CROSBY Research – SunArt Retail (6808 HK/NR): Turnaround in FY25

23 May 2025

SunArt’s FY25 (Mar-end) revenue was down by 1.4% YoY to Rmb71.6bn, mainly due to i) the contraction of supply chain business and store closures which accounted for 1.4% decline in sales; and ii) closures on loss making stores which have 1.6% impact on revenue. Meanwhile, gross profit reduced by 4.0% YoY to Rmb17.2bn due to enhanced price competitiveness of products, with GPM slightly down by 0.6ppt YoY to 24.1%. The company’s SSSG was up by 0.6% YoY in FY25, as average ticket price increases on strengthened price competitiveness. Online sales was up by MSD YoY due to higher ticket size amid increased purchases per order, while offline sales was gradually recovering with stabilizing offline traffic and steady ticket size.