Company ReportOutperform (prior：Outperform) TP：HK$ 6.80 SA SA INTL HLDGS(00178.HK) Sa Sa Int’l (Sa Sa, or the company as follows) announced its FY2010 results recently. Sales revenue increased 13.9% yoy to HKD 4.1bn yuan, net profit up 20.6% to HKD 381mn yuan. EPS was 0.28 yuan, pay out ratio was 102%. The FY2010 results of Sa Sa is better than our estimation, due to administration expense reduction (admin exp/sales ratio decreased from 4.7% to 4%). Net profit margin was improved from 8.8% to 9.3%. Sa Sa's sound fundamental and high dividend yield (~5%) remains attractive. We adjust our FY2011-FY2013 earnings estimation for Sa Sa with EPS of 0.31 yuan, 0.37 yuan and 0.43 yuan respectively, up 13.6%, 18.1% and 18.2% yoy. Our target price of HKD 6.80 implying 22XFY2011PE, we reiterate outperform rating on Sa Sa. More contribution from diversified market in the future Current price：HK$5.94 China Merchants Securities (HK) Ying LIANG 83295342 ly@cmschina.com.cn 29 Jun 2010 Key data Please see important notice on the last page. 1 of 7 Results review In FY2010, HK & Macau area accounts for more than 80% profit of the company, while the remaining profit come from other business areas (Malaysia/Singapore/Taiwan/sasa.com). Losses from Mainland China narrowed from 27 mn yuan to 18 mn yuan, due to cost management improvement and counters rationalization. HSI Index 20128.99HSCEI Index 11466.24S/O（mn） 1381S/O (HK)（mn） 1394Mkt cap (HK) (mn) 8279BVPS（HKD） 0.74Major share holder Holding (％)Free float 33.02Industry More contribution from diversified market in the future Turnover from HK & Macau climbed 10.3% to HKD 3.2bn, driven by 7.1% SSS growth. The management is confident in HK & Macau business expansion, for it plans to add 12 new stores in FY2011. We expect HK & Macau area will record double digit sales growth, thanks to improved consumer sentiment and a broader customer base. Share performance %1m 6m12mAbsolute return -8 563Relative return -10 1252 -2002040608010 012 0Jul-09Oct -09Jan-10Jun-10(%)00178. HKHS I Ind ex Source：Bloomberg Moreover, in FY2011, we expect Taiwan and Singapore business will turn to profit, while Malaysia and sasa. Com will have more than 20% and 30% sales growth respectively according to the management guidance. For mainland China business, management has an aggressive target of doubling store count, noting that expanding the network is a priority over reaching breakeven in China. The breakeven schedule may have to be delayed to FY2012, in our view. Related research Financials 31/03 HKD mn 2009 2010 2011E2012E 2013ERevenue 3609.0 4111.3 4769.25532.2 6417.4 Growth 12.0% 13.9% 16.0%16.0%16.0%Net income 316.0 381.1 433.1 511.7 604.7 Growth -9.3% 20.6% 13.6%18.1%18.2%EPS(HKD) 0.23 0.28 0.31 0.37 0.43 DPS(HKD) 0.23 0.28 0.31 0.31 0.37 P/E(X) 25.9 21.6 19.1 16.2 13.7 P/B(X) 7.3 6.9 6.6 6.2 5.5 ROE 28.2% 31.9% 34.8%38.1%39.9%Source: Company data, CMS(HK) estimate 公司报告优于大市 莎莎国际(00178.HK) (上次：优于大市) 莎莎国际（“公司”，下同）2010财年业绩略优于我们之前预期。营业额同比增长13.9%至41.1亿（港元，下同），净利润同比增长20.6%至3.8亿元。每股盈利0.28元，全年派息率102%。莎莎2010财年业绩略优于我们预期，主要由于行政费用缩减得力，行政费用占销售额比重下降0.7个百分点至4%，毛利率提升0.4个百分点至44.1%，净利率上升0.5个百分点至9.3%。我们认为莎莎稳健的经营表现及较高股息收益率~5%仍然吸引。我们将莎莎2011-2013财年的每股盈利调高至0.31、0.37及0.43元，同比增长13.6%、18.1%及18.2%。我们的目标价6.80港元对应2011X22PE，维持对莎莎的“优于大市”评级。 各区域业务齐头并进 目标价：HK$ 6.80 现价：HK$5.94 招商证券(香港)研究部 梁盈 83295342 ly@cmschina.com.cn 2010年6月29日 基础数据 恒生指数 20128.99未来盈利增长来自各区域业务齐头并进 占销售额比重80%的港澳地区，2010财年贡献了超过80%的净利润，内地业务仍然处于亏损状态，但亏损已由09年的2720万元缩减至1860万元。其他地区（台湾、新马及Sa Sa网站）净利润贡献超过10%。 11466.24H股指数 1381总股数（万股） 1394港股股数（万股） 8279港股市值(港元百万) 0.74每股净资产（港元） 港澳地区 由于来自港澳居民和内地游客的营业额有所增加，港澳地区2010财年同店销售增长7.1%。今年4月1日至6月20日，港澳地区销售增长达18.6%，同店销售增长为10.3%。公司对港澳地区扩张仍然抱有信心。2011财年计划增加门店从73间增至85间。我们预计全年港澳地区销售额有双位数增长。 持股(％)主要股东 33.02自由流通量 行业股价表现 %1m 6m12m中国内地 2010财年，更有力的成本控制及更强店铺销售使得内地业务亏损缩窄至1860万元。未来公司计划先加快扩展内地网络，2011财年将内地销售点由35个增加至67间，接近翻番。随着内地亏损的逐步缩窄，我们预计内地业务有望于2012年扭亏，比原先预计的情况推迟了一年，主要是考虑到有更多新店的加入。 绝对表现 -8 563相对恒指表现 -10 1252 -20020406080100120Jul-09Oct -09Jan-10Jun-10(%)00178. HKHSI In dex 其他地区 台湾地区营业额上升11.7%至1.47亿元，亏损收窄至轻微亏损。新加坡市场营业额增加15.6%至1.6亿元。马来西亚营业额同比增长24.1%至1.8亿元。Sa Sa网站营业额同比增长56.7%至2.4亿元，对公司净利润贡献超过7%。管理层预计2011财年Sa Sa网站将维持30%以上的销售增长。公司在新加坡、马来西亚及台湾也会积极开店，预计2011财年马来西亚业务将维持20%左右的销售增长，新加坡开始有利润贡献，而台湾达到收支平衡。 资料来源：彭博 相关报告 资本开支计划 2011财年公司计划资本开支1.4亿元，其中70