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Hengan International Group (HKG:1044) May Have Issues Allocating Its Capital
Citi: Maintains hengan int'l 'Neutral' rating, target price lowered to 21.1 HKD.
Citi's research report states that it maintains a "neutral" rating on Hengan International (01044), lowering the net profit forecast for 2024 to 2026 by 15% to 17% to reflect weakening sales and profit prospects in the industry downturn and intense price competition. The target price is lowered from HK$25 to HK$21.1, equivalent to a forecast PE ratio of 9 times next year. The bank mentioned that it recently met with Hengan International management and believes that due to intense price competition, operational deleveraging, and reduced government subsidies, the company's sales and profit margins in the second half of the year will be more challenging than the first half. However, the management maintains the fixed annual dividend at HK$1 per share.
Hong Kong stock concept tracking | The Ministry of Commerce will introduce a batch of new policies in the consumer sector. Institutions are bullish on the growth of paper demand brought about by the recovery in consumer spending (with concept stocks)
The Ministry of Commerce will work with relevant departments to introduce a batch of new policies in the consumer sector.
Hengan International Group Company Limited's (HKG:1044) Intrinsic Value Is Potentially 75% Above Its Share Price
CITIC Securities: The contradiction between supply and demand in the pulp and paper industry continues to be under pressure, with prices continuously declining.
Currently, the demand side of the pulp and paper industry is weak, coupled with concentrated capacity release, the supply-demand contradiction continues to be under pressure, and prices continue to decline.
Hengan International Group (HKG:1044) Earnings and Shareholder Returns Have Been Trending Downwards for the Last Five Years, but the Stock Advances 6.4% This Past Week