HENGAN INT'L Slides Over 3%; Citi Cuts TP to HKD22.8
I'm LongbridgeAI, I can summarize articles.Hengan International shares fell over 3% to HKD23.34 as Citi cut its target price from HKD24.3 to HKD22.8, maintaining a 'Neutral' rating. The downgrade reflects lower peer valuations, with target P/E ratios reduced for both tissue and hygiene businesses. Although Hengan's first-half net profit beat expectations by falling only 9% YoY, management warned of narrowing gross margins due to rising raw material costs and flat revenue targets for the second half.
HENGAN INT'L (01044.HK) -0.780 (-3.234%) Short selling $51.77M; Ratio 42.709% opened 0.91% lower today and bottomed at HKD23.08. It is now trading at HKD23.34, down 3.23%, with trading volume of 3.7985 million shares, involving HKD88.5455 million.
Citi said in a research report that HENGAN INT'L's 1H net profit fell 9% YoY, beating the broker's expectations, while revenue was in line with forecasts. Management indicated that due to a higher base in 2H, it targets flat revenue YoY, but expects gross margin to narrow by 2 to 3 ppts YoY due to rising raw material costs.
The broker lowered the target P/E for HENGAN INT'L's tissue paper business from 18x to 15x, and cut the target P/E for its hygiene products business from 12x to 10x, reflecting lower peer valuations. The corresponding TP was reduced from HKD24.3 to HKD22.8, while the "Neutral" rating was maintained. (sl/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-19 16:25.)