Credit Suisse: SUNART RETAIL is expected to record a net loss for the full year, maintaining a "Hold" rating

The research report from Jefferies indicates that SUNART RETAIL (06808.HK) has issued a profit warning, expecting a net loss of between 300 million to 350 million RMB for the fiscal year 2026, which implies a net loss of approximately 177 million to 227 million RMB for the second half of fiscal 2026. This is mainly due to a decline in same-store sales, a decrease in average transaction purchase volume, and a drop in average selling price (ASP), while rental income has also seen a reduction.

The company will announce its performance on May 20, and the firm believes that market focus will be on the operational update regarding same-store sales trends, dividend trends, and updates on its three-year strategic plan; maintaining a "Hold" rating and target price of 1.90 RMB unchanged