Sa Sa’s Shares Slide 9% After Citibank Downgrades to Sell

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Investing.com - Hong Kong’s beauty product chain store Sa Sa International Holdings Ltd. (HK:0178) saw its shares slide 9.4% to HK$3.17 on Thursday in Asia after Citibank downgraded the company’s international credit rating to “sell” from “buy.”

Citibank lowered the targeted share price of Sa Sa from HK$3.8 to HK$2.7 on softer sales growth in November compared to last month, Aastocks reported citing the research notes. Citibank said increased customer traffic from improved transport facilities might not be sufficient to compensate for weaker consumer power from the global economic slowdown.

The company announced Wednesday that same-store sales in third-quarter were worse than expected, although its interim results for the period ending on Sept. 30, matched expectations.

Sa Sa said that the market sentiment stayed gloomy on fluctuations in the stock market and RMB exchange rate amidst the U.S.-China trade war. The sales growth in the second quarter also slowed due to the 2018 FIFA World Cup and typhoons.

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