Hengan International Group Co (1044) AI Stock Analysis

• Market Cap: $25.51B
• Dividend Yield: 8.23%
• Average Volume (3M): 2.62M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.77
• Revenue Growth: -6.53%
• EPS Growth: -18.43%
• Country: HK
• Employees: 24,000
• Sector: Consumer Defensive
• Sector Strength: 62
• Industry: Household & Personal Products
• EPS (TTM): 0.85
• Shares Outstanding: 1,162,121,000
• 10 Day Avg. Volume: 2,880,109
• 30 Day Avg. Volume: 2,620,601
• PEG Ratio: -0.55
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.02
• Price Target Upside: 27.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$24.50 ▲(11.87%Upside)

Hengan International Group Co exhibits strong valuation with an attractive P/E ratio and high dividend yield, making it an appealing investment. Its solid financial performance, with strong profitability and a robust balance sheet, is a strength, although challenges in revenue growth and free cash flow generation persist. Technical indicators show positive momentum but suggest caution due to overbought conditions. Overall, the stock is well-positioned, but investors should monitor cash flow improvements and revenue growth efforts.

Hengan International Group Co Business Overview & Revenue Model

Company Description

Hengan International Group Co. Ltd. (1044) is a leading manufacturer and distributor of personal hygiene products in China. The company operates in sectors such as sanitary napkins, disposable diapers, tissue paper, and other related products. Hengan International has established itself as a trusted brand in the personal care industry, offering a wide range of products to meet various consumer needs.

How the Company Makes Money

Hengan International Group Co. generates revenue through the sale of its personal hygiene products, including sanitary napkins, disposable diapers, and tissue paper. The company leverages its strong brand presence and extensive distribution network across China and international markets to reach a broad customer base. Key revenue streams include the retail and wholesale distribution of its products through supermarkets, convenience stores, and online platforms. Strategic partnerships with retailers and continuous investment in marketing and product innovation also contribute to its earnings. Additionally, the company focuses on expanding its product portfolio and increasing market penetration to drive growth and maintain its competitive edge.

Hengan International Group Co Financial Statement Overview

Summary

Hengan International Group Co shows solid profitability and a strong balance sheet with reduced leverage. However, revenue growth and free cash flow generation have faced headwinds, impacting overall performance. The company's ability to maintain profitability margins amidst revenue pressures and its strong equity position remain key strengths. Continued focus on improving cash flow and revenue growth will be crucial for future performance.

Income Statement

The company's gross profit margin for 2024 was approximately 32.30%, which shows a slight decline from 2023's 33.71%. The net profit margin also dropped to 10.14% from 11.78% the previous year. Revenue decreased by 4.63% in 2024, indicating challenges in maintaining growth. However, EBIT and EBITDA margins were relatively stable at 14.79% and 19.56% respectively, though slightly lower than 2023. The overall income statement reflects consistent profitability but challenges in revenue growth.

Balance Sheet

The debt-to-equity ratio improved to 0.63 from 0.70, indicating reduced leverage. The return on equity (ROE) was 10.99% in 2024, down from 13.73% in 2023, due to lower net income. The equity ratio stood at 52.55%, an improvement from 50.70%, showcasing strong equity financing. Overall, the balance sheet is robust, with decreasing debt levels and solid equity ratios, though ROE has been pressured by declining net income.

Cash Flow

The free cash flow decreased by 35.43% from 2023 to 2024, reflecting lower cash generation. The operating cash flow to net income ratio was 1.34, indicating strong cash generation relative to net income. However, this was a decrease from 1.38 in 2023. The free cash flow to net income ratio was 0.66, down from 0.84 in 2023. The cash flow statement suggests challenges in generating free cash flow despite strong operating cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.67B	23.77B	22.62B	20.79B	22.37B
	Gross Profit
7.32B	8.01B	7.69B	7.77B	9.46B
	EBIT
3.35B	3.98B	3.31B	3.74B	5.24B
	EBITDA
4.43B	5.14B	4.12B	4.55B	6.02B
	Net Income Common Stockholders
2.30B	2.80B	1.93B	3.27B	4.59B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.32B	18.22B	18.70B	18.26B	20.60B
	Total Assets
39.80B	40.22B	42.34B	42.29B	44.44B
	Total Debt
13.11B	14.27B	17.07B	18.26B	20.86B
	Net Debt
-1.15B	-3.92B	-1.60B	12.92M	379.51M
	Total Liabilities
18.66B	19.59B	22.56B	23.01B	24.78B
	Stockholders Equity
20.92B	20.40B	19.52B	19.04B	19.41B
Cash Flow		Free Cash Flow
1.52B	2.35B	2.57B	3.82B	4.28B
	Operating Cash Flow
3.07B	3.88B	3.81B	4.60B	5.04B
	Investing Cash Flow
-110.26M	3.58B	-6.07B	2.68B	1.56B
	Financing Cash Flow
-3.59B	-5.55B	-4.14B	-6.49B	-3.93B

Hengan International Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1044, the sentiment is Positive. The current price of 21.9 is above the 20-day moving average (MA) of 21.74, above the 50-day MA of 21.03, and above the 200-day MA of 21.74, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 58.09 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1044.

Hengan International Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2145	77 Outperform	HK$26.57B	30.26	37.28%	2.54%	59.83%	68.29%
6601	77 Outperform	€4.01B	18.20	6.78%	4.81%	9.45%	12.30%
1044	73 Outperform	$25.51B	10.05	11.12%	8.23%	-6.53%	-18.43%
Sector *	65 Neutral	$8.88B	15.03	4.75%	203.74%	3.58%	-2.49%
2023	63 Neutral	HK$427.87M	7.69	12.01%	―	25.55%	14.47%
3332	55 Neutral	HK$656.15M	10.48	8.96%	―	30.72%	-35.61%
6993	54 Neutral	HK$25.14B	―	-7.87%	2.38%	16.82%	-348.71%

Hengan International Group Co Corporate Events

Hengan International Group Co Issues First Tranche of Commercial Papers

Hengan International Group Co has successfully issued the first tranche of its super short-term commercial papers, raising RMB1.0 billion with a coupon rate of 1.69% per annum. The proceeds will be used to supplement working capital and repay bank loans, enhancing the company’s financial stability and operational efficiency.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on Hengan International Group Co stock, see the HK:1044 Stock Forecast page.

Hengan International Group Co Successfully Passes All AGM Resolutions

Hengan International Group Co announced that all resolutions proposed at their Annual General Meeting (AGM) held on May 20, 2025, were passed by shareholders. Key resolutions included the approval of audited accounts, declaration of a final dividend, re-election of directors, re-appointment of auditors, and granting of mandates to the board for share repurchase and issuance. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued operational stability and strategic growth.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on Hengan International Group Co stock, see the HK:1044 Stock Forecast page.

Hengan International Announces Passing of Deputy Chairman

Hengan International Group Co announced the passing of its Deputy Chairman and Executive Director, Mr. Hui Lin Chit, who was a founder and instrumental in the company’s growth. Despite his passing, the board assures stakeholders that the company’s operations will remain unaffected and they will continue to focus on strengthening and developing the group.

Hengan International Announces AGM and Share Repurchase Plan

Hengan International Group Co has announced its Annual General Meeting (AGM) scheduled for May 20, 2025, in Hong Kong. Key agenda items include the consideration of audited accounts, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, a resolution will be proposed to authorize the company to repurchase up to 10% of its issued shares, which could impact shareholder value and market perception.