Jefferies has released a research report stating that Hengan International's (01044) first-half net profit exceeded both the firm's and market expectations by 4%, primarily due to higher-than-anticipated other income. However, sales fell short of the firm's and market forecasts by 1% and 5%, respectively.

Due to lowered sales projections for Hengan International, the firm has also reduced its net profit forecasts for 2026 to 2028 by 4%, 5%, and 6%, respectively. Jefferies maintains a 'Hold' rating on the stock, but has lowered the target price from HK$25.2 to HK$23.9.

The report mentions that management at Hengan International aims to keep sales in the second half of the year at a level similar to the same period last year, while balancing sales growth with profitability. The company plans to implement targeted promotions to defend or enhance its market share. In the long term, the key lies in exploring overseas market potential, with the group potentially disclosing relevant plans as early as the second half of the year.