Hengan International Group Co Ltd
01044: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$87.00 | Lfpx | Flrnfdtgb |
Hengan: Industry Competition Posed Headwinds to Tissue Revenue; Fair Value Retained
We reduce no-moat Hengan’s 2024 net income projection by 4% due to lower expectations for its tissue segment, which more than offset the improvement in the diaper segment. We think competition in the tissue industry has dampened Hengan’s sales in the first half as lower wood pulp prices allowed smaller players to offer cheap offerings via new retail channels such as video streaming platforms.