[ET Net News Agency, 23 August 2019] Daiwa Research trimmed its target price for Hengan
International Group (01044) to HK$70 from HK$72 and maintained its "buy" rating.
The research house said Hengan's 1H net profit of CNY1.89bn was 4% above Daiwa's
expectation, due to lower sanitary napkin sales and higher selling expenses that were
partially offset by higher tissue sales and interest income.
Management highlighted that the gross margin will expand on lower pulp costs, and
selling costs will be controlled better in 2H. Daiwa raised its 2019-21 EPS estimates by
1-3% on increased interest income amid higher advertising expenses. (KL)