According to a report published by Xiaomo, Sasha International (1.8,0.00,0.00%) (00178) lost 37 million yuan in the middle of fiscal year 2020, which is in line with the profit warning it announced in mid-September. Compared to the 29% drop in the second fiscal quarter, the Group's same-store sales in Hong Kong and Macao from October 1 to November 18 this year fell 39% year on year. This was mainly due to a high base and weak performance in October.

As for dividends, the group suspended mid-term interest payments, and Xiaomo expects that it will not pay dividends in the second half of the fiscal year, and that the dividend ratio will resume to 70% in the next two years.

Xiaomo lowered the target price of salsa from HK$2.5 to HK$1.7, maintaining a “neutral” rating. The report predicts that the Group's revenue will drop 18% in the second half of the fiscal year, but it will turn into profit, with a net profit margin of 4.5%, and the effects of cost reduction efforts are expected to lag behind and will only be reflected in the next fiscal year's results.