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

Fundamentals

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


Market Performance


7 Day Return

-7.1%

1112

0.7%

HK Food

0.8%

HK Market


1 Year Return

-20.2%

1112

15.9%

HK Food

0.5%

HK Market

Return vs Industry: 1112 underperformed the Hong Kong Food industry which returned 15.9% over the past year.

Return vs Market: 1112 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

1112IndustryMarket
7 Day-7.1%0.7%0.8%
30 Day-12.6%0.3%-0.5%
90 Day-30.6%-5.4%-5.6%
1 Year-19.3%-20.2%19.1%15.9%4.1%0.5%
3 Year55.2%53.4%41.7%31.2%15.5%3.9%
5 Year48.5%45.0%4.9%-5.5%19.9%-0.2%

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

Undervalued: 1112 (HK$29.95) is trading below our estimate of fair value (HK$69.86)

Significantly Undervalued: 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 (14.7x) compared to the Food industry average (14.5x).

PE vs Market: 1112 is poor value based on its PE Ratio (14.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 1112 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1112 is overvalued based on its PB Ratio (3.3x) compared to the HK Food industry average (0.8x).


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 11 analysts?

18.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1112's forecast earnings growth (18.8% per year) is above the savings rate (2%).

Earnings vs Market: 1112's earnings (18.8% per year) are forecast to grow faster than the Hong Kong market (11.4% per year).

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

Revenue vs Market: 1112's revenue (13.7% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1112's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1112's Return on Equity is forecast to be high in 3 years time (24.3%)


Next Steps

Past Performance

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

11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1112's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: 1112's earnings growth over the past year (27.9%) exceeds its 5-year average (11.5% per year).

Earnings vs Industry: 1112 earnings growth over the past year (27.9%) exceeded the Food industry 4.4%.


Return on Equity

High ROE: Whilst 1112's Return on Equity (22.38%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: 1112 has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: 1112 has significantly improved its Return on Capital Employed over the past 3 years.


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¥5.0B) exceeds its short term liabilities (CN¥3.3B)

Long Term Liabilities: 1112's short term assets (5.0B) do not cover its long term liabilities (7.0B)


Debt to Equity History and Analysis

Debt Level: 1112's debt to equity ratio (115.7%) is considered high

Reducing Debt: 1112's debt to equity ratio has increased from 114.5% to 115.7% over the past 5 years.

Debt Coverage: 1112's debt is well covered by operating cash flow (23.5%).

Interest Coverage: 1112's interest payments on its debt are well covered by EBIT (6x 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 0.8x debt).


Next Steps

Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%2.3%markettop25%6.3%industryaverage2.4%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1112's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1112's dividend (1.51%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

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 low payout ratio (23%), 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 (25.6% payout ratio).


Next Steps

Management

What is the CEO of Health and Happiness (H&H) International Holdings's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Albertini Garnier (39yo)

0.6yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Hong Kong market.

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


Management Age and Tenure

2.8yrs

Average Tenure

44yo

Average Age

Experienced Management: 1112's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

56yo

Average Age

Experienced Board: 1112's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCN¥13,723,43018 Jun 19
Franklin Resources, Inc.
EntityCompany
Shares324,500
Max PriceCN¥42.29

Ownership Breakdown


Management Team

  • Patrice Malard (65yo)

    CTO & Chief Scientific Officer

    • Tenure: 7.3yrs
  • Albertini Garnier (39yo)

    CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥8.27m
  • Dingping Zhu (43yo)

    China Managing Director of Baby Nutrition & Care

    • Tenure: 4yrs
  • Fei Luo (55yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥14.25m
  • Wenyun Yang (35yo)

    Director of the Listing Affairs & Risk Management and Company Secretary

    • Tenure: 9.3yrs
  • Qizhang Zhang (35yo)

    GM of the New Business Development Department & Acting Chief People Officer

    • Tenure: 2.3yrs
  • Yidong Wang (45yo)

    CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥8.04m
  • Oliver Horn (47yo)

    Managing Director of H&H Group ANZ and North America

    • Tenure: 2.8yrs
  • Abel Benzakour (55yo)

    Chief Operating Officer

    • Tenure: 2.5yrs
  • Charles Ravel (43yo)

    Managing Director of BNC International Division

    • Tenure: 2.8yrs

Board Members

  • Maurice Ngai (57yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥890.00k
  • Wee Seng Tan (63yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥890.00k
  • Wenhui Zhang (54yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥120.00k
  • Baichun Xiao (71yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: CN¥890.00k
  • Yun Luo (58yo)

    Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: CN¥120.00k
  • Albertini Garnier (39yo)

    CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥8.27m
  • Fei Luo (55yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: CN¥14.25m
  • Yidong Wang (45yo)

    CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: CN¥8.04m

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$19.449b
  • Shares outstanding: 641.90m
  • 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 inter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:47
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.