[ET Net News Agency, 11 December 2018] Deutsche Bank lowered its target price for
Hengan International (01044) to HK$76.9 from HK$86.5 to reflect the margin pressure and
maintained its "buy" rating.
The research house has recently attended Hengan's investor day. Management stated that
after a slowdown in sales growth momentum in 3Q in sanitary napkins and tissues, Hengan
has been recovering in 4Q.
Management's sales targets in the two segments for 2019 are similar to its 2018 targets,
i. e. higher-than-market sales growth in sanitary napkins and double-digit sales growth in
tissues. It will replace mega company-building campaigns like the one done with CCTV in
2018 with less expensive but more effective target marketing campaigns in 2019. (KL)