[ET Net News Agency, 27 March 2020] Jefferies Research lowered its target price for
Hengan International (01044) to HK$69.1 from HK$70.2 and maintained its "buy" rating.
The research house believes Hengan, in 2020, will benefit from lower pulp price for
tissue segment, price stabilization by channels for sanitary napkins, and lower marketing
expense.
In 2021/22, Jefferies estimated its sales growth will recover to 8%/8%.
During the post-results call, management mentioned that the low return marketing will be
scrapped in 2020. It has reviewed the procedure. An expected return or sales projections
are required for any marketing projects or events. They will be approved by the head
office. (KL)