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Hengan International Group

SEHK:1044
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1044
SEHK
HK$75B
Market Cap
  1. Home
  2. HK
  3. Household
Company description

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. The last earnings update was 37 days ago. More info.


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1044 Share Price and Events
7 Day Returns
-4.8%
SEHK:1044
-2.9%
HK Personal Products
-2.5%
HK Market
1 Year Returns
-12.8%
SEHK:1044
-10.5%
HK Personal Products
-15.9%
HK Market
1044 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hengan International Group (1044) -4.8% -9.9% -0.2% -12.8% -4.3% -24%
HK Personal Products -2.9% -7% 0.4% -10.5% -9.3% -51.8%
HK Market -2.5% -8.6% -2.1% -15.9% 25.4% 7.8%
1 Year Return vs Industry and Market
  • 1044 underperformed the Personal Products industry which returned -10.5% over the past year.
  • 1044 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
1044
Industry
5yr Volatility vs Market

1044 Value

 Is Hengan International Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hengan International Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hengan International Group.

SEHK:1044 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1044
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Personal Products Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.677 (1 + (1- 25%) (36.77%))
0.908
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.908 * 5.96%)
7.42%

Discounted Cash Flow Calculation for SEHK:1044 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hengan International Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1044 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.42%)
2019 4,093.47 Analyst x12 3,810.84
2020 4,282.20 Analyst x11 3,711.29
2021 4,709.80 Analyst x9 3,800.05
2022 6,803.00 Analyst x1 5,109.95
2023 7,143.00 Analyst x1 4,994.88
2024 7,429.89 Est @ 4.02% 4,836.77
2025 7,683.42 Est @ 3.41% 4,656.47
2026 7,913.12 Est @ 2.99% 4,464.57
2027 8,126.26 Est @ 2.69% 4,268.26
2028 8,328.31 Est @ 2.49% 4,072.36
Present value of next 10 years cash flows CN¥43,725.45
SEHK:1044 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥8,328.31 × (1 + 2%) ÷ (7.42% – 2%)
CN¥156,924.50
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥156,924.50 ÷ (1 + 7.42%)10
CN¥76,732.65
SEHK:1044 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥43,725.45 + CN¥76,732.65
CN¥120,458.11
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥120,458.11 / 1,189.68
CN¥101.25
SEHK:1044 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1044)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥101.25 x 1.135
HK$114.9
Value per share (HKD) From above. HK$114.90
Current discount Discount to share price of HK$62.95
= -1 x (HK$62.95 - HK$114.90) / HK$114.90
45.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Hengan International Group is available for.
Intrinsic value
45%
Share price is HK$62.95 vs Future cash flow value of HK$114.9
Current Discount Checks
For Hengan International Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hengan International Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hengan International Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hengan International Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hengan International Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1044 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥3.15
SEHK:1044 Share Price ** SEHK (2019-05-17) in HKD HK$62.95
SEHK:1044 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥55.48
Hong Kong Personal Products Industry PE Ratio Median Figure of 9 Publicly-Listed Personal Products Companies 18.69x
Hong Kong Market PE Ratio Median Figure of 1,476 Publicly-Listed Companies 11.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hengan International Group.

SEHK:1044 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1044 Share Price ÷ EPS (both in CNY)

= 55.48 ÷ 3.15

17.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hengan International Group is good value based on earnings compared to the HK Personal Products industry average.
  • Hengan International Group is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Hengan International Group's expected growth come at a high price?
Raw Data
SEHK:1044 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
9.4%per year
Asia Personal Products Industry PEG Ratio Median Figure of 10 Publicly-Listed Personal Products Companies 2.07x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:1044 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.6x ÷ 9.4%

1.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hengan International Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hengan International Group's assets?
Raw Data
SEHK:1044 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥13.87
SEHK:1044 Share Price * SEHK (2019-05-17) in HKD HK$62.95
SEHK:1044 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥55.48
Hong Kong Personal Products Industry PB Ratio Median Figure of 16 Publicly-Listed Personal Products Companies 1.78x
Hong Kong Market PB Ratio Median Figure of 2,155 Publicly-Listed Companies 0.97x
SEHK:1044 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1044 Share Price ÷ Book Value per Share (both in CNY)

= 55.48 ÷ 13.87

4x

* Primary Listing of Hengan International Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hengan International Group is overvalued based on assets compared to the HK Personal Products industry average.
X
Value checks
We assess Hengan International Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. Hengan International Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1044 Future Performance

 How is Hengan International Group expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hengan International Group expected to grow at an attractive rate?
  • Hengan International Group's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Hengan International Group's earnings growth is positive but not above the Hong Kong market average.
  • Hengan International Group's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:1044 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:1044 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 9.4%
SEHK:1044 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 7.6%
Hong Kong Personal Products Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
Asia Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 8.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1044 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1044 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 25,785 5,702 5,043 14
2020-12-31 24,333 5,474 4,788 18
2019-12-31 22,693 5,090 4,378 17
SEHK:1044 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 20,514 3,962 3,800
2018-09-30 20,005 3,843
2018-06-30 21,242 3,846 3,887
2018-03-31 20,534 3,936 3,841
2017-12-31 18,080 4,026 3,794
2017-09-30 18,250 3,671
2017-06-30 18,420 3,810 3,549
2017-03-31 18,849 3,949 3,432
2016-12-31 19,277 4,087 3,315
2016-09-30 19,161 3,807 3,310
2016-06-30 19,044 3,527 3,304
2016-03-31 18,853 3,499 3,256

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hengan International Group's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
  • Hengan International Group's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1044 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Hengan International Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1044 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 4.32 4.92 3.92 11.00
2020-12-31 3.98 4.52 2.91 16.00
2019-12-31 3.65 3.90 3.03 17.00
SEHK:1044 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 3.15
2018-09-30 3.19
2018-06-30 3.22
2018-03-31 3.19
2017-12-31 3.15
2017-09-30 3.04
2017-06-30 2.94
2017-03-31 2.84
2016-12-31 2.73
2016-09-30 2.72
2016-06-30 2.71
2016-03-31 2.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hengan International Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Hengan International Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hengan International Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1044 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hengan International Group's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hengan International Group's year on year earnings growth rate has been positive over the past 5 years.
  • Hengan International Group's 1-year earnings growth is less than its 5-year average (0.2% vs 6%)
  • Hengan International Group's earnings growth has not exceeded the HK Personal Products industry average in the past year (0.2% vs 0.5%).
Earnings and Revenue History
Hengan International Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hengan International Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1044 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 20,513.88 3,799.81 3,468.32
2018-09-30 20,005.35 3,843.41 3,502.33
2018-06-30 21,242.28 3,887.01 5,296.26
2018-03-31 20,533.66 3,840.53 5,239.16
2017-12-31 18,079.56 3,794.04 3,422.13
2017-09-30 18,249.63 3,671.32 3,839.16
2017-06-30 18,419.70 3,548.61 4,256.18
2017-03-31 18,848.55 3,431.77 4,730.12
2016-12-31 19,277.40 3,314.93 5,204.05
2016-09-30 19,160.61 3,309.58 4,995.36
2016-06-30 19,043.83 3,304.23 4,786.67
2016-03-31 18,853.20 3,255.91 4,692.22
2015-12-31 18,662.58 3,207.59 4,597.78
2015-09-30 19,966.87 3,346.19 5,200.00
2015-06-30 18,580.06 3,235.62 4,895.07
2015-03-31 18,816.58 3,183.17 5,006.79
2014-12-31 19,060.30 3,131.94 5,120.43
2014-09-30 18,458.42 2,985.46 4,901.26
2014-06-30 18,349.50 2,918.54 4,812.79
2014-03-31 17,654.10 2,948.70 4,506.67
2013-12-31 16,542.01 2,905.33 4,097.63
2013-09-30 16,214.11 2,949.02 3,887.96
2013-06-30 15,757.05 2,970.70 3,645.45
2013-03-31 15,382.08 2,910.54 3,500.07
2012-12-31 14,897.60 2,829.82 3,328.84
2012-09-30 14,768.77 2,680.61 3,347.04
2012-06-30 14,671.36 2,534.71 3,373.27

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Hengan International Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Hengan International Group used its assets more efficiently than the HK Personal Products industry average last year based on Return on Assets.
  • Hengan International Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hengan International Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hengan International Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1044 Health

 How is Hengan International Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hengan International Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hengan International Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hengan International Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hengan International Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hengan International Group Company Filings, last reported 4 months ago.

SEHK:1044 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 16,998.68 24,269.58 21,785.23
2018-09-30 16,998.68 24,269.58 21,785.23
2018-06-30 17,007.71 18,137.05 17,895.51
2018-03-31 17,007.71 18,137.05 17,895.51
2017-12-31 16,344.30 19,085.41 18,605.81
2017-09-30 16,344.30 19,085.41 18,605.81
2017-06-30 15,473.55 19,887.86 18,415.55
2017-03-31 15,473.55 19,887.86 18,415.55
2016-12-31 14,760.86 15,917.10 14,952.00
2016-09-30 14,760.86 15,917.10 14,952.00
2016-06-30 14,136.01 11,672.87 11,016.98
2016-03-31 14,136.01 11,672.87 11,016.98
2015-12-31 15,091.80 14,355.23 14,944.70
2015-09-30 14,663.11 14,054.07 14,631.17
2015-06-30 14,951.66 16,323.93 17,551.97
2015-03-31 14,947.96 16,319.89 17,547.63
2014-12-31 14,447.17 16,439.99 17,183.93
2014-09-30 14,278.92 16,248.53 16,983.81
2014-06-30 13,613.63 17,959.46 18,165.44
2014-03-31 13,598.13 17,939.02 18,144.77
2013-12-31 13,209.85 15,162.61 15,422.18
2013-09-30 13,354.25 15,328.36 15,590.77
2013-06-30 12,484.64 15,677.78 16,112.63
2013-03-31 12,623.10 15,851.65 16,291.33
2012-12-31 11,587.42 9,029.64 7,842.56
2012-09-30 11,682.94 9,104.08 7,907.21
2012-06-30 10,898.78 7,418.66 5,924.52
  • Hengan International Group's level of debt (142.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (115% vs 142.8% today).
  • Debt is not well covered by operating cash flow (16.3%, less than 20% of total debt).
  • Hengan International Group earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Hengan International Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hengan International Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1044 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.97%
Current annual income from Hengan International Group dividends. Estimated to be 4.74% next year.
If you bought HK$2,000 of Hengan International Group shares you are expected to receive HK$79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hengan International Group's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Hengan International Group's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
Upcoming dividend payment

Purchase Hengan International Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1044 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Hong Kong Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.5%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1044 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.82 14.00
2020-12-31 2.66 18.00
2019-12-31 2.46 18.00
SEHK:1044 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-12 2.200 3.748
2019-03-19 2.200 3.728
2018-08-22 2.150 3.904
2018-04-12 2.100 3.491
2018-03-22 2.100 3.437
2017-08-24 2.050 3.256
2017-03-21 1.950 3.817
2016-03-22 1.747 3.240
2015-04-16 1.598 2.553
2015-03-24 1.598 2.107
2014-04-15 1.458 2.245
2014-03-25 1.478 2.272
2013-03-26 1.480 2.223
2012-04-18 1.081 1.802
2012-03-27 1.093 1.712
2011-04-19 1.135 2.055
2011-03-29 1.176 2.293
2010-09-10 1.009 1.825
2010-03-25 1.043 1.948
2009-09-11 0.878 1.906

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hengan International Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Hengan International Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hengan International Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hengan International Group has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1044 Management

 What is the CEO of Hengan International Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lin-Chit Hui
COMPENSATION CN¥1,288,000
AGE 65
CEO Bio

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 strategy planning and the overall management of Hengan International Group Company Limited. He has been a Non Independent Non-Executive Chairman and Non Independent Non-Executive of Wang-Zheng Berhad since September 25, 2017 and previously served as its Executive Director from June 15, 2017 to September 25, 2017. He has over 20 years' experience in trading, business management and development. Prior to engaging in the garment processing and exporting business, he managed a local transportation company. He serves as founding shareholder of Hengan Group and serves as Director of a number of its subsidiaries. He served as Chairman of Qinqin Foodstuffs Group (Cayman) Company Limited until April 12, 2017 and has been its Non-Executive Director since March 22, 2016. He serves as Non-Executive Director of Qinqing Foodstuffs Group (Cayman) Company. He serves as a Director of most of Qinqin Foodstuffs Group's subsidiaries. Mr. Hui has the title of senior economist in the PRC. He serves as Deputy Chairman of All-China General Chamber of Industry and Commerce, chairman of Fujian Province Industry and Trade Association, United Nations Maritime-Continental Silk Road Cities Alliance and the Jinjiang City Charity Federation. Mr. Hui serves as the Chairman of Quanzhou City Trade Association. He serves as Deputy Chairman of Political Consultative Conference in Quanzhou City. He served as Deputy Chairman of Fujian Province Industry and Trade Association. He served as a Deputy Chairman of All-China Federation of Industry and Commerce. He was also a Deputy Chairman of the Ninth, Tenth and Eleventh Political Consultative Conference in Quanzhou City and the Chairman of the Tenth, Eleventh, Twelfth and Thirteenth Quanzhou Federation of Industry and Commence. He received his formal education up to secondary school.

CEO Compensation
  • Lin-Chit's compensation has been consistent with company performance over the past year.
  • Lin-Chit's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Hengan International Group management team in years:

2.4
Average Tenure
51
Average Age
  • The tenure for the Hengan International Group management team is about average.
Management Team

Man Bok Sze

TITLE
Chairman of the Board
COMPENSATION
CN¥390K
AGE
68

Lin-Chit Hui

TITLE
Executive Deputy Chairman & CEO
COMPENSATION
CN¥1M
AGE
65

Da Xu

TITLE
CFO & Executive Director
COMPENSATION
CN¥793K
AGE
51
TENURE
2.5 yrs

Da Xu

TITLE
CFO & Executive Director
COMPENSATION
CN¥70K
AGE
51
TENURE
2.5 yrs

Shui Xu

TITLE
COO, CEO of Operation Service Centre
COMPENSATION
CN¥2M
AGE
49

Ching Hung

TITLE
Head of Purchasing Tender Assignments & Executive Director
COMPENSATION
CN¥204K
AGE
68

Ching Hui

TITLE
Director of Supply Chain Management & Executive Director
COMPENSATION
CN¥589K
AGE
33

Wong Sze

TITLE
Executive Director
COMPENSATION
CN¥55K
AGE
42

Fangsheng Zhou

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥104K
AGE
69
TENURE
2.3 yrs

Wai Li

TITLE
Deputy CFO
COMPENSATION
CN¥1M
AGE
40
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Hengan International Group board of directors in years:

8.9
Average Tenure
51
Average Age
  • The tenure for the Hengan International Group board of directors is about average.
Board of Directors

Man Bok Sze

TITLE
Chairman of the Board
COMPENSATION
CN¥390K
AGE
68

Lin-Chit Hui

TITLE
Executive Deputy Chairman & CEO
COMPENSATION
CN¥1M
AGE
65

Da Xu

TITLE
CFO & Executive Director
COMPENSATION
CN¥793K
AGE
51
TENURE
20.8 yrs

Da Xu

TITLE
CFO & Executive Director
COMPENSATION
CN¥70K
AGE
51
TENURE
20.8 yrs

Shui Xu

TITLE
COO, CEO of Operation Service Centre
COMPENSATION
CN¥2M
AGE
49
TENURE
8.9 yrs

Ching Hui

TITLE
Director of Supply Chain Management & Executive Director
COMPENSATION
CN¥589K
AGE
33
TENURE
8.9 yrs

Wong Sze

TITLE
Executive Director
COMPENSATION
CN¥55K
AGE
42
TENURE
8.9 yrs

Fangsheng Zhou

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥104K
AGE
69
TENURE
6.3 yrs

Wai Li

TITLE
Deputy CFO
COMPENSATION
CN¥1M
AGE
40
TENURE
2.2 yrs

Ada Wong

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥104K
AGE
58
TENURE
20.6 yrs
Who owns this company?
Recent Insider Trading
  • Hengan International Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
08. May 19 Sell Da Xu Individual 08. May 19 08. May 19 -4,582,942 HK$67.85 HK$-310,952,604
27. Apr 19 Sell Da Xu Individual 25. Apr 19 25. Apr 19 -300,000 HK$70.60 HK$-21,180,000
12. Apr 19 Sell Da Xu Individual 10. Apr 19 10. Apr 19 -800,000 HK$70.80 HK$-56,639,997
16. Apr 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 11. Apr 19 11. Apr 19 1,768,431 HK$70.05 HK$123,875,058
15. Apr 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 10. Apr 19 10. Apr 19 -732,122 HK$70.62 HK$-51,705,969
15. Apr 19 Buy J.P. Morgan Asset Management, Inc. Company 10. Apr 19 10. Apr 19 484,000 HK$70.62 HK$34,182,403
12. Apr 19 Buy J.P. Morgan Asset Management, Inc. Company 09. Apr 19 09. Apr 19 1,411,385 HK$70.69 HK$99,774,619
14. Dec 18 Buy Lin-Chit Hui Individual 14. Dec 18 14. Dec 18 1,000,000 HK$55.37 HK$55,374,000
13. Dec 18 Buy Man Bok Sze Individual 12. Dec 18 12. Dec 18 437,500 HK$56.28 HK$24,620,750
13. Dec 18 Buy Lin-Chit Hui Individual 13. Dec 18 13. Dec 18 2,000,000 HK$54.85 HK$109,701,999
13. Dec 18 Buy Man Bok Sze Individual 13. Dec 18 13. Dec 18 4,422,800 HK$54.98 HK$243,169,968
10. Dec 18 Buy Wong Sze Individual 07. Dec 18 07. Dec 18 700,000 HK$61.85 HK$43,295,001
17. Oct 18 Sell Capital Research and Management Company Company 15. Oct 18 15. Oct 18 -2,786,000 HK$63.10 HK$-175,790,461
11. Aug 18 Buy Capital Research and Management Company Company 09. Aug 18 09. Aug 18 485,000 HK$67.88 HK$32,921,122
21. Jul 18 Buy Wan Li Company Limited Company 20. Jul 18 20. Jul 18 50,000 HK$70.05 HK$3,502,500
X
Management checks
We assess Hengan International Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hengan International Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1044 News

Simply Wall St News

Hengan International Group Company Limited (HKG:1044) Insiders Increased Their Holdings

So before you buy or sell Hengan International Group Company Limited (HKG:1044), you may well want to know whether insiders have been buying or selling. … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' View our latest analysis for Hengan International Group The Last 12 Months Of Insider Transactions At Hengan International Group Over the last year, we can see that the biggest insider sale was by the CFO & Executive Director, Da Xu, for HK$311m worth of shares, at about HK$67.85 per share. … Insiders at Hengan International Group Have Sold Stock Recently Over the last three months, we've seen significant insider selling at Hengan International Group.

Simply Wall St -

Here's How We Evaluate Hengan International Group Company Limited's (HKG:1044) Dividend

Today we'll take a closer look at Hengan International Group Company Limited (HKG:1044) from a dividend investor's perspective. … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … In this case, Hengan International Group likely looks attractive to investors, given its 3.8% dividend yield and a payment history of over ten years.

Simply Wall St -

Is Hengan International Group Company Limited’s (HKG:1044) 23% ROCE Any Good?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Should We Be Delighted With Hengan International Group Company Limited's (HKG:1044) ROE Of 22%?

We'll use ROE to examine Hengan International Group Company Limited (HKG:1044), by way of a worked example. … Our data shows Hengan International Group has a return on equity of 22% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Should Investors Feel About Hengan International Group Company Limited's (HKG:1044) CEO Pay?

Lin-Chit Hui is the CEO of Hengan International Group Company Limited (HKG:1044). … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … At the time of writing our data says that Hengan International Group Company Limited has a market cap of HK$84b, and is paying total annual CEO compensation of CN¥1.3m.

Simply Wall St -

Don't Sell Hengan International Group Company Limited (HKG:1044) Before You Read This

We'll look at Hengan International Group Company Limited's (HKG:1044) P/E ratio and reflect on what it tells us about the company's share price. … Hengan International Group has a price to earnings ratio of 18.67, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

How Do Analysts See Hengan International Group Company Limited (HKG:1044) Performing In The Next Couple Of Years?

The latest earnings release Hengan International Group Company Limited's (HKG:1044) announced in December 2018a … company

Simply Wall St -

Does Hengan International Group Company Limited (HKG:1044) Generate Enough Cash?

Hengan International Group Company Limited (HKG:1044) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … I’ve analysed below, the health and outlook of Hengan International Group’s cash flow, which will help you understand the stock from a cash standpoint. … Hengan International Group generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating

Simply Wall St -

Should You Consider Hengan International Group Company Limited (HKG:1044)?

Hengan International Group Company Limited (HKG:1044) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … , dividend-paying company with a

Simply Wall St -

Is Hengan International Group Company Limited (HKG:1044) Expensive For A Reason? A Look At The Intrinsic Value

Help shape the future of investing tools and you could win a $250 gift card! … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

1044 Company Info

Description

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. The company offers box tissue papers, first-aid products, enema, skin care and cleansing products, baby skin care products, sanitary napkins and pantiliners, kitchen towels/papers, pocket handkerchiefs, preservation bags/paper, toilet rolls, adult and baby diapers, and wet tissues. It is also involved in the trading of various products for ladies, pregnant women, infants, and kids. The company was founded in 1985 and is headquartered in Jinjiang, the People’s Republic of China.

Details
Name: Hengan International Group Company Limited
1044
Exchange: SEHK
Founded: 1985
HK$74,890,193,400
1,189,677,417
Website: http://www.hengan.com
Address: Hengan International Group Company Limited
Hengan Industrial City,
Anhai Town,
Jinjiang,
Fujian Province, 362261,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1044 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 08. Dec 1998
OTCPK HEGI.F Ordinary Shares Pink Sheets LLC US USD 08. Dec 1998
DB HGNC Ordinary Shares Deutsche Boerse AG DE EUR 08. Dec 1998
SHSC 1044 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 08. Dec 1998
SZSC 1044 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 08. Dec 1998
OTCPK HEGI.Y UNSPONSORD ADR Pink Sheets LLC US USD 05. Nov 2008
Number of employees
Current staff
Staff numbers
23,000
Hengan International Group employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 12:40
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/04/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.