SEHK:1044

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Hengan International Group

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 and internationally. More Details


Snowflake Analysis

Established dividend payer with proven track record.


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

Stable Share Price: 1044's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.4%

1044

-1.9%

HK Personal Products

0.04%

HK Market


1 Year Return

-3.8%

1044

-8.1%

HK Personal Products

0.3%

HK Market

Return vs Industry: 1044 exceeded the Hong Kong Personal Products industry which returned -8.1% over the past year.

Return vs Market: 1044 underperformed the Hong Kong Market which returned 0.3% over the past year.


Shareholder returns

1044IndustryMarket
7 Day-4.4%-1.9%0.04%
30 Day-5.0%-1.0%6.1%
90 Day-19.9%-12.7%1.0%
1 Year0.6%-3.8%-4.8%-8.1%4.5%0.3%
3 Year-23.7%-32.7%-20.9%-28.7%-5.8%-16.1%
5 Year-23.9%-38.0%-25.2%-37.0%18.1%-1.9%

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

Valuation

Is Hengan International Group undervalued compared to its fair value and its price relative to the market?

14.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1044 (HK$52.55) is trading below our estimate of fair value (HK$61.33)

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 good value based on its PE Ratio (12.6x) compared to the HK Personal Products industry average (13.2x).

PE vs Market: 1044 is poor value based on its PE Ratio (12.6x) compared to the Hong Kong market (11x).


Price to Earnings Growth Ratio

PEG Ratio: 1044 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 1044 is overvalued based on its PB Ratio (2.9x) compared to the HK Personal Products industry average (1.1x).


Next Steps

Future Growth

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

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1044's forecast earnings growth (5% per year) is above the savings rate (1.6%).

Earnings vs Market: 1044's earnings (5% per year) are forecast to grow slower than the Hong Kong market (22.2% per year).

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

Revenue vs Market: 1044's revenue (6.2% per year) is forecast to grow slower than the Hong Kong market (13.2% per year).

High Growth Revenue: 1044's revenue (6.2% 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 (22.6%)


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1044 has high quality earnings.

Growing Profit Margin: 1044's current net profit margins (18.9%) are higher than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: 1044's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: 1044's earnings growth over the past year (14.9%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: 1044 earnings growth over the past year (14.9%) underperformed the Personal Products industry 14.9%.


Return on Equity

High ROE: Whilst 1044's Return on Equity (22.7%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Hengan International Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1044's short term assets (CN¥38.0B) exceed its short term liabilities (CN¥30.9B).

Long Term Liabilities: 1044's short term assets (CN¥38.0B) exceed its long term liabilities (CN¥2.8B).


Debt to Equity History and Analysis

Debt Level: 1044's debt to equity ratio (155.6%) is considered high.

Reducing Debt: 1044's debt to equity ratio has increased from 108.9% to 155.6% over the past 5 years.

Debt Coverage: 1044's debt is not well covered by operating cash flow (18.7%).

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


Balance Sheet


Next Steps

Dividend

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

4.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1044's dividend (4.95%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1044's dividend (4.95%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.9%).


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 (68%), 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 (75.5% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Lin Chit Hui (67 yo)

no data

Tenure

CN¥1,937,000

Compensation

Mr. Lin Chit Hui (formerly known as Hui Chi Lin) serves as a Deputy Chairman and Chief Executive Officer of Hengan International Group Company Limited and has been its Executive Director since August 26, 1 ...


CEO Compensation Analysis

Compensation vs Market: Lin Chit's total compensation ($USD288.87K) is below average for companies of similar size in the Hong Kong market ($USD589.25K).

Compensation vs Earnings: Lin Chit's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Man Bok Sze
Executive Chairman of the Boardno dataCN¥403.00k20.04%
CN¥ 12.9b
Lin Chit Hui
Executive Deputy Chairman & CEOno dataCN¥1.94m22.32%
CN¥ 14.3b
Da Xu
CEO of Capital Operation & Investment Management Department and Executive Director22.17yrsCN¥1.38m0.97%
CN¥ 623.7m
Chun Xu
Executive Director22.17yrsCN¥56.00kno data
Wai Leung Li
CFO, Company Secretary & Executive Director3.58yrsCN¥1.45mno data
Shui Xu
COO, CEO of Operation Service Centre10.33yrsCN¥1.43m0.0028%
CN¥ 1.8m
Ching Hung
Head of Purchasing Tender Assignments & Executive Director22.17yrsCN¥186.00k0.0042%
CN¥ 2.7m
Ching Chi Hui
Operation Management Dept. Director10.33yrsCN¥1.13m0.0034%
CN¥ 2.2m
Wong Sze
Executive Director10.33yrsCN¥56.00k0.072%
CN¥ 46.0m
Ying Liu
Deputy Chief Executive Officer of Services Sharing Center4.08yrsno datano data
Xiang Wang
Chief Executive Officer of Purchase and Trade Departmentno datano datano data
Cheng Chung Chu
Chief Business Consultantno dataCN¥120.00kno data

3.9yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 1044's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Man Bok Sze
Executive Chairman of the Boardno dataCN¥403.00k20.04%
CN¥ 12.9b
Lin Chit Hui
Executive Deputy Chairman & CEOno dataCN¥1.94m22.32%
CN¥ 14.3b
Da Xu
CEO of Capital Operation & Investment Management Department and Executive Director22.17yrsCN¥1.38m0.97%
CN¥ 623.7m
Chun Xu
Executive Director22.17yrsCN¥56.00kno data
Wai Leung Li
CFO, Company Secretary & Executive Director3.58yrsCN¥1.45mno data
Shui Xu
COO, CEO of Operation Service Centre10.33yrsCN¥1.43m0.0028%
CN¥ 1.8m
Ching Hung
Head of Purchasing Tender Assignments & Executive Director22.17yrsCN¥186.00k0.0042%
CN¥ 2.7m
Ching Chi Hui
Operation Management Dept. Director10.33yrsCN¥1.13m0.0034%
CN¥ 2.2m
Wong Sze
Executive Director10.33yrsCN¥56.00k0.072%
CN¥ 46.0m
Ying Kay Wong
Independent Non-Executive Director22yrsCN¥106.00kno data
Henry Chan
Independent Non-Executive Director22yrsCN¥106.00kno data
Kwai Ching Ho
Independent Non-Executive Director7.75yrsCN¥106.00kno data

16.2yrs

Average Tenure

53.5yo

Average Age

Experienced Board: 1044's board of directors are seasoned and experienced ( 16.2 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 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$64.303b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEGI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1998
HGNCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1998
1044SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 1998
1044SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 1998
1044SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 1998
HEGI.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 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 and internationally. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 12:34
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.