HK Stock Market Move | SUNART RETAIL (06808) rises more than 4% during trading hours. UBS expects the company's annual net profit to exceed market expectations this year.

SUNART RETAIL (06808) rose more than 4% in intraday trading, and as of the time of writing, it has risen 3.68% to 1.97 Hong Kong dollars with a trading volume of 12.06 million Hong Kong dollars. UBS released a research report stating that excluding one-time drag factors, it is expected that SUNART RETAIL's recurring net profit for the 2025 fiscal year will exceed market expectations. Store renovation and product mix adjustments in the 2026 fiscal year will accelerate compared to the 2025 fiscal year, leading to an expansion of the net profit margin, which may exceed the management's previous target of a long-term net profit margin of 1.5%, which the market has not completely reflected yet. The bank predicts that the company's same-store sales growth in the second half of the 2025 fiscal year will accelerate by 0.3% compared to the first half, benefiting from improved offline traffic driven by increased product price competitiveness. It is forecasted that the net profit for the 2025 fiscal year will range from 450 million to 540 million Chinese yuan. It is worth noting that on February 28, SUNART RETAIL announced a series of changes to its board members. The announcement mentioned that Huang Mingduan will resign as chairman of the board, Qin Yuehong and Han Li have resigned as non-executive directors. Hu Yuneng will be appointed as the chairman of the board and other positions. It is reported that SUNART RETAIL and the offeror Paragon Shine Limited jointly announced that the closing of the sale and purchase agreement was completed on February 27, 2025.