Hong Kong – Hengan (1044.HK) Sanitary napkin business is expected to improve in 2H, ecommerce and other businesses grow fast November 7, 2019 29

PSR Recommendation: BUY Status: Upgraded
Target Price: HKD70.6

Investment Summary
Investment Highlights
Its interim revenue of FY2019 increased by 6.3% y.o.y., mainly driven by tissue paper
and the other businesses. The sanitary napkin business was down 4.6% due to the impact
of traditional channel reform, which is in line with our expectations. Traditional channel
accounted for over 60% of sanitary napkin revenue. During the period, the company
increased its efforts to transform the traditional sales channels, encourage small sales
team to sell products directly to retailers and provide upgraded and premium products.

About the author

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Tracy Ku
Investment Analyst

Graduated from Chinese University of Hong Kong, majoring in Economics for Bachelor Degree, and Journalism for Master Degree. Worked in financial news industry for more than four years.
Currently cover retailing, property sectors and IPOs. Good at analysis for the companies with economic policies and industry prospects.

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