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6808

Sun Art Retail GroupSEHK:6808 Stock Report

Last Price

HK$3.02

Market Cap

HK$28.8b

7D

-9.0%

1Y

-60.8%

Updated

19 Jan, 2022

Data

Company Financials +
6808 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

6808 Stock Overview

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.

Sun Art Retail Group Competitors

Lianhua Supermarket Holdings

SEHK:980

HK$850.9m

Price History & Performance

Summary of all time highs, changes and price drops for Sun Art Retail Group
Historical stock prices
Current Share PriceHK$3.02
52 Week HighHK$8.78
52 Week LowHK$2.78
Beta0.34
1 Month Change3.43%
3 Month Change-34.49%
1 Year Change-60.83%
3 Year Change-61.43%
5 Year Change-60.83%
Change since IPO-70.16%

Recent News & Updates

Jan 19
Sun Art Retail Group Limited's (HKG:6808) Intrinsic Value Is Potentially 62% Above Its Share Price

Sun Art Retail Group Limited's (HKG:6808) Intrinsic Value Is Potentially 62% Above Its Share Price

How far off is Sun Art Retail Group Limited ( HKG:6808 ) from its intrinsic value? Using the most recent financial...

Nov 08
Sun Art Retail Group's (HKG:6808) Returns On Capital Not Reflecting Well On The Business

Sun Art Retail Group's (HKG:6808) Returns On Capital Not Reflecting Well On The Business

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

6808HK Consumer RetailingHK Market
7D-9.0%-6.6%0.3%
1Y-60.8%-53.3%-16.0%

Return vs Industry: 6808 underperformed the Hong Kong Consumer Retailing industry which returned -53.3% over the past year.

Return vs Market: 6808 underperformed the Hong Kong Market which returned -16% over the past year.

Price Volatility

Is 6808's price volatile compared to industry and market?
6808 volatility
6808 Average Weekly Movement8.4%
Consumer Retailing Industry Average Movement7.0%
Market Average Movement6.7%
10% most volatile stocks in HK Market13.2%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 6808 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 6808's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1998123,413Xiaohai Linhttps://www.sunartretail.com

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, 2021, it had a total of 490 hypermarkets, six superstores, and 32 mini stores.

Sun Art Retail Group Fundamentals Summary

How do Sun Art Retail Group's earnings and revenue compare to its market cap?
6808 fundamental statistics
Market CapCN¥23.49b
Earnings (TTM)CN¥2.14b
Revenue (TTM)CN¥97.30b

11.0x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6808 income statement (TTM)
RevenueCN¥97.30b
Cost of RevenueCN¥73.24b
Gross ProfitCN¥24.05b
ExpensesCN¥21.91b
EarningsCN¥2.14b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.22
Gross Margin24.72%
Net Profit Margin2.20%
Debt/Equity Ratio0%

How did 6808 perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Sun Art Retail Group undervalued compared to its fair value and its price relative to the market?

38.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6808 (HK$3.02) is trading below our estimate of fair value (HK$4.89)

Significantly Below Fair Value: 6808 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6808 is poor value based on its PE Ratio (11x) compared to the Hong Kong Consumer Retailing industry average (9.5x).

PE vs Market: 6808 is poor value based on its PE Ratio (11x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6808 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 6808's PB Ratio (0.9x) is in line with the HK Consumer Retailing industry average.


Future Growth

How is Sun Art Retail Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6808's forecast earnings growth (6.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 6808's earnings (6.1% per year) are forecast to grow slower than the Hong Kong market (16.2% per year).

High Growth Earnings: 6808's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6808's revenue (3.1% per year) is forecast to grow slower than the Hong Kong market (11.7% per year).

High Growth Revenue: 6808's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6808's Return on Equity is forecast to be low in 3 years time (10%).


Past Performance

How has Sun Art Retail Group performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6808 has high quality earnings.

Growing Profit Margin: 6808's current net profit margins (2.2%) are lower than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: 6808's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: 6808's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6808 had negative earnings growth (-28.6%) over the past year, making it difficult to compare to the Consumer Retailing industry average (51.5%).


Return on Equity

High ROE: 6808's Return on Equity (8.3%) is considered low.


Financial Health

How is Sun Art Retail Group's financial position?


Financial Position Analysis

Short Term Liabilities: 6808's short term assets (CN¥36.1B) exceed its short term liabilities (CN¥35.6B).

Long Term Liabilities: 6808's short term assets (CN¥36.1B) exceed its long term liabilities (CN¥7.1B).


Debt to Equity History and Analysis

Debt Level: 6808 is debt free.

Reducing Debt: 6808 has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

Debt Coverage: 6808 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6808 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Sun Art Retail Group current dividend yield, its reliability and sustainability?

3.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6808's dividend (3.66%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.34%).

High Dividend: 6808's dividend (3.66%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.06%).


Stability and Growth of Payments

Stable Dividend: 6808's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6808's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.2%), 6808's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6808's dividends in 3 years are forecast to be well covered by earnings (40.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Xiaohai Lin (49 yo)

0.67

Tenure

Mr. Xiaohai Lin has been an Executive Director of Sun Art Retail Group Limited since 22 December 2020 and has been its Chief Executive Officer since May 10, 2021. Mr. Lin is the vice-president of Alibaba G...


Leadership Team

Experienced Management: 6808's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: 6808's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sun Art Retail Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sun Art Retail Group Limited
  • Ticker: 6808
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Implied Market Cap: HK$28.810b
  • Shares outstanding: 9.54b
  • Website: https://www.sunartretail.com

Number of Employees


Location

  • Sun Art Retail Group Limited
  • Hopewell Centre
  • Level 54
  • Wan Chai
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 15:55
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.