Glonghui, June 16丨According to Citigroup Research's report, Sasha International (0178.HK)'s 2023 fiscal year results turned a loss into a profit, recording a profit of 58 million yuan, in line with earlier earnings forecasts. Among them, Hong Kong and Macao's gross margin had begun to improve in the third fiscal quarter before customs clearance, which was a pleasant surprise. According to the bank, Sasha seems to be ready to meet the post-pandemic recovery with a streamlined cost structure. Considering that the current price level is about 20 times the predicted price-earnings ratio for the 2024 fiscal year, which is lower than the valuation level of about 22 times before the pandemic, the investment rating was raised from “selling” to “buying” in one fell swoop. Citi also raised its net profit forecast for the 2024-2025 fiscal year by 373% and 38% to reflect that revenue and profit margin performance will improve under the reopening of borders, a better product sales mix, and better operational efficiency. Accordingly, the target price was raised from HK$0.92 to HK$1.73. The stock is currently reported at HK$1.49, with a total market value of HK$4.6 billion.