Hengan International Group Co (1044) AI Stock Analysis

• Market Cap: HK$28.40B
• Dividend Yield: 6.23%
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.77
• Revenue Growth: -6.53%
• EPS Growth: -18.43%
• Country: HK
• Employees: 24,000
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Household & Personal Products
• EPS (TTM): 0.83
• Shares Outstanding: 1,162,121,000
• 10 Day Avg. Volume: 3,246,452
• 30 Day Avg. Volume: 3,058,986
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$24.41
• Price Target Upside: -0.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: HK$24.50 ▲(0.25% Upside)

The overall stock score reflects strong valuation metrics, with a low P/E ratio and high dividend yield, which are major strengths. Technical indicators show positive momentum, supporting a favorable outlook. However, financial performance is hampered by challenges in revenue growth and cash flow generation, which need to be addressed for sustained improvement.

Hengan International Group Co Business Overview & Revenue Model

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 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. In addition, the company manufactures and distributes heat and power; and manufactures, distributes, and sells gas, protective equipment, medical instrument, skin care products, antiseptics, and household products. Hengan International Group Company Limited was founded in 1985 and is headquartered in Jinjiang, the People's Republic of China.

How the Company Makes Money

Hengan International Group Co. makes money primarily through the sale of its personal hygiene products across various segments. The company's revenue streams include sanitary napkins, which cater to the female hygiene market, and disposable diapers, targeting infants and toddlers. The adult incontinence products serve an aging population, while the tissue paper segment covers household and personal tissue products. Hengan leverages its extensive distribution network and strong brand recognition to maintain its market presence. Additionally, strategic partnerships and investments in research and development contribute to product innovation, helping the company to sustain and grow its revenue in a competitive market.

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
EBITDA	4.43B	5.14B	4.12B	4.55B	6.02B
Net Income	2.30B	2.80B	1.93B	3.27B	4.59B
Balance Sheet
Total Assets	39.80B	40.22B	42.34B	42.29B	44.44B
Cash, Cash Equivalents and Short-Term Investments	14.32B	18.22B	18.70B	18.26B	20.60B
Total Debt	13.11B	14.27B	17.07B	18.26B	20.86B
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: 24.44
• 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 24.44 is above the 20-day moving average (MA) of 23.55, above the 50-day MA of 22.79, and above the 200-day MA of 21.69, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 68.74 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 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$36.97B	42.10	37.28%	1.85%	59.83%	68.29%
6601	74 Outperform	€3.51B	15.90	6.78%	5.18%	9.45%	12.30%
1044	72 Outperform	HK$28.40B	11.19	11.12%	6.23%	-6.53%	-18.43%
2023	66 Neutral	HK$418.03M	7.60	12.01%	―	25.55%	14.47%
3332	61 Neutral	HK$761.46M	11.87	8.96%	―	30.72%	-35.61%
Sector *	54 Neutral	C$5.27B	4.16	-2.52%	3.52%	18.95%	8.48%
6993	48 Neutral	HK$21.28B	―	-7.87%	2.67%	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.