[ET Net News Agency, 16 June 2020] Goldman Sachs lowered its target price for Health
and Happiness (H&H) International (01112) to HK$40.6 from HK$41.9 and maintained its "buy"
rating.
The research house cited H&H management suggesting that a likely uneasy 2Q, given the
high base in 2Q 2019, channel destocking in IMF (infant milk formula) market, and sales
disruption in ANC (adult nutrition and care) Australia business due to lock-down measures.
However, management commented that Swisse's China active sales are maintaining their
strong momentum, recording solid results in 618 presales. The recently launched baby
formula reform should also help accelerate its coverage expansion over the next 1-2 years.
Goldman lowered H&H's 2020-22 EPS forecasts by 0-2% mainly to reflect the weaker trends
in IMF sales in 2Q. (KL)