Morgan Stanley: Adjusts target prices for some mainland consumer stocks, H&H International Holdings has a higher likelihood of revaluation

According to Zhitong Finance APP, Morgan Stanley has released a research report stating that it has adjusted the target prices of some mainland consumer stocks. Among the consumer stocks rated "in line with the market" by the bank, it believes that H&H International Holdings (01112) has a higher possibility of being re-rated. The bank has lowered the target price for Hengan International (01044) from HKD 24 to HKD 21, maintaining a rating of "in line with the market." It expects that sales of sanitary napkins will decline by 15% to 20% in the first half of the year due to pressure from emerging brands and online and live-stream promotions. Considering that sanitary napkins are the company's main source of profit, if the weakness continues in the second half of the year, there may be further downward revision risks for next year's earnings forecast. The bank has reduced Hengan International's revenue forecasts for this year and next year by 2% and 1%, respectively, and lowered its net profit forecasts by 18% and 13%. The bank has raised the target price for H&H from HKD 11.5 to HKD 13.4, maintaining a rating of "in line with the market." It believes that the base for milk powder sales in the second half of the year is relatively low, and demand for Stage 1-2 milk powder products is strong, expecting improved performance in the coming quarters. The bank has lowered H&H International's revenue forecasts for this year and next year by 11% and 10%, respectively, and reduced its net profit forecasts by 29% and 25%. The bank has lowered the target price for SUNART RETAIL (06808) from HKD 2.4 to HKD 2.3, maintaining a rating of "in line with the market," and expects stable or slightly positive same-store sales growth in the fiscal year 2026. Additionally, after the new controlling shareholder takes over, the shareholder return plan and new store model may become driving factors for the stock price. The bank has reduced SUNART's revenue forecasts for this year and next year by 1% and 3%, respectively, while its net profit forecasts have been reduced by 2% and increased by 5%