The analyst rating for HENGAN INT'L (01044.HK) was raised to "Buy" by UBS due to the company's strong performance in 2H25, where revenue grew by 3.9% YoY to RMB11 billion and net profit increased by 31% YoY to RMB1.1 billion, surpassing market expectations. Additionally, UBS noted the better-than-expected performance of high-end products, leading them to increase their earnings forecasts for 2026-2028 by 4-9% and raise the target price from $32.5 to $34.9. The valuation is based on a projected 2026 PE ratio of 14x, which is favorable compared to the current estimated PE ratio of 11x for 2026 and a forecasted dividend yield of 6%.
