01044 Should I Buy

BofA Securities has issued a Neutral rating for HENGAN INT'L based on several positive indicators. The firm estimates that the company's 2H25 revenue will grow by 1% year-over-year to RMB10.9 billion, driven by continuous improvements across its three major business segments. Additionally, HENGAN INT'L's gross margin is expected to improve to 33.1% due to a better product mix and normalization of raw material costs in the tissue business. Furthermore, BofA predicts an 8% year-over-year increase in the company's core net profit to RMB1 billion. Despite these positive developments, the Neutral rating suggests that the analysts believe the stock is fairly valued at the elevated target price of HKD30, reflecting a cautious outlook.