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1112

Health and Happiness (H&H) International HoldingsSEHK:1112 Stock Report

Market Cap

HK$12.4b

7D

2.7%

1Y

-39.1%

Updated

23 Oct, 2021

Data

Company Financials +
1112 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends4/6

1112 Overview

Health and Happiness (H&H) International Holdings Limited, an investment holding company, manufactures and sells family nutrition and baby care products worldwide.

Health and Happiness (H&H) International Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Health and Happiness (H&H) International Holdings
Historical stock prices
Current Share PriceHK$19.18
52 Week HighHK$17.50
52 Week LowHK$40.20
Beta0.66
1 Month Change5.73%
3 Month Change-33.86%
1 Year Change-39.11%
3 Year Change-51.63%
5 Year Change0.63%
Change since IPO83.72%

Recent News & Updates

Sep 17
Returns On Capital At Health and Happiness (H&H) International Holdings (HKG:1112) Have Stalled

Returns On Capital At Health and Happiness (H&H) International Holdings (HKG:1112) Have Stalled

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Aug 26
Health and Happiness (H&H) International Holdings' (HKG:1112) Dividend Will Be Reduced To HK$0.37

Health and Happiness (H&H) International Holdings' (HKG:1112) Dividend Will Be Reduced To HK$0.37

Health and Happiness (H&H) International Holdings Limited's ( HKG:1112 ) dividend is being reduced to HK$0.37 on the...

Aug 25
We Think Health and Happiness (H&H) International Holdings (HKG:1112) Is Taking Some Risk With Its Debt

We Think Health and Happiness (H&H) International Holdings (HKG:1112) Is Taking Some Risk With Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

1112HK FoodHK Market
7D2.7%2.6%2.2%
1Y-39.1%-10.1%6.0%

Return vs Industry: 1112 underperformed the Hong Kong Food industry which returned -10.1% over the past year.

Return vs Market: 1112 underperformed the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 1112's price volatile compared to industry and market?
1112 volatility
1112 Beta0.66
Industry Beta0.52
Market Beta1

Stable Share Price: 1112 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1112's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19993,200Albertini Garnierhttps://www.hh.global

Health and Happiness (H&H) International Holdings Limited, an investment holding company, manufactures and sells family nutrition and baby care products worldwide. 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.

Health and Happiness (H&H) International Holdings Fundamentals Summary

How do Health and Happiness (H&H) International Holdings's earnings and revenue compare to its market cap?
1112 fundamental statistics
Market CapCN¥10.16b
Earnings (TTM)CN¥920.04m
Revenue (TTM)CN¥11.45b

11.0x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1112 income statement (TTM)
RevenueCN¥11.45b
Cost of RevenueCN¥4.27b
Gross ProfitCN¥7.18b
ExpensesCN¥6.26b
EarningsCN¥920.04m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.43
Gross Margin62.69%
Net Profit Margin8.03%
Debt/Equity Ratio99.4%

How did 1112 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

41%

Payout Ratio

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$19.18) is trading below our estimate of fair value (HK$62.07)

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 (11x) compared to the Hong Kong Food industry average (10.3x).

PE vs Market: 1112 is poor value based on its PE Ratio (11x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1112 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1112 is overvalued based on its PB Ratio (1.6x) compared to the HK Food industry average (0.9x).


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 13 analysts?

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1112's forecast earnings growth (19.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 1112's earnings (19.9% per year) are forecast to grow faster than the Hong Kong market (17.6% per year).

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

Revenue vs Market: 1112's revenue (10.3% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 1112's revenue (10.3% 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 low in 3 years time (18.6%).


Past Performance

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

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1112 has high quality earnings.

Growing Profit Margin: 1112's current net profit margins (8%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: 1112's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: 1112's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1112 had negative earnings growth (-8.9%) over the past year, making it difficult to compare to the Food industry average (13.9%).


Return on Equity

High ROE: 1112's Return on Equity (14.4%) is considered low.


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¥5.0B) exceed its short term liabilities (CN¥3.0B).

Long Term Liabilities: 1112's short term assets (CN¥5.0B) do not cover its long term liabilities (CN¥7.4B).


Debt to Equity History and Analysis

Debt Level: 1112's debt to equity ratio (99.4%) is considered high.

Reducing Debt: 1112's debt to equity ratio has reduced from 164.1% to 99.4% over the past 5 years.

Debt Coverage: 1112's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: 1112's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Dividend

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

3.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1112's dividend (3.86%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 1112's dividend (3.86%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 1112's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1112's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.5%), 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 (45.1% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Albertini Garnier (41 yo)

2.58yrs

Tenure

CN¥38,488,000

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 ($USD6.03M) is above average for companies of similar size in the Hong Kong market ($USD496.86K).

Compensation vs Earnings: Albertini's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 1112's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: 1112's board of directors are considered experienced (3.6 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.


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 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$12.375b
  • Shares outstanding: 645.20m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 10:03
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.