On July 17丨Citibank published a report stating that Hengan International's target price was lowered from HK$36.2 to HK$30.5 to maintain a neutral rating.

The bank estimates that Hengan's toilet paper business will maintain a strong momentum starting in FY2022, with related sales increasing 22% in the first half of 2023; toilet paper gross margin will drop to 18%. The reason is that the cost of pulp in the second quarter of 2023 increased by about 30% year-on-year, and price competition became more intense, and gross margin for diapers increased slightly to 36% year-on-year.

Citibank expects Hengan's sales, general and management expenses to increase by 15%, net profit to decrease by 11%, and core net profit to decrease by 21% in the first half of this year.