[ET Net News Agency, 19 July 2019] Nomura lowered its target price for Hengan
International (01044) to HK$58.2 from HK$92.3 and downgraded its rating to "neutral" from
"buy".
The research house expects sales from the traditional channel to be weak for Hengan
given a weak macro driving a low appetite to stock up new inventory. As 70% of Hengan's
sanitary napkins are sold through the traditional channel, both sales and margins could
miss for 1H.
Also, under its Amoeba reforms programme, Hengan has been pushing sales through the
direct sales format, rather than through distributors, in an effort to better align new
product launches so as to enhance its competitiveness in the long term.
Nomura believes problems in the traditional trade are specific to Hengan, as Vinda
(03331) has said that the channel rebounded to single-digit growth in 1H, reflecting
Hengan's difficulties in promoting its high-end products to end retailers. (KL)
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01044 HENGAN INT'L
Nominal 
25.150 +0.450 (+1.822%) Others
19/07/2019 15:35
[I-bank focus]Nomura lowers Hengan Int'l (01044) to HK$58.2
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