| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 5/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | HK$41.20 |
| 52 Week High | HK$40.10 |
| 52 Week Low | HK$59.30 |
| Beta | 0.38 |
| 1 Month Change | 0.49% |
| 3 Month Change | -10.63% |
| 1 Year Change | -23.77% |
| 3 Year Change | -34.13% |
| 5 Year Change | -34.03% |
| Change since IPO | 294.64% |
Recent News & Updates
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...
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
| 1044 | HK Personal Products | HK 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
| 1044 volatility | |
|---|---|
| 1044 Beta | 0.38 |
| Industry Beta | 0.57 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1985 | 23,000 | Ching Lau Hui | https://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
| 1044 fundamental statistics | |
|---|---|
| Market Cap | CN¥39.33b |
| Earnings (TTM) | CN¥4.20b |
| Revenue (TTM) | CN¥21.42b |
9.4x
P/E Ratio1.8x
P/S RatioIs 1044 overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| 1044 income statement (TTM) | |
|---|---|
| Revenue | CN¥21.42b |
| Cost of Revenue | CN¥12.85b |
| Gross Profit | CN¥8.57b |
| Expenses | CN¥4.38b |
| Earnings | CN¥4.20b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.61 |
| Gross Margin | 40.01% |
| Net Profit Margin | 19.59% |
| Debt/Equity Ratio | 121.0% |
How did 1044 perform over the long term?
See historical performance and comparisonDividends
6.7%
Current Dividend Yield65%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/25 16:41 |
| End of Day Share Price | 2021/10/25 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.