Goldman Sachs

According to the report, Sasha International (00178.HK)'s same-store sales and gross profit performance for the first quarter ending June 30 fell short of expectations. Expected turnover performance continued to be weak. The earnings forecast per share for the next 3 years was lowered by 1% to 5% to maintain the “sell and sell” rating. The target price was lowered from 3.4 yuan to 3.3 yuan, which is equivalent to 13 times the predicted price-earnings ratio.

The bank predicts that the company's same-store sales this fiscal year will be -5%, gross margin will drop 60 basis points, operating costs will be similar year over year, and annual profit will drop by about 18% year over year.