Core Viewpoint - Macquarie has downgraded the net profit forecasts for Hengan International (01044) for the fiscal years 2024 and 2025 by 12% and 9% respectively, reflecting the anticipated need for higher advertising and promotional expenses in a competitive market [1] Business Performance - Hengan's sales in the second half of last year increased by 1.3% year-on-year, which was below Macquarie's expectations [1] - Sales of tissue and diapers grew by 2.7% and 3.5% respectively, a slowdown compared to the first half of the year where growth was 22.7% and 5% [1] - Sanitary napkin sales declined by 2.3% year-on-year, contrasting with a 3% increase in the first half, attributed to intensified price competition due to falling wood pulp prices [1] Retail Channel Insights - Sales from new retail channels increased by 7%, contributing 31% to total sales, compared to 29.5% in the same period of 2022 [1] - The tissue business gained further market share last year, while the sanitary napkin segment has shown good growth momentum since the beginning of 2024 [1] - The tissue segment is facing intense competition, leading the company to potentially enhance promotions to stimulate growth [1]
麦格理：予恒安国际(01044)“跑赢大市”评级 目标价降至46港元