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Hengan International Group Co Ltd (HK:1044)
:1044

Hengan International Group Co (1044) AI Stock Analysis

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HK

Hengan International Group Co

(OTC:1044)

Rating:73Outperform
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 (1044) vs. iShares MSCI Hong Kong ETF (EWH)

Hengan International Group Co Business Overview & Revenue Model

Company DescriptionHengan 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 MoneyHengan 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
65
Positive
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
78
Positive
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
60
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
22.67B23.77B22.62B20.79B22.37B
Gross Profit
7.32B8.01B7.69B7.77B9.46B
EBIT
3.35B3.98B3.31B3.74B5.24B
EBITDA
4.43B5.14B4.12B4.55B6.02B
Net Income Common Stockholders
2.30B2.80B1.93B3.27B4.59B
Balance SheetCash, Cash Equivalents and Short-Term Investments
14.32B18.22B18.70B18.26B20.60B
Total Assets
39.80B40.22B42.34B42.29B44.44B
Total Debt
13.11B14.27B17.07B18.26B20.86B
Net Debt
-1.15B-3.92B-1.60B12.92M379.51M
Total Liabilities
18.66B19.59B22.56B23.01B24.78B
Stockholders Equity
20.92B20.40B19.52B19.04B19.41B
Cash FlowFree Cash Flow
1.52B2.35B2.57B3.82B4.28B
Operating Cash Flow
3.07B3.88B3.81B4.60B5.04B
Investing Cash Flow
-110.26M3.58B-6.07B2.68B1.56B
Financing Cash Flow
-3.59B-5.55B-4.14B-6.49B-3.93B

Hengan International Group Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.90
Price Trends
50DMA
21.03
Positive
100DMA
21.02
Positive
200DMA
21.74
Positive
Market Momentum
MACD
0.22
Positive
RSI
58.09
Neutral
STOCH
75.56
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$26.57B30.2637.28%2.54%59.83%68.29%
77
Outperform
€4.01B18.206.78%4.81%9.45%12.30%
73
Outperform
$25.51B10.0511.12%8.23%-6.53%-18.43%
65
Neutral
$8.88B15.034.75%203.74%3.58%-2.49%
63
Neutral
HK$427.87M7.6912.01%25.55%14.47%
55
Neutral
HK$656.15M10.488.96%30.72%-35.61%
54
Neutral
HK$25.14B-7.87%2.38%16.82%-348.71%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1044
Hengan International Group Co
21.90
-1.86
-7.84%
HK:6993
Blue Moon Group Holdings Ltd.
4.21
2.26
115.90%
HK:3332
Nanjing Sinolife United Co., Ltd. Class H
0.42
-0.09
-17.65%
HK:2145
Shanghai Chicmax Cosmetics Co., Ltd. Class H
65.65
22.35
51.62%
HK:2023
China Ludao Technology Co. Ltd.
0.87
-0.06
-6.45%
HK:6601
Cheerwin Group Limited
3.01
1.36
82.98%

Hengan International Group Co Corporate Events

Hengan International Group Co Issues First Tranche of Commercial Papers
May 30, 2025

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
May 20, 2025

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
Apr 21, 2025

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
Apr 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.