Cosmetic retailer Sa Sa International (0178) plans to repurchase shares with no more than HK$20 million in the coming year, citing the undervalued share price.
Sa Sa will instruct the trustee responsible for administering the share award scheme to purchase Shares from the open market, according to an exchange filing.
The company considered that the value of its shares is currently seriously undervalued, and hoped to boost investors' confidence and shareholders' return through repurchase,
Sa Sa emphasized that it has sufficient financial resources to repurchase and maintain a sound financial position.
In addition, Sa Sa's total turnover for the second quarter grew 4.7 percent to HK$960 million.
During the period, offline sales in Hong Kong and Macau expanded 7.7 percent to HK$687 million and the same-store sales increased by 11.2 percent, benefiting from the continuous rebound in visitor arrivals.
As at the end of June, there were 157 offline stores in total. Among them, 85 were in Hong Kong and Macau, representing a net increase of 3 stores year-on-year. According to the company, all offline stores in the mainland China have been closed to focus on the development of online business.
Sa Sa noted that retail industry is still affected by the unstable macro market in the short term but it is cautiously optimistic about the market in the future with the multiple-entry permits for mainland visitors and the mega events organized by the Hong Kong government.
STAFF REPORTER
