SEHK:1112

Stock Analysis Report

Health and Happiness (H&H) International Holdings

Executive Summary

Health and Happiness (H&H) International Holdings Limited, an investment holding company, manufactures and sells family nutrition and baby care products in Mainland China, Australia, New Zealand, and internationally.


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Health and Happiness (H&H) International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1112's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.3%

1112

5.7%

HK Food

4.0%

HK Market


1 Year Return

-43.5%

1112

-10.3%

HK Food

-20.1%

HK Market

Return vs Industry: 1112 underperformed the Hong Kong Food industry which returned -10.3% over the past year.

Return vs Market: 1112 underperformed the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

1112IndustryMarket
7 Day12.3%5.7%4.0%
30 Day-20.0%-5.9%-11.3%
90 Day-12.7%-5.9%-15.6%
1 Year-42.9%-43.5%-7.9%-10.3%-17.2%-20.1%
3 Year8.6%7.4%30.3%20.7%-2.9%-12.7%
5 Year-14.7%-16.7%3.1%-7.1%-6.8%-21.8%

Price Volatility Vs. Market

How volatile is Health and Happiness (H&H) International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Health and Happiness (H&H) International Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1112 (HK$27.75) is trading below our estimate of fair value (HK$60.36)

Significantly Below Fair Value: 1112 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1112 is poor value based on its PE Ratio (16.2x) compared to the Food industry average (11.3x).

PE vs Market: 1112 is poor value based on its PE Ratio (16.2x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 1112 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 1112 is overvalued based on its PB Ratio (2.9x) compared to the HK Food industry average (0.7x).


Next Steps

Future Growth

How is Health and Happiness (H&H) International Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1112's forecast earnings growth (16.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 1112's earnings (16.5% per year) are forecast to grow faster than the Hong Kong market (12.8% per year).

High Growth Earnings: 1112's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1112's revenue (9.8% per year) is forecast to grow faster than the Hong Kong market (9.1% per year).

High Growth Revenue: 1112's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1112's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

How has Health and Happiness (H&H) International Holdings performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1112 has high quality earnings.

Growing Profit Margin: 1112's current net profit margins (9.2%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 1112's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: 1112's earnings growth over the past year (19.2%) exceeds its 5-year average (14.9% per year).

Earnings vs Industry: 1112 earnings growth over the past year (19.2%) exceeded the Food industry 6.4%.


Return on Equity

High ROE: 1112's Return on Equity (18%) is considered low.


Next Steps

Financial Health

How is Health and Happiness (H&H) International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1112's short term assets (CN¥5.2B) exceed its short term liabilities (CN¥3.2B).

Long Term Liabilities: 1112's short term assets (CN¥5.2B) do not cover its long term liabilities (CN¥7.1B).


Debt to Equity History and Analysis

Debt Level: 1112's debt to equity ratio (105.1%) is considered high.

Reducing Debt: 1112's debt to equity ratio has increased from 82.7% to 105.1% over the past 5 years.

Debt Coverage: 1112's debt is well covered by operating cash flow (24.3%).

Interest Coverage: 1112's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: 1112 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1112's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Health and Happiness (H&H) International Holdings's current dividend yield, its reliability and sustainability?

3.05%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateMay 12 2020Dividend Pay DateJul 08 202057 days from Ex DividendBuy in the next 44 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1112's dividend (3.05%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 1112's dividend (3.05%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 1112 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1112's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), 1112's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1112's dividends in 3 years are forecast to be well covered by earnings (48.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Albertini Garnier (39yo)

1

Tenure

CN¥8,269,000

Compensation

Mrs. Laetitia Marie Edmee Jehanne E. P. Garnier, also known as Albertini has been the Chief Executive Officer of Health and Happiness (H&H) International Holdings Ltd since March 19, 2019 and has been its  ...


CEO Compensation Analysis

Compensation vs Market: Albertini's total compensation ($USD1.17M) is above average for companies of similar size in the Hong Kong market ($USD446.01K).

Compensation vs Earnings: Insufficient data to compare Albertini's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Fei Luo
Chairman of the Boardno dataCN¥14.25m0.18% CN¥32.9m
Laetitia Marie Edmee Jehanne E. P. Garnier
CEO & Executive Director1yrCN¥8.27m0.046% CN¥8.1m
Yidong Wang
CFO & Executive Director2.08yrsCN¥8.04m0.017% CN¥3.0m
Abel Benzakour
Chief Operating Officer2.92yrsno datano data
Patrice Malard
CTO & Chief Scientific Officer7.75yrsno datano data
Qizhang Zhang
GM of the New Business Development Department & Acting Chief People Officer2.75yrsno datano data
Oliver Horn
Managing Director of H&H Group ANZ and North America3.17yrsno datano data
Charles Ravel
Managing Director of BNC International Division3.17yrsno datano data
Wenyun Yang
Director of the Listing Affairs & Risk Management and Company Secretary9.67yrsno datano data
Dingping Zhu
China Managing Director of Baby Nutrition & Care4.42yrsno datano data

3.2yrs

Average Tenure

44yo

Average Age

Experienced Management: 1112's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fei Luo
Chairman of the Boardno dataCN¥14.25m0.18% CN¥32.9m
Laetitia Marie Edmee Jehanne E. P. Garnier
CEO & Executive Director1yrCN¥8.27m0.046% CN¥8.1m
Yidong Wang
CFO & Executive Director2.08yrsCN¥8.04m0.017% CN¥3.0m
Wai Fung Ngai
Independent Non-Executive Director9.67yrsCN¥890.00k0.025% CN¥4.4m
Wee Seng Tan
Independent Non-Executive Director9.67yrsCN¥890.00k0.0093% CN¥1.7m
Wenhui Zhang
Non-Executive Director9.83yrsCN¥120.00kno data
Baichun Xiao
Independent Non-Executive Director9.67yrsCN¥890.00k0.0093% CN¥1.7m
Yun Luo
Non-Executive Director9.83yrsCN¥120.00kno data
Can Wang
Independent Non-Executive Directorno datano datano data
Lau Yin Ching Lok
Independent Non-Executive Directorno datano datano data

9.7yrs

Average Tenure

56yo

Average Age

Experienced Board: 1112's board of directors are considered experienced (9.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Health and Happiness (H&H) International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Health and Happiness (H&H) International Holdings Limited
  • Ticker: 1112
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$17.860b
  • Shares outstanding: 643.59m
  • Website: https://www.hh.global

Number of Employees


Location

  • Health and Happiness (H&H) International Holdings Limited
  • One Island East
  • Suites 4007-09, 40th Floor
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1112SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2010
8BIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010
BTSD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2010
1112SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2010
1112SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2010

Biography

Health and Happiness (H&H) International Holdings Limited, an investment holding company, manufactures and sells family nutrition and baby care products in Mainland China, Australia, New Zealand, and internationally. The company’s Infant Formulas segment produces infant formulas for children under seven years old and milk formulas for expectant and nursing mothers. Its Probiotic Supplements segment offers probiotic supplements in the form of sachets, capsules, and tablets for infants, children and expectant mothers. The company’s Adult Nutrition and Care Products segment provides vitamins, health supplements, and skin care and sports nutrition products for adults. Its Other Pediatric Products segment produces dried baby food and nutrition supplements, and baby care products. The company is also involved in the research, development, and processing of meat, fruit, and vegetable powder and candy; research, development, manufacture, and sale of health products and nutritional foods; sale of nutritional food, milk formulas, and personal care products for infants and adults; and wholesale, retail, import, and export of personal care products for infants. In addition, it engages in the manufacture of organic baby foods and baby care products; trading of infant food and nutritional products; early childhood education advisory business; financing and other businesses; and provision of online sales, software, and information technology services, as well as packaging, and digital media and advertising services. The company offers its products under the Biostime, Swisse, Healthy Times, and Dodie brands. The company was formerly known as Biostime International Holdings Limited and changed its name to Health and Happiness (H&H) International Holdings Limited in June 2017. The company was founded in 1999 and is headquartered in Quarry Bay, Hong Kong. Health and Happiness (H&H) International Holdings Limited is a subsidiary of Biostime Pharmaceuticals (China) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:09
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.