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1044

Hengan International Group SEHK:1044 Stock Report

Last Price

HK$36.85

Market Cap

HK$43.1b

7D

1.4%

1Y

-29.1%

Updated

30 Jun, 2022

Data

Company Financials +
1044 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

1044 Stock 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.

Hengan International Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hengan International Group
Historical stock prices
Current Share PriceHK$36.85
52 Week HighHK$53.75
52 Week LowHK$34.40
Beta0.40
1 Month Change-5.39%
3 Month Change-1.34%
1 Year Change-29.14%
3 Year Change-37.22%
5 Year Change-38.38%
Change since IPO252.97%

Recent News & Updates

May 23
Hengan International Group (HKG:1044) Is Paying Out Less In Dividends Than Last Year

Hengan International Group (HKG:1044) Is Paying Out Less In Dividends Than Last Year

Hengan International Group Company Limited ( HKG:1044 ) is reducing its dividend to HK$0.86 on the 6th of June...

Apr 27
Hengan International Group's (HKG:1044) Dividend Will Be Reduced To HK$0.86

Hengan International Group's (HKG:1044) Dividend Will Be Reduced To HK$0.86

Hengan International Group Company Limited's ( HKG:1044 ) dividend is being reduced to HK$0.86 on the 6th of June. The...

Apr 21
Is Hengan International Group Company Limited (HKG:1044) Trading At A 24% Discount?

Is Hengan International Group Company Limited (HKG:1044) Trading At A 24% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Hengan International...

Shareholder Returns

1044HK Personal ProductsHK Market
7D1.4%6.9%3.1%
1Y-29.1%-20.0%-21.2%

Return vs Industry: 1044 underperformed the Hong Kong Personal Products industry which returned -20% over the past year.

Return vs Market: 1044 underperformed the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 1044's price volatile compared to industry and market?
1044 volatility
1044 Average Weekly Movement3.4%
Personal Products Industry Average Movement6.5%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

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

Volatility Over Time: 1044's weekly volatility (3%) 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

How do Hengan International Group's earnings and revenue compare to its market cap?
1044 fundamental statistics
Market CapCN¥36.82b
Earnings (TTM)CN¥3.27b
Revenue (TTM)CN¥20.79b

11.2x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1044 income statement (TTM)
RevenueCN¥20.79b
Cost of RevenueCN¥13.02b
Gross ProfitCN¥7.77b
Other ExpensesCN¥4.50b
EarningsCN¥3.27b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.82
Gross Margin37.38%
Net Profit Margin15.75%
Debt/Equity Ratio94.5%

How did 1044 perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

61%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1044 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1044?

Other financial metrics that can be useful for relative valuation.

1044 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA8.1x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

How does 1044's PE Ratio compare to its peers?

1044 PE Ratio vs Peers
The above table shows the PE ratio for 1044 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.3x
973 L'Occitane International
19x11.6%HK$38.0b
6896 Golden Throat Holdings Group
6.9xn/aHK$1.5b
157 Natural Beauty Bio-Technology
30.7xn/aHK$1.1b
1962 Evergreen Products Group
12.7xn/aHK$686.1m
1044 Hengan International Group
11.3x4.9%HK$43.1b

Price-To-Earnings vs Peers: 1044 is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (17.3x).


Price to Earnings Ratio vs Industry

How does 1044's PE Ratio compare vs other companies in the Asian Personal Products Industry?

Price-To-Earnings vs Industry: 1044 is good value based on its Price-To-Earnings Ratio (11.2x) compared to the Hong Kong Personal Products industry average (12x)


Price to Earnings Ratio vs Fair Ratio

What is 1044's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1044 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.2x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: 1044 is good value based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).


Share Price vs Fair Value

What is the Fair Price of 1044 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1044 (HK$36.85) is trading below our estimate of fair value (HK$53.39)

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


Price to Earnings Growth Ratio

PEG Ratio: 1044 is poor value based on its PEG Ratio (2.3x)


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Future Growth

How is Hengan International Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1044's forecast earnings growth (4.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1044's earnings (4.9% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

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

Revenue vs Market: 1044's revenue (3.9% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 1044's revenue (3.9% 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 (18.7%).


Discover growth companies

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1044 has high quality earnings.

Growing Profit Margin: 1044's current net profit margins (15.7%) are lower than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: 1044's earnings have grown by 3.1% 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 (-28.8%) over the past year, making it difficult to compare to the Personal Products industry average (2.7%).


Return on Equity

High ROE: 1044's Return on Equity (17.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Hengan International Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1044's short term assets (CN¥27.3B) exceed its short term liabilities (CN¥22.0B).

Long Term Liabilities: 1044's short term assets (CN¥27.3B) exceed its long term liabilities (CN¥974.8M).


Debt to Equity History and Analysis

Debt Level: 1044 has more cash than its total debt.

Reducing Debt: 1044's debt to equity ratio has reduced from 108.1% to 94.5% over the past 5 years.

Debt Coverage: 1044's debt is well covered by operating cash flow (25.3%).

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


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.30%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1044's dividend (5.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.71%).

High Dividend: 1044's dividend (5.3%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.74%).


Stability and Growth of Payments

Stable Dividend: 1044's dividend payments have been volatile in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (61%), 1044's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (50.8%), 1044's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

5.6yrs

Average management tenure


CEO

Ching Lau Hui (41 yo)

0.83

Tenure

CN¥4,428,000

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...


CEO Compensation Analysis

Compensation vs Market: Ching Lau's total compensation ($USD660.82K) is about average for companies of similar size in the Hong Kong market ($USD582.70K).

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


Leadership Team

Experienced Management: 1044's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: 1044's board of directors are seasoned and experienced ( 23.7 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

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
  • Implied Market Cap: HK$43.115b
  • 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 Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.