The Zhitong Finance App learned that Jefferies released a research report saying that Hengan International (01044)'s net profit for the first half of the year was 4% better than the bank's and market expectations, mainly because other revenue was higher than expected; sales were lower than the bank's and market forecasts of 1% and 5%, respectively. Due to lowering Hengan International's sales forecast, the bank also downgraded the company's 2026-28 net profit forecast by 4%, 5% and 6% to renew its “hold” rating, but the target price was lowered from HK$25.2 to HK$23.9.

The bank mentioned that Hengan International's management aims to maintain a similar year-on-year level of sales in the second half of the year, balance sales growth with profitability, and plans to carry out targeted promotions to defend or increase market share. In the long run, the key is to explore the potential of overseas markets, and the Group will disclose relevant plans as soon as possible or in the second half of the year.

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