The Discounted Cash Flow (DCF) valuation of Sun Art Retail Group Ltd (6808.HK) is 2.10 HKD. With the latest stock price at 2.32 HKD, the upside of Sun Art Retail Group Ltd based on DCF is -9.6%.

Is 6808.HK a buy or a sell?

Based on the latest price of 2.32 HKD and our DCF valuation, Sun Art Retail Group Ltd (6808.HK) is a sell. Selling 6808.HK stocks now will result in a potential gain of 9.6%.

	Range	Selected
WACC / Discount Rate	7.1% - 9.0%	8.0%
Long-term Growth Rate	2.5% - 4.5%	3.5%
Fair Price	1.51 - 3.58	2.10
Upside	-34.8% - 54.1%	-9.6%

2.32 HKD

Stock Price

2.10 HKD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

6808.HK DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

	03-2025	03-2026	03-2027	03-2028	03-2029	03-2030

Revenue	71,552	75,263	77,233	78,778	81,293	82,918
% Growth	1%	5%	3%	2%	3%	2%

Cost of goods sold	(54,316)	(57,133)	(58,629)	(59,801)	(61,710)	(62,944)
% of Revenue	76%	76%	76%	76%	76%	76%

Selling, G&A expenses	(16,941)	(17,820)	(18,286)	(18,652)	(19,247)	(19,632)
% of Revenue	24%	24%	24%	24%	24%	24%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	735	773	793	809	835	852
% of Revenue	1%	1%	1%	1%	1%	1%

Tax expense	(644)	(241)	(247)	(252)	(260)	(266)
Tax rate	63%	22%	22%	22%	22%	22%

Net profit	386	842	864	882	910	928
% Margin	1%	1%	1%	1%	1%	1%