Chinese tissue maker Hengan sinks to near 12-year low; Daiwa downgrades

Hengan International

19/07/2021 08:19

** Shares of sanitary napkin and tissue paper products maker
Hengan International Group Co Ltd  1044.HK  fall as much as 3.4%
to HK$47.05, the lowest since November 2009 
    ** Stock set for worst day since June 30 and on course for
fourth consecutive session of decline; the fifth biggest
percentage decliner in the benchmark Hang Seng Index  .HSI 
    ** Brokerage Daiwa downgrades the stock to "hold" from "buy"
and cuts TP to HK$51.30 from HK$64 amid weakening top-line
growth outlook 
    ** Daiwa says price competition is intensifying in
lower-tier cities of Hengan's core profit contributor, while
international brands are becoming more aggressive on price
promotions in the sanitary napkin segment  
    ** As of last close, shares in the Fujian-based company had
dropped 11.3% this year
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
falls 2.02%, and the composite industry index tracking consumer
staples  .HSCICS  drops 1.6%
    ** The Hang Seng China Enterprises Index  .HSCE  slips 1.8%,
and the benchmark index  .HSI  eases 1.7%


 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))