Sun Art Retail Group (6808) AI Stock Analysis

• Market Cap: HK$16.89B
• Dividend Yield: 24%
• Average Volume (3M): 12.89M
• Price to Earnings (P/E): 213.1
• Beta (1Y): 0.95
• 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: -0.34
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 4.83
• 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$2.02
• Price Target Upside: 12.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$2.00 ▲(11.73% Upside)

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

Strong Balance Sheet

A strong balance sheet with a healthy debt-to-equity ratio and solid equity base enhances financial stability and supports long-term growth.

Stable Gross Profit Margin

Consistent gross profit margins indicate effective cost management, which is crucial for maintaining profitability in a competitive market.

Effective Free Cash Flow Conversion

The ability to convert net income into free cash flow effectively supports reinvestment and shareholder returns, ensuring financial flexibility.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates challenges in converting revenue into profit, which can impact long-term profitability and competitiveness.

Decline in Free Cash Flow Growth

Declining free cash flow growth suggests potential cash management issues, which could limit the company's ability to invest and grow.

Challenges in Profitability

Ongoing profitability challenges may hinder the company's ability to sustain growth and compete effectively in the long term.

Sun Art Retail Group Business Overview & Revenue Model

Company Description

Sun Art Retail Group (6808) is a leading retail company in China, primarily focused on hypermarket operations. It operates under well-known brands such as Auchan and RT-Mart, offering a wide range of products including groceries, consumer electronics, clothing, and household goods. The company is dedicated to providing a comprehensive shopping experience, leveraging modern retail formats and innovative technologies to enhance customer engagement and operational efficiency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.97B	71.55B	72.57B	83.66B	88.13B	99.69B
Gross Profit	15.50B	17.24B	17.96B	20.58B	21.47B	25.09B
EBITDA	3.80B	4.51B	2.39B	4.80B	3.51B	7.14B
Net Income	65.43M	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	933.91M	3.54B	907.00M	4.28B	3.56B	9.62B
Operating Cash Flow	1.22B	3.55B	926.00M	4.30B	3.58B	9.62B
Investing Cash Flow	2.03B	-4.91B	-52.00M	-1.20B	3.30B	-11.07B
Financing Cash Flow	-2.43B	-3.75B	-1.36B	-1.99B	-3.68B	-2.68B

Sun Art Retail Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.79
• 50DMA: Positive
• 100DMA: Negative
• 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 1.79 is above the 20-day moving average (MA) of 1.74, above the 50-day MA of 1.75, and below the 200-day MA of 1.86, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.16 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 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%
6808	55 Neutral	HK$16.89B	213.10	0.37%	24.00%	-6.17%	―
0825	50 Neutral	HK$488.98M	18.67	0.76%	―	-12.99%	89.87%
0984	46 Neutral	€102.70M	-0.26	―	―	-3.03%	-36.45%
0162	43 Neutral	HK$48.29M	-0.08	-110.16%	―	-17.63%	-13.10%
0980	40 Neutral	HK$503.06M	-1.28	-404.43%	―	-12.42%	62.88%
0602	39 Underperform	HK$51.88M	-1.53	―	―	-13.59%	76.48%

Sun Art Retail Group Corporate Events

Sun Art Retail Gains Shareholder Approval for Employee Benefit Amendments

Sun Art Retail Group Limited announced the results of its Extraordinary General Meeting (EGM) held on December 4, 2025, where a significant majority of shareholders approved amendments to the company’s employee trust benefit schemes. These changes, affecting the Auchan and RT-Mart schemes, were supported by over 96% of the votes, indicating strong shareholder backing for the company’s strategic direction in enhancing employee benefits.

Sun Art Retail Group Announces New Board Structure

Sun Art Retail Group Limited has announced changes to its board of directors, effective from December 1, 2025. The board will include a mix of executive, non-executive, and independent non-executive directors, with Li Weiping serving as the CEO and Julian Juul Wolhardt as the Chairman. The board has also established three committees: Audit, Nomination, and Remuneration, each with designated members, which indicates a structured approach to governance and oversight.

Sun Art Retail Group Announces Leadership Changes

Sun Art Retail Group Limited announced significant leadership changes effective December 1, 2025, with the resignation of Mr. Shen Hui as executive director and CEO, and the appointment of Ms. Li Weiping to these roles. Ms. Li brings over 20 years of retail management experience, having previously held senior positions at Freshippo and Lotte Supermarket. Her appointment is expected to continue the company’s strategic focus on expanding its Superstore model and enhancing its market competitiveness.

Sun Art Retail Group to Revise Employee Benefit Schemes

Sun Art Retail Group Limited has announced an extraordinary general meeting to discuss and approve proposed amendments to its employee trust benefit schemes. The amendments aim to update the Auchan and RT-Mart schemes, potentially impacting the company’s operational strategies and aligning its employee benefits with current market standards. This move could enhance Sun Art’s competitive positioning in the retail sector and influence stakeholder engagement.

Sun Art Retail Group Reports Interim Loss Amid Revenue Decline

Sun Art Retail Group Limited announced its unaudited consolidated interim results for the six months ending September 30, 2025, revealing a 12.1% decrease in revenue compared to the previous year. The company reported a net loss of RMB 127 million, a significant decline from the profit of RMB 186 million in the same period in 2024, indicating challenges in its operational performance and market conditions.

Sun Art Retail Group Declares Interim Dividend for 2025

Sun Art Retail Group Limited has announced an interim dividend of HKD 0.085 per share for the six months ending 30 September 2025. The dividend will be paid on 24 March 2026, with shareholders having the option to receive the dividend in alternative currencies, including RMB and USD, with specific exchange rates to be announced. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

Sun Art Retail Group Announces Change in Company Secretary

Sun Art Retail Group Limited has announced a change in its company secretary and authorized representative. Ms. HO Hang Yu Helen has resigned from her position, and Ms. WANG Ruoyu has been appointed in her place, effective October 27, 2025. Ms. WANG brings a wealth of experience in compliance and company secretarial work, having previously worked at a financial institution and a company listed on the Stock Exchange. This transition is expected to maintain the company’s compliance and governance standards.

Sun Art Retail Group Issues Profit Warning Amid Market Challenges

Sun Art Retail Group Limited has issued a profit warning, anticipating a net loss of approximately RMB110 million to RMB140 million for the six months ended September 2025, compared to a net profit of RMB186 million in the previous year. The loss is attributed to intensified market competition, weak consumption, and several one-off factors affecting profit, despite cost reduction efforts. The company’s online B2C business showed low single-digit growth, and it continues to advance its three-year strategic plan, focusing on product competitiveness and store transformation. Sun Art remains optimistic about maintaining sufficient liquidity and may consider an interim dividend, although no decision has been made yet.

Sun Art Retail Group Schedules Board Meeting for Interim Results

Sun Art Retail Group Limited announced that its Board of Directors will meet on November 11, 2025, to review and approve the interim financial results for the six months ending September 30, 2025. The meeting will also consider the recommendation for an interim dividend, impacting the company’s financial strategy and potentially affecting shareholder returns.

Sun Art Retail Group Announces Amendments to Employee Trust Schemes

Sun Art Retail Group Limited has announced proposed amendments to its Employee Trust Benefit Schemes, specifically the Auchan Scheme and the RT-Mart Scheme. The company has decided to cease granting further Trust Units in these schemes as part of a strategic transformation to adopt more flexible and effective incentive mechanisms. This move aims to support the rapid implementation of the company’s business strategy objectives. The amendments include new arrangements for the redemption of Trust Units and optimize the scheme rules for the remaining term. The changes reflect a shift in the company’s approach to employee incentives, potentially impacting the retention and motivation of its workforce.