Macquarie released a research report stating that it expects SUNART RETAIL (06808) same-store sales to decline by high single digits year-over-year in fiscal year 2026, reflecting the impact of substantial delivery subsidies in instant retail. Gross margins are under pressure from discounting, while private label products provide some help, though their contribution remains insignificant. The firm has cut its earnings per share forecasts for SUNART RETAIL for fiscal years 2026 and 2027 by 69% and 39% respectively, reflecting a significant downward revision to same-store sales expectations for fiscal 2026 and the impact of operating leverage. The rating has been downgraded to "neutral" with the target price reduced from HK$2.9 to HK$1.7.