[ET Net News Agency, 5 November 2019] Huatai Research lowered its target price for
Health and Happiness (H&H) International (01112) to HK$46 from HK$52.5 and maintained its
"buy" rating.
The research house said H&H reported a weaker 3Q operational update. But Huatai expects
revenue growth to start recovering in 4Q, driven by new product launches, channel
expansion and diminishing impact from the Daigou channel.
Huatai revised down its net profit forecasts by 8%/10% to RMB1.2/1.4bn in 2019/2020. It
thinks H&H is still well-positioned in the premium segment, as its super-premium
categories registered 34% revenue growth. (KL)