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Why is SUNART RETAIL (06808) not considered Bullish despite being heavily discounted by Alibaba?
The company turned losses into profits, yet was severely cleared out by Alibaba at a Low Stock Price, with the maximum drop of nearly 30% on the next trading day, and a further drop of over 8% on the second trading day. Why is the supermarket leader SUNART RETAIL (06808) not considered Bullish?
Goldman Sachs: Assigning a "Buy" rating to Alibaba-W with a Target Price of 131 HKD.
Goldman Sachs released a Research Report stating a "Buy" rating for Alibaba-W (09988) with a Target Price of $134/131 HKD. On January 1, Alibaba announced the sale of all its shares in its non-wholly-owned subsidiary SUNART RETAIL (06808), expecting a maximum total return of 12.298 billion HKD (1.75 HKD per share, approximately 1.6 billion USD), but it must obtain approval from the State Administration for Market Regulation (SAMR) and meet other conditions. The firm believes that the company's announced divestment of non-core offline retail assets aligns with the management's ongoing focus on core businesses (i.e., E-Commerce and cloud services) and enhancing Shareholder returns strategy.
[Brokerage Focus] Everbright maintains a "Buy" rating on Alibaba (09988), noting that the sale of Intime Retail and SUNART RETAIL may negatively impact investment returns in the short term.
Jinwu Financial News | Everbright has issued a Research Report indicating that Alibaba (09988) and its subsidiary, New Retail, have entered into an agreement with Dehong Capital to sell all their shares in SUNART RETAIL, which account for approximately 78.7% of the total issued shares of SUNART RETAIL. A total of 7.508 billion shares are up for sale, of which 73.66% is indirectly held by Alibaba's subsidiary, and 5.04% is held by New Retail. The company operates hypermarkets and mid-sized supermarkets as well as membership store businesses under the brands "RT-Mart," "RT-Mart Super," and "M Membership Store." Alibaba is selling high.
[Brokerage Focus] Morgan Stanley maintains a "Neutral" rating on SUNART RETAIL (06808), indicating that its performance may face downward pressure.
Jinguo Financial News | Recently, Morgan Stanley released a research report on SUNART RETAIL (06808), providing an in-depth analysis of its development under the backdrop of the acquisition offer. The report shows that SUNART RETAIL has demonstrated certain performance in the past financial year. As of December 31, 2024, its stock price is 2.48 Hong Kong dollars, with a Market Cap of 3.048 billion USD, an enterprise value (EV) of 1.377 billion USD, and a total of 95.4 million circulating shares. In terms of profit, the EPS for the 2025 fiscal year is expected to be 0.05 RMB.
Hong Kong stock movement | Alibaba-W (09988) rose more than 2% during the session. Morgan Stanley expects the group's complete sale of SUNART RETAIL will enhance shareholder returns by the end of the year.
Alibaba-W (09988) rose over 2% during the session, and as of the time of writing, it has increased by 2.34%, priced at 83.2 Hong Kong dollars, with a trading volume of 1.252 billion Hong Kong dollars.
Hong Kong stocks' movement | SUNART RETAIL (06808) continues to drop over 5%. Yesterday, it once plummeted by 30% due to Alibaba's discounted clearance.
SUNART RETAIL (06808) continues to drop over 5%, with the stock having plummeted by 30% at one point yesterday. As of the time of writing, it has fallen by 5.05%, trading at 1.88 HKD, with a turnover of 9.184 million HKD.
Sun Art Retail Group Limited (HKG:6808) Stock Rockets 35% As Investors Are Less Pessimistic Than Expected
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