Core Viewpoint - Citigroup has adjusted its profit forecasts for Hengan International (01044) for 2026 and 2027, increasing the target price from HKD 27 to HKD 28.2 while maintaining a "Neutral" rating [1] Group 1: Financial Performance - Hengan's net profit for the second half of 2025 is expected to rebound by 31% year-on-year, driven by a recovery in gross margin from a low base, aligning with Citigroup's expectations [1] - Revenue growth for the second half of 2025 is projected at 4%, meeting forecasts, with improved sales in tissue and hygiene products offsetting declines in other business segments [1] - Gross margins across all business segments in the second half of 2025 are stronger than expected, although lower government subsidies and higher advertising and promotional expenses have offset this, resulting in operating profit and net profit meeting expectations [1] Group 2: Management Outlook - Despite the stable performance in the second half of 2025, management aims to maintain stable sales and profit margins in 2026 due to intense competition and potential pressure from raw material costs [1] - Management plans to address potential challenges by improving product mix and enhancing operational efficiency [1]
花旗：恒安国际(01044)去年下半年纯利反弹31% 升目标价至28.2港元