Hengan International Group Co Ltd

01044: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$44.00	Lsv	Crrspkff

Hengan: Industry Competition Posed Headwinds to Tissue Revenue; Fair Value Retained

Jacky Tsang

Jun 17, 2024

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.

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