Sa Sa's sales have recovered to 49% of FY19 level, slower than expected but still improving. Stronger Rmb, more attractions in Hong Kong, and new stores will drive growth. The stock is undervalued.
Boomeranged on Thu, 22 Feb 2024 09:48
With more cities in mainland China to be opened for individual travels to Hong Kong and the relaxation of the travel permits of mainland visitors, Sa Sa is expected to benefit from the increase in mainland tourist inflow. This is supportive of its earnings recovery as the company is taking action to expand its network. Sa Sa has reacted positively today with a 10% surge in share price so far.
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