Gaoxin Retail (06808) rose more than 5% at the end of the session. As of press release, it rose 5.51% to HK$1.34, with a turnover of HK$16.555 million.
The Zhitong Finance App learned that Gaoxin Retail (06808) rose more than 5% at the end of the session. As of press release, it rose 5.51% to HK$1.34, with a turnover of HK$16.555 million.
According to the news, on February 26, Gaoxin Retail, the parent company of Da Runfa, announced that it will open 21 new stores to further expand its retail business. In addition, the new M member store is also being deployed at an accelerated pace. It is expected that the fourth Jiaxing store and the fifth Changshu store will open nationwide in the first half of the year.
UBS previously pointed out that news circulating in the market that Alibaba is considering reducing its retail asset holdings is driving up the company's stock price. The bank believes that although Gaoxin's retail stock price has risen, its market value of 10.9 billion yuan is still seriously undervalued because the net cash and overall value of investment properties is 20 billion yuan. Furthermore, Ali's potential sale may speed up Gao Xin's loss reversal, because the group may close loss-making stores in non-core regions, and labor arrangements will be more efficient. Although provision expenses may occur in the short term, they can increase annual profits in the long run.