UBS: HENGAN INT'L(01044) is rated as "Buy" with a target price lowered to 28.1 Hong Kong dollars.

UBS released a research report stating that HENGAN INT'L (01044) is rated as a "buy", with profit forecasts for 2024 to 2026 being reduced by 10% to 17% to reflect last year's weak performance and this year's business outlook. The target price has been lowered from 31.3 Hong Kong dollars to 28.1 Hong Kong dollars. HENGAN INT'L management recently attended the UBS Greater China Seminar held in Shanghai. When discussing last year's sales performance, they specifically mentioned that due to intense competition in the tissue and sanitary napkin industry, sales growth for sanitary paper and sanitary napkins in the second half of last year may have decreased by over 3% and over 4% respectively. The bank stated that in terms of sales volume, Hengan's market share in the tissue market has increased slightly, but sales revenue for tissue and sanitary napkin businesses have dropped. This may reflect increased promotional expenses putting pressure on average selling prices. Management expects sales and profits to remain stable in 2025, with slight growth in tissue and diaper sales revenue, a slight decrease in sanitary napkin sales revenue, and continued intense industry competition. The expected dividend per share is forecasted to remain at 1.4 RMB.