Futu Securities: Cuts HENGAN INT'L (01044) target price to HKD 23.9, maintains "Hold" rating.

Fosun released a research report stating that HENGAN INT'L (01044) achieved a net profit in the first half of the year that exceeded both the bank's and market's expectations by 4%, mainly due to higher-than-expected other income; however, sales were 1% and 5% below the bank's and market forecasts, respectively. Due to a downward revision in HENGAN INT'Ls sales forecast, the bank also lowered its net profit projections for the company for 2026, 2027, and 2028 by 4%, 5%, and 6%, respectively, while maintaining its "Hold" rating but reducing the target price from HKD 25.2 to HKD 23.9. The bank mentioned that HENGAN INT'L's management aims to maintain sales at similar levels year-on-year in the second half of the year and to balance sales growth with profitability, planning targeted promotions to defend or enhance market share. In the long term, the key lies in exploring overseas market potential, with the group expected to disclose relevant plans as early as the second half of the year.