Sasa(178.HK) Hong Kong’s political situation affecting the market sentiment. Rent costs to be expected being further controlled. July 8, 2019

PSR Recommendation: ACCUMULATE Status: Maintained
Target Price: HKDHKD2.50

Investment Summary
Sasa’s FY2018 full-year revenue increased by 4.5% y.o.y., but fell by 5% in 2H of the year.
The Hong Kong and Macau market fell by 5.8%, while same-store sales fell by 7.3%,
compared with 18.5% in 1H. According to the management team, in the first month of
FY2019 (April), the Hong Kong and Macao market continued to have a significant decline in
revenue. In May, the decline was less than 4%. During June 1st to 8th before the mass
demonstration, the decline was over 3% which was similar to May. During the large-scale
demonstrations and conflicts from June 9 to 16, the number of mainland tourists dropped
significantly, and the decline in revenue expanded to nearly 20%.

About the author

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Tracy Ku
Investment Analyst

Graduated from Chinese University of Hong Kong, majoring in Economics for Bachelor Degree, and Journalism for Master Degree. Worked in financial news industry for more than four years.
Currently cover retailing, property sectors and IPOs. Good at analysis for the companies with economic policies and industry prospects.

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