BofA Securities has issued a Neutral rating for HENGAN INT'L based on several positive indicators. The firm estimates that the company's 2H25 revenue will grow by 1% year-over-year to RMB10.9 billion, driven by continuous improvements across its three major business segments. Additionally, HENGAN INT'L's gross margin is expected to improve to 33.1% due to a better product mix and normalization of raw material costs in the tissue business. Furthermore, BofA predicts an 8% year-over-year increase in the company's core net profit to RMB1 billion. Despite these positive developments, the Neutral rating suggests that the analysts believe the stock is fairly valued at the elevated target price of HKD30, reflecting a cautious outlook.

Citi Research

Neutral

maintain

$27

2025-12-04

Reason

Citi Research

Price Target

$27

2025-12-04

maintain

Neutral

Reason

Citi Research raised its net profit forecasts for HENGAN INT'L for 2025-2027 by 12.1%, 18.8%, and 19.7% due to lowered SG&A/sales ratio assumptions. This adjustment reflects insights from a recent conference in China, where expectations were set for the company to recover from a low base in the second half of 2025, with a stable outlook for 2026. Consequently, Citi increased its target price from $23.1 to $27, maintaining a forward PE ratio of 11x. However, the broker kept the rating at Neutral, indicating that without significant structural improvements, HENGAN INT'L is viewed primarily as a yield-generating company with a yield of 5.4%.

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01044 Should I Buy

01044 Should I Buy

Should You Buy HENGAN INT'L (01044) Today? Analysis, Price Targets, and 2026 Outlook.

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