Core Viewpoint - UBS reports that Hengan International (1044.HK) is expected to see a decline in revenue and net profit for the first half of 2025, with a decrease of 0.2% and 2.6% respectively, and a projected net profit drop of approximately 12% when excluding foreign exchange gains, which aligns with the bank's expectations [1] Financial Performance - For the period, the tissue business revenue grew by 3% year-on-year, while the sanitary napkin business revenue fell by 14% [1] - Management indicated that wet wipes performed steadily, and the competitive landscape for tissue products was better than expected, but sales of sanitary products and mid-to-low-end diapers declined due to intensified competition [1] Future Outlook - The group anticipates stable growth in tissue sales, with an expected improvement in the gross margin of sanitary products in the second half of 2025 [1] - UBS has raised its earnings forecasts for Hengan for 2025 to 2027 by 1% to 4% and revenue forecasts by 1% to 2%, increasing the target price from HKD 27.7 to HKD 29.5 while maintaining a buy rating [1]
大行评级丨瑞银：升恒安国际目标价至29.5港元，卫生产品毛利率将于2025年下半年改善