Hengan International Group Co (1044) AI Stock Analysis

• Market Cap: $31.94B
• Dividend Yield: 5.56%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.71
• Revenue Growth: -3.48%
• EPS Growth: -24.11%
• Country: HK
• Employees: 24,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.31
• Shares Outstanding: 1,162,121,000
• 10 Day Avg. Volume: 3,303,647
• 30 Day Avg. Volume: 2,548,985
• PEG Ratio: -0.63
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 15.82
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: 7.18
• 1Y Price Target: $27.05
• Price Target Upside: -1.28% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 73 Outperform
• Price Target: HK$31.00 ▲(13.14% Upside)

The overall stock score of 73 reflects strong technical momentum and attractive valuation, despite challenges in revenue growth and free cash flow generation. The company's solid profitability and reduced leverage are key strengths, but overbought technical indicators suggest caution in the short term.

Hengan International Group Co Business Overview & Revenue Model

Company Description

Hengan International Group Co., Ltd. is a leading investment holding company primarily engaged in the manufacturing, distribution, and sale of personal hygiene products. Headquartered in Jinjiang, China, the company operates in several key sectors, including sanitary napkins, disposable diapers, adult incontinence products, and tissue paper products. Hengan is recognized for its strong brand presence in the Chinese market and its commitment to providing high-quality and innovative hygiene solutions.

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

Solid profitability and a strong balance sheet with reduced leverage are key strengths. However, challenges in revenue growth and free cash flow generation are notable weaknesses impacting overall 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: 27.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 27.4 is above the 20-day moving average (MA) of 26.42, above the 50-day MA of 25.16, and above the 200-day MA of 21.99, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 71.34 is Negative, neither overbought nor oversold. The STOCH value of 80.50 is Negative, 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
6601	74 Outperform	HK$3.15B	14.50	6.65%	5.67%	9.72%	-10.15%
1044	73 Outperform	$31.94B	12.93	10.69%	5.56%	-3.48%	-24.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2023	62 Neutral	HK$363.93M	6.40	10.92%	―	11.10%	-4.38%
2145	62 Neutral	HK$39.80B	39.36	39.62%	2.46%	20.78%	18.37%
3332	56 Neutral	HK$664.25M	21.93	3.92%	―	-0.92%	-71.88%
6993	47 Neutral	HK$17.94B	―	-6.08%	4.59%	2.79%	-170.67%

Hengan International Group Co Corporate Events

Hengan International Completes Fourth Tranche of Commercial Papers

Hengan International Group Co announced the completion of its fourth tranche of super short-term commercial papers, raising RMB0.5 billion with a coupon rate of 1.77% and a term of 269 days. The proceeds will be used to supplement working capital and repay bank loans, reflecting the company’s strategic financial management to support its operations and enhance liquidity.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$28.50 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 Issues Third Tranche of Commercial Papers

Hengan International Group Co has announced the successful issuance of the third tranche of its super short-term commercial papers, amounting to RMB1 billion with a coupon rate of 1.74% per annum for a term of 182 days. The proceeds from this issuance are intended to supplement the company’s working capital and repay bank loans for some domestic subsidiaries, reflecting the company’s strategic financial management and operational expansion.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$28.50 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 Enhances Governance with New Nomination Committee

Hengan International Group Co has established a Nomination Committee to enhance its corporate governance structure. The committee, composed mainly of Independent Non-executive Directors, is tasked with identifying qualified individuals for board membership, reviewing board diversity, and assessing the independence and performance of directors. This move is expected to strengthen the company’s strategic alignment and ensure effective board oversight, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$28.50 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 Completes Second Tranche of Commercial Paper Issuance

Hengan International Group Co. has announced the successful issuance of the second tranche of its super short-term commercial papers, amounting to RMB0.7 billion with a 1.71% annual coupon rate and a term of 278 days. The proceeds from this issuance will be used to supplement the company’s working capital and repay bank loans, enhancing its financial flexibility and operational efficiency.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$28.50 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 Reports Stable Revenue Amid Market Challenges

Hengan International Group Co., a leading manufacturer and distributor of personal hygiene products, operates primarily in the consumer goods sector with a strong presence in the Chinese market. The company’s latest earnings report for the first half of 2025 shows a slight decrease in revenue by 0.2% to RMB11.8 billion, compared to the same period last year. Despite challenges in the hygiene product industry, Hengan maintained stable revenue through growth in tissue paper sales and a robust omni-channel sales strategy. Key financial metrics indicate a decrease in operating profit by 7.3% and a slight drop in profit attributable to shareholders by 2.6%. The company continues to focus on product premiumisation and expanding its market presence through e-commerce and new retail channels. Looking ahead, Hengan International aims to sustain its revenue through strategic initiatives in product diversification and stable pricing, while leveraging growth opportunities in the evolving consumer market.

Hengan International Announces Interim Dividend for 2025

Hengan International Group Co. announced an interim cash dividend of RMB 0.7 per share for the six months ending June 30, 2025, reflecting its ongoing commitment to shareholder returns. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09317, with payment scheduled for October 10, 2025. This announcement underscores the company’s stable financial performance and its strategic focus on maintaining investor confidence.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$26.80 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 Reports Slight Revenue Decline in 2025 Interim Results

Hengan International Group Co reported its interim financial results for the first half of 2025, showing a slight decrease in revenue by 0.2% to RMB 11.8 billion compared to the previous year. The company’s gross profit margin and operating profit also saw declines, indicating challenges in maintaining profitability. Despite these decreases, the company maintains a stable finished goods turnover and trade receivables turnover, suggesting operational efficiency. The financial results reflect the company’s ongoing efforts to navigate market conditions while focusing on sustaining shareholder returns.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$26.80 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 Announces Board Meeting for Interim Results

Hengan International Group Co has announced that its board of directors will meet on August 21, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This announcement could impact the company’s financial strategy and provide insights into its performance and future prospects.

The most recent analyst rating on (HK:1044) stock is a Buy with a HK$41.00 price target. To see the full list of analyst forecasts on Hengan International Group Co stock, see the HK:1044 Stock Forecast page.