According to the news app Zhitong Finance, Citigroup released a research report stating that it maintains a 'buy' rating on Sa Sa Int'l (00178), downgrades the net profit forecast for fiscal years 2025 and 2026 by 14% and 13%, respectively, and lowers the target price from HKD 1.74 to HKD 1.49. The bank believes that although macroeconomic weakness and changes in consumer behavior may slow Sa Sa's sales and profit recovery, the company's valuation is not high.

The report states that Sa Sa Int'l's net profit in fiscal year 2024 increased 2.76 times to HKD 219 million, slightly lower than the bank's expectations, and sales growth of 25% was also lower than expected. The final dividend is 5 cents per share, and the management plans to maintain a stable dividend payout ratio of 70% in the future.