Executive Summary
Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People’s Republic of China, Hong Kong, and internationally.
Snowflake
Fundamentals
Established dividend payer with mediocre balance sheet.
Similar Companies
Share Price & News
How has Hengan International Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-0.1%
1044
1.1%
HK Personal Products
0.3%
HK Market
1 Year Return
-19.3%
1044
-12.0%
HK Personal Products
1.3%
HK Market
Return vs Industry: 1044 underperformed the Hong Kong Personal Products industry which returned -12% over the past year.
Return vs Market: 1044 underperformed the Hong Kong Market which returned 1.3% over the past year.
Shareholder returns
| 1044 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.1% | 1.1% | 0.3% |
| 30 Day | -1.6% | -1.5% | 0.5% |
| 90 Day | -15.1% | -12.0% | -4.6% |
| 1 Year | -15.8%-19.3% | -8.9%-12.0% | 4.9%1.3% |
| 3 Year | -7.2%-17.5% | -10.6%-19.2% | 15.3%3.7% |
| 5 Year | -21.8%-35.0% | -28.3%-38.3% | 20.0%-0.006% |
Price Volatility Vs. Market
How volatile is Hengan International Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Here's Why Hengan International Group (HKG:1044) Can Manage Its Debt Responsibly2 weeks ago | Simply Wall St
Is Hengan International Group Company Limited (HKG:1044) Trading At A 39% Discount?3 weeks ago | Simply Wall St
Hengan International Group Company Limited (HKG:1044) Earns A Nice Return On Capital EmployedValuation
Is Hengan International Group undervalued compared to its fair value and its price relative to the market?
37.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1044 (HK$51.3) is trading below our estimate of fair value (HK$82.53)
Significantly Below Fair Value: 1044 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 1044 is poor value based on its PE Ratio (14.9x) compared to the Personal Products industry average (12.9x).
PE vs Market: 1044 is poor value based on its PE Ratio (14.9x) compared to the Hong Kong market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: 1044 is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: 1044 is overvalued based on its PB Ratio (3.2x) compared to the HK Personal Products industry average (1.4x).
Next Steps
Future Growth
How is Hengan International Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
8.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1044's forecast earnings growth (8.4% per year) is above the savings rate (2%).
Earnings vs Market: 1044's earnings (8.4% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).
High Growth Earnings: 1044's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1044's revenue (6.4% per year) is forecast to grow slower than the Hong Kong market (10% per year).
High Growth Revenue: 1044's revenue (6.4% 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 high in 3 years time (22.4%)
Next Steps
Past Performance
How has Hengan International Group performed over the past 5 years?
5.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 1044's earnings have grown by 5.4% 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 (-4%) over the past year, making it difficult to compare to the Personal Products industry average (9.3%).
Return on Equity
High ROE: Whilst 1044's Return on Equity (21.64%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: 1044 has a higher Return on Assets than the Personal Products industry average last year.
Return on Capital Employed
ROCE Improving: 1044's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Hengan International Group's financial position?
Financial Position Analysis
Short Term Liabilities: 1044's short term assets (CN¥30.3B) exceeds its short term liabilities (CN¥23.7B)
Long Term Liabilities: 1044's short term assets (30.3B) exceeds its long term liabilities (4.4B)
Debt to Equity History and Analysis
Debt Level: 1044's debt to equity ratio (139.5%) is considered high
Reducing Debt: 1044's debt to equity ratio has increased from 131.7% to 139.5% over the past 5 years.
Debt Coverage: 1044's debt is not well covered by operating cash flow (13.3%).
Interest Coverage: 1044 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 1044 has a high level of physical assets or inventory.
Debt Coverage by Assets: 1044's debt is covered by short term assets (assets are 1.257840x debt).
Next Steps
Dividend
What is Hengan International Group's current dividend yield, its reliability and sustainability?
4.75%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: 1044's dividend (4.75%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).
High Dividend: 1044's dividend (4.75%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.18%).
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 (70.6%), 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 (68.4% payout ratio).
Next Steps
Management
What is the CEO of Hengan International Group's salary, the management and board of directors tenure and is there insider trading?
2.8yrs
Average management tenure
CEO
Lin-Chit Hui (66yo)
0yrs
Tenure
CN¥1,165,000
Compensation
Mr. Lin Chit Hui serves as a Deputy Chairman and Chief Executive Officer of Hengan International Group Company Limited and has been its Executive Director since August 26, 1998. Mr. Hui is responsible for ...
CEO Compensation Analysis
Compensation vs. Market: Lin-Chit's total compensation ($USD164.62K) is about average for companies of similar size in the Hong Kong market ($USD582.48K).
Compensation vs Earnings: Lin-Chit's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.8yrs
Average Tenure
51yo
Average Age
Experienced Management: 1044's management team is considered experienced (2.8 years average tenure).
Board Age and Tenure
9.3yrs
Average Tenure
51yo
Average Age
Experienced Board: 1044'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
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 4,582,942 |
| Max Price | CN¥67.85 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 300,000 |
| Max Price | CN¥70.60 |
| Entity | Company |
| Shares | 1,768,431 |
| Max Price | CN¥70.05 |
| Entity | Company |
| Shares | 732,122 |
| Max Price | CN¥70.62 |
| Entity | Company |
| Shares | 484,000 |
| Max Price | CN¥70.62 |
| Entity | Company |
| Shares | 1,411,385 |
| Max Price | CN¥70.69 |
| Entity | Individual |
| Role | Member of the Board of Directors CFO & Executive Director |
| Shares | 800,000 |
| Max Price | CN¥70.80 |
| Entity | Individual |
| Role | Chief Executive Officer Executive Deputy Chairman & CEO |
| Shares | 1,000,000 |
| Max Price | CN¥55.37 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 437,500 |
| Max Price | CN¥56.28 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 4,422,800 |
| Max Price | CN¥54.98 |
| Entity | Individual |
| Role | Chief Executive Officer Executive Deputy Chairman & CEO |
| Shares | 2,000,000 |
| Max Price | CN¥54.85 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive Director |
| Shares | 700,000 |
| Max Price | CN¥61.85 |
Ownership Breakdown
Management Team
Da Xu (52yo)
CFO & Executive Director
- Tenure: 21.2yrs
- Compensation: CN¥710.00k
Man Bok Sze (69yo)
Chairman of the Board
- Tenure: 0yrs
- Compensation: CN¥367.00k
Ching Hung (69yo)
Head of Purchasing Tender Assignments & Executive Director
- Tenure: 0yrs
- Compensation: CN¥183.00k
Chun Xu (44yo)
Executive Director
- Tenure: 21.2yrs
Lin-Chit Hui (66yo)
Executive Deputy Chairman & CEO
- Tenure: 0yrs
- Compensation: CN¥1.17m
Shui Xu (50yo)
COO, CEO of Operation Service Centre
- Tenure: 9.3yrs
- Compensation: CN¥1.42m
Ching Chi Hui (34yo)
Operation Management Dept. Director
- Tenure: 9.3yrs
- Compensation: CN¥566.00k
Wong Sze (43yo)
Executive Director
- Tenure: 9.3yrs
Fangsheng Zhou (70yo)
Independent Non-Executive Director
- Tenure: 6.8yrs
- Compensation: CN¥102.00k
Wai Li (41yo)
Deputy CFO
- Tenure: 2.6yrs
- Compensation: CN¥1.27m
Board Members
Da Xu (52yo)
CFO & Executive Director
- Tenure: 21.2yrs
- Compensation: CN¥710.00k
Ada Wong (59yo)
Independent Non-Executive Director
- Tenure: 21yrs
- Compensation: CN¥102.00k
Man Bok Sze (69yo)
Chairman of the Board
- Tenure: 0yrs
- Compensation: CN¥367.00k
Chun Xu (44yo)
Executive Director
- Tenure: 21.2yrs
Lin-Chit Hui (66yo)
Executive Deputy Chairman & CEO
- Tenure: 0yrs
- Compensation: CN¥1.17m
Shui Xu (50yo)
COO, CEO of Operation Service Centre
- Tenure: 9.3yrs
- Compensation: CN¥1.42m
Ching Chi Hui (34yo)
Operation Management Dept. Director
- Tenure: 9.3yrs
- Compensation: CN¥566.00k
Wong Sze (43yo)
Executive Director
- Tenure: 9.3yrs
Fangsheng Zhou (70yo)
Independent Non-Executive Director
- Tenure: 6.8yrs
- Compensation: CN¥102.00k
Wai Li (41yo)
Deputy CFO
- Tenure: 2.6yrs
- Compensation: CN¥1.27m
Company Information
Hengan International Group Company Limited's company bio, 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$61.744b
- Shares outstanding: 1.19b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HEGI.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Dec 1998 |
| HGNC | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 1998 |
| 1044 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Dec 1998 |
| 1044 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Dec 1998 |
| 1044 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Dec 1998 |
| HEGI.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Nov 2008 |
Biography
Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People’s Republic of China, Hong Kong, and internationally. ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 12:37 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.