Zhongtong Finance APP learned that Citigroup released a research report stating that it maintains a neutral rating for amara (01044), and predicts that the revenue and profit space in the third quarter of this year will be relatively difficult, while the fourth quarter may see a recovery on the relatively low basis of last year. The short-term outlook is negative, the target price is slightly lowered from HKD 25.4 to HKD 25, and this year's net profit forecast is lowered by 9%, and the forecast for 2025 to 2026 is lowered by 1% respectively.

According to the report, the company's midterm net profit increased by 15% year-on-year, and the adjusted net profit after excluding exchange rate effects increased by 8%, which was lower than the bank's forecast, mainly due to a 3% decline in revenue and lower-than-expected growth in gross margin during the period. Citigroup attributed Hengan's mid-term performance falling short of expectations to a supply-demand imbalance in the tissue and sanitary napkin industries during the period, leading to intense price competition in the market. Looking ahead to the second half of this year, the management's goal is to improve the pace of revenue growth, but it still expects gross margin to be under pressure compared to the same period last year due to rising pulp costs. The company expects the gross margin of its tissue business to shrink year-on-year in the second half of the year.