Zhitong Financial APP learned that HSBC Research released a research report that the loss in the first half of Sasha International (00178) narrowed to 182 million yuan, excluding one-time items, the core loss narrowed to 191 million yuan, with classified online business as the only profitable item, upgraded its rating from "sell" to "hold", expected a loss of 225 million yuan in fiscal year 2022 and included the forecast figure for 2023-24, and the target price rose from HK $1 to HK $1.80.

According to the report, the company continues to cut costs and expects its Hong Kong and Macao business to break even with a gross profit margin of 40 per cent with monthly revenues of 234 million yuan. With 268 million yuan in cash and a standby credit line of more than 200 million yuan, and with improved cash flow, the bank believes it can survive a poor environment, but its long-term goal is to increase the proportion of business outside Hong Kong and Macao to more than 50%. But the mainland and online business is not easy.