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1044

Hengan International GroupSEHK:1044 Stock Report

Market Cap

HK$47.9b

7D

-3.1%

1Y

-23.8%

Updated

25 Oct, 2021

Data

Company Financials +
1044 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends5/6

1044 Overview

Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People’s Republic of China and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Hengan International Group
Historical stock prices
Current Share PriceHK$41.20
52 Week HighHK$40.10
52 Week LowHK$59.30
Beta0.38
1 Month Change0.49%
3 Month Change-10.63%
1 Year Change-23.77%
3 Year Change-34.13%
5 Year Change-34.03%
Change since IPO294.64%

Recent News & Updates

Sep 09
Is There An Opportunity With Hengan International Group Company Limited's (HKG:1044) 45% Undervaluation?

Is There An Opportunity With Hengan International Group Company Limited's (HKG:1044) 45% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Hengan International Group Company Limited...

Aug 20
Hengan International Group's (HKG:1044) Shareholders Will Receive A Smaller Dividend Than Last Year

Hengan International Group's (HKG:1044) Shareholders Will Receive A Smaller Dividend Than Last Year

Hengan International Group Company Limited ( HKG:1044 ) has announced it will be reducing its dividend payable on the...

Shareholder Returns

1044HK Personal ProductsHK Market
7D-3.1%-1.5%0.4%
1Y-23.8%3.3%6.7%

Return vs Industry: 1044 underperformed the Hong Kong Personal Products industry which returned 3.2% over the past year.

Return vs Market: 1044 underperformed the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 1044's price volatile compared to industry and market?
1044 volatility
1044 Beta0.38
Industry Beta0.57
Market Beta1

Stable Share Price: 1044 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1044's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198523,000Ching Lau Huihttps://www.hengan.com

Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People’s Republic of China and internationally. The company offers pocket handkerchiefs, box and soft tissue papers, kitchen towels/papers, toilet rolls, first-aid products, enema, garbage and food bags, preservation papers, table cloths and swabbers, sanitary napkins, pantiliners, overnight pants, wet tissues, maternal and child care products, adult and baby diapers, and cleansing products. It is also involved in the trading of various products for ladies, pregnant women, infants, and kids, as well as disposable fiber-based products; and engages in the ecommerce business.

Hengan International Group Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
1044 income statement (TTM)
RevenueCN¥21.42b
Cost of RevenueCN¥12.85b
Gross ProfitCN¥8.57b
ExpensesCN¥4.38b
EarningsCN¥4.20b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.61
Gross Margin40.01%
Net Profit Margin19.59%
Debt/Equity Ratio121.0%

How did 1044 perform over the long term?

See historical performance and comparison

Dividends

6.7%

Current Dividend Yield

65%

Payout Ratio

Valuation

Is Hengan International Group 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: 1044 (HK$41.2) is trading below our estimate of fair value (HK$84.9)

Significantly Below Fair Value: 1044 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1044 is good value based on its PE Ratio (9.4x) compared to the Hong Kong Personal Products industry average (17x).

PE vs Market: 1044 is good value based on its PE Ratio (9.4x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1044 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 1044 is overvalued based on its PB Ratio (2x) compared to the HK Personal Products industry average (1x).


Future Growth

How is Hengan International Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1044's forecast earnings growth (5.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 1044's earnings (5.9% per year) are forecast to grow slower than the Hong Kong market (17.7% per year).

High Growth Earnings: 1044's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1044's revenue (5% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 1044's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1044's Return on Equity is forecast to be low in 3 years time (19.9%).


Past Performance

How has Hengan International Group performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1044 has high quality earnings.

Growing Profit Margin: 1044's current net profit margins (19.6%) are higher than last year (18.9%).


Past Earnings Growth Analysis

Earnings Trend: 1044's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: 1044's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1044 had negative earnings growth (-2.2%) over the past year, making it difficult to compare to the Personal Products industry average (-2.2%).


Return on Equity

High ROE: Whilst 1044's Return on Equity (21.49%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Hengan International Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1044's short term assets (CN¥32.0B) exceed its short term liabilities (CN¥25.3B).

Long Term Liabilities: 1044's short term assets (CN¥32.0B) exceed its long term liabilities (CN¥2.0B).


Debt to Equity History and Analysis

Debt Level: 1044's debt to equity ratio (121%) is considered high.

Reducing Debt: 1044's debt to equity ratio has increased from 82.9% to 121% over the past 5 years.

Debt Coverage: 1044's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: 1044 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Hengan International Group current dividend yield, its reliability and sustainability?

6.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1044's dividend (6.69%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 1044's dividend (6.69%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 1044's dividends per share have been stable in the past 10 years.

Growing Dividend: 1044's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65%), 1044's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1044's dividends in 3 years are forecast to be covered by earnings (72.9% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Ching Lau Hui (41 yo)

0.17

Tenure

CN¥3,000

Compensation

Mr. Hui Ching Lau has been an Executive Director of Hengan International Group Company Limited since December 10, 2020 and its Chief Executive Officer since August 18, 2021. He is responsible for providing...


Leadership Team

Experienced Management: 1044's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: 1044's board of directors are seasoned and experienced ( 17.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 1044 insiders have sold more shares than they have bought 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

Hengan International Group Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Hengan International Group Company Limited
  • Ticker: 1044
  • Exchange: SEHK
  • Founded: 1985
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: HK$47.879b
  • Shares outstanding: 1.16b
  • Website: https://www.hengan.com

Number of Employees


Location

  • Hengan International Group Company Limited
  • Hengan Industrial City
  • Anhai Town
  • Jinjiang
  • Fujian Province
  • 362261
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:41
End of Day Share Price2021/10/25 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.