808.

Sun Art Retail Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0825	57 Neutral	HK$564.86M	7.56	1.06%	―	-12.99%	89.87%
6808	55 Neutral	HK$16.12B	-33.42	0.37%	23.73%	-6.17%	―
0984	46 Neutral	HK$100.10M	-0.11	60.23%	―	-3.03%	-36.45%
0602	44 Neutral	HK$48.76M	-2.64	―	―	-13.59%	76.48%
0162	42 Neutral	HK$59.78M	-0.10	-141.46%	―	-17.63%	-13.10%
0980	41 Neutral	HK$495.67M	2.59	-404.43%	―	-12.42%	62.88%

Sun Art Retail Group Corporate Events

Sun Art Retail Updates Exchange Rates for Multi-Currency Interim Dividend

Sun Art Retail Group Limited has updated details of its interim dividend for the six months ended 30 September 2025, confirming a payout of HKD 0.085 per share for the financial year ending 31 March 2026. Shareholders may elect to receive the dividend in Hong Kong dollars, renminbi, or U.S. dollars, with the revised exchange rates setting the alternative payments at RMB 0.0741 or USD 0.0108 per share.

The election period for choosing the payout currency closes on 19 December 2025, with an ex-dividend date of 26 November 2025, a record date of 27 November 2025, and payment scheduled for 24 March 2026. The clarification of currency options and exchange rates offers investors greater flexibility in managing currency exposure while underlining the group’s ongoing commitment to returning cash to shareholders through regular interim distributions.

The most recent analyst rating on (HK:6808) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sun Art Retail Group stock, see the HK:6808 Stock Forecast page.

Sun Art Retail Group Says CEO Uncontactable, Chairman Assumes Interim Management

Sun Art Retail Group has disclosed that it is currently unable to contact its chief executive officer and executive director, Li Weiping, who joined the group in December 2025 after holding various roles at Freshippo. The board stated that, to the best of its knowledge, the issue is unrelated to the group’s business and operations and does not have a material adverse impact, with day-to-day management temporarily assumed by chairman Julian Juul Wolhardt while the company continues to operate as normal and monitors developments, advising shareholders and potential investors to exercise caution when dealing in its securities.

The most recent analyst rating on (HK:6808) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sun Art Retail Group stock, see the HK:6808 Stock Forecast page.

Sun Art Retail Refreshes Board With New Non-Executive Director From DCP Capital

Sun Art Retail Group has announced a board reshuffle, with non-executive director Guannan Wang stepping down from the board and the nomination committee effective 6 January 2026 following her redesignation to other business within the controlling shareholder’s group. She is being replaced by Liu Hao, a senior director at DCP Capital with extensive experience in consumer retail and supply chain management, who joins as a non-executive director and nomination committee member for a three-year term; the move reinforces the company’s governance structure and brings additional sector expertise to its board without adding director emoluments for Liu, signaling a focus on aligning oversight with the group’s consumer retail strategy while maintaining cost discipline.

The most recent analyst rating on (HK:6808) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Sun Art Retail Group stock, see the HK:6808 Stock Forecast page.

Sun Art Retail Revamps Board Structure and Committee Roles

Sun Art Retail Group Limited has announced an updated composition of its board of directors effective 6 January 2026, naming Li Weiping as executive director and chief executive officer, Julian Juul Wolhardt as non-executive chairman, two additional non-executive directors, and three independent non-executive directors. The company has also detailed the membership and chairmanship of its three key board committees—audit, nomination and remuneration—assigning leadership roles primarily to its independent non-executive directors, a move that underscores its adherence to corporate governance norms and may strengthen oversight, accountability and investor confidence in the group’s management and board processes.

The most recent analyst rating on (HK:6808) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Sun Art Retail Group stock, see the HK:6808 Stock Forecast page.