Jefferies: Maintaining Salsa International's (00178) “Buy” Rating Target Price of HK$1.4, sales for the second quarter rose 37% year-on-year to beat expectations

The Zhitong Finance App learned that Jefferies released a research report stating that it maintains the “buy” rating of Sa Sa Sa International (00178), with a target price of HK$1.4. The company's sales for the second quarter of fiscal year 2027 (ending September quarter) increased 37% year over year to HK$1.4 billion, 13% higher than the bank's forecast. Sales momentum accelerated, mainly driven by a 52% year-on-year increase in offline sales in Hong Kong and Macau to HK$1.1 billion.

The bank pointed out that the company's same-store sales increased by 46.9% and added 5 new stores, bringing the total number of Hong Kong stores to 92. During National Day Golden Week from October 1 to 7, offline sales in Hong Kong and Macau increased by more than 60% year on year, and same-store sales increased by more than 50%; the number of transactions, average sales per transaction, and number of transactions all recorded significant year-on-year increases.

Jefferies said that the company's sales performance in the second quarter was better than expected. Among them, offline sales in Hong Kong and Macau were 17% higher than the bank's forecast; sales for the first half of fiscal year 2027 already accounted for 51% of the bank's full-year sales forecast. The company previously announced that net profit is expected to exceed HK$150 million in the first half of the year, and sales momentum has not slowed down since October. The current trading performance still supports the bank's forecast for sales and net profit for the 2027 fiscal year.