[ET Net News Agency, 4 December 2018] UBS Global Research lowered its target price for
Hengan International Group (01044) to HK$55.18 from HK$60.69 and maintained its "sell"
rating.
The research house said its latest study shows both Hengan's like-for-like (LFL) and
median unit prices registered the largest YoY declines in August-October among seven
tracked companies, with continued mix deterioration.
Hengan's SKU mix in the premium segment (Rmb2.25+ unit price) remained the second
lowest, while P&G's maintained the highest premium SKU mix. UBS remains bearish on Hengan,
given potential revenue and margin pressure on its sanitary napkin division in view of the
pricing/mix weakness, as well as rising competition from P&G in the high end and private
labels in the low end. (KL)