[ET Net News Agency, 2 November 2018] Jefferies Research lowered its target price for
Hengan International (01044) to HK$86 from HK$92 due to EPS cut, and maintained its "buy"
rating.
The research house said Hengan's tissue sales re-accelerated 4Q-to-date following a
moderate 3Q. It attributed the momentum return to (1) channel re-stocking, (2) consumption
zeal around the 11-11 Shopping Festival, (3) Amoeba sales efforts, (4) personal income tax
cut, and (5) an easy base.
Jefferies thinks the encouraging trend should help alleviate market concerns, well
validating its view that Hengan's market share gain built on function premiumization is
sustainable.
Jefferies lowered its 2018-20 EPS estimates by 6%-7%. (KL)