<div id="readability-page-1"><div><p>Citi published a research report noting that HENGAN INT'L (01044.HK)<span> </span><span> -0.780 (-3.359%)  </span> <span> Short selling $50.39M; Ratio 43.171%  </span>  recorded weak sales performance in the first five months of this year due to price competition. Tissue sales volume and average selling price fell by mid- to high-single-digit percentages, sanitary napkin sales were flat or slightly down, and diaper sales also declined by mid- to high-single-digit percentages. The broker accordingly lowered its earnings forecasts for 2026 to 2028 by 16% to 20% and cut the TP from HKD28.2 to HKD24.3, while maintaining a Neutral rating.</p><p>Citi added that starting in June, higher procurement costs for petrochemical materials following the Middle East conflict have begun to be reflected in accounts, and costs are expected to rise. It forecast 1H26 gross margin to be similar to the full-year level in 2025, implying a YoY increase but a HoH decline. Together with continued reductions in government subsidies and adverse foreign exchange factors, this is expected to further weigh on net profit margin. (gc/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-22 12:25.)</p></div></div>

01044

<p>Citi cut Hengan International's target price to HKD24.3 from HKD28.2, maintaining a Neutral rating, citing weak sales in the first five months due to price competition. The bank lowered earnings forecasts for 2026-2028 by 16%-20%. Rising petrochemical costs from Middle East tensions, reduced government subsidies, and adverse forex factors are expected to pressure net profit margins.</p>

Citi Cuts HENGAN INT'L TP to HKD24.3, Maintains Neutral