Health and Happiness (H&H) International Holdings (1112) AI Stock Analysis

• Market Cap: HK$8.88B
• Dividend Yield: 1.77%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -2.15%
• EPS Growth: -202.71%
• Country: HK
• Employees: 2,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.63
• Shares Outstanding: 645,561,340
• 10 Day Avg. Volume: 985,367
• 30 Day Avg. Volume: 2,140,320
• PEG Ratio: 0.91
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 4.27
• 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$17.57
• Price Target Upside: 45.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 6.58
• Revenue Forecast (FY): HK$110.38B

• Rating: 67 Neutral
• Price Target: HK$15.50 ▲(28.10% Upside)

The stock's overall score is primarily influenced by strong technical momentum and solid cash flow generation. However, concerns about declining revenue, net losses, and high leverage weigh on the financial performance. Valuation is also a concern due to a negative P/E ratio, despite a modest dividend yield.

Positive Factors

Cash Flow Generation

Strong cash flow generation supports financial stability and provides flexibility for strategic investments and debt management.

Gross Profit Margin

High gross profit margins indicate effective cost management and pricing power, contributing to long-term profitability.

Free Cash Flow Growth

Growth in free cash flow enhances the company's ability to fund operations, pay down debt, and invest in growth opportunities.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market demand or competitive positioning, impacting growth prospects.

High Leverage

High leverage increases financial risk, especially in volatile markets, potentially affecting long-term sustainability.

Net Loss Impact

A net loss undermines profitability and return on equity, posing challenges for future financial performance and investor confidence.

Health and Happiness (H&H) International Holdings Business Overview & Revenue Model

Company Description

Health and Happiness (H&H) International Holdings (1112) is a global leader in the health and wellness sector, focusing on nutritional supplements, personal care products, and infant and maternal health solutions. The company operates primarily through its various subsidiaries and brands, delivering high-quality products that promote health, wellbeing, and happiness. H&H is dedicated to innovation and sustainability, catering to diverse consumer needs across multiple markets, including Asia, Europe, and North America.

How the Company Makes Money

H&H International Holdings generates revenue through multiple channels, primarily by selling its core products, which include dietary supplements, functional foods, and personal care items. The company's revenue model is based on direct sales, distribution partnerships, and e-commerce platforms. Key revenue streams include retail sales through pharmacies and health stores, online sales through its own website and third-party e-commerce platforms, and partnerships with healthcare professionals and institutions. Additionally, H&H benefits from strategic collaborations with other companies in the health and wellness space, enhancing its market reach and product offerings, which further contributes to its earnings.

Health and Happiness (H&H) International Holdings Financial Statement Overview

Summary

The company shows strong gross margins and cash flow generation, but faces challenges with declining revenue and a net loss impacting profitability and ROE. High leverage poses risks, though stable cash flows provide a buffer.

Income Statement

The company exhibits a mixed income statement with some strengths and weaknesses. The Gross Profit Margin for 2024 is approximately 60.64%, which indicates strong profitability at the gross level. However, the Net Profit Margin is negative at -0.41%, which is concerning, primarily due to a net loss in 2024. Revenue has decreased by 6.28% from 2023 to 2024, indicating challenges in maintaining growth. EBIT Margin stands at 12.04%, and EBITDA Margin at 10.48%, both indicating operational profitability but showing a decline from previous years.

Balance Sheet

The balance sheet reveals some stability but also areas of concern. The Debt-to-Equity Ratio is 1.61 for 2024, indicating a relatively high level of leverage which could pose risks in a volatile market. Return on Equity (ROE) is negative due to the net loss, which is a concern. However, the Equity Ratio is 30.85%, suggesting a reasonable proportion of equity financing, which provides a cushion against liabilities.

Cash Flow

Cash flow analysis shows a robust operating cash flow of HK$1,346 million in 2024, which indicates good cash generation capability. Free Cash Flow increased by 24.19% from 2023 to 2024, indicating strong cash management. The Operating Cash Flow to Net Income Ratio is negative due to net loss, but Free Cash Flow remains strong, demonstrating the company's ability to generate cash despite profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.38B	13.05B	13.93B	12.78B	11.55B	11.19B
Gross Profit	8.19B	7.92B	8.47B	7.70B	7.25B	7.19B
EBITDA	1.39B	1.37B	2.04B	1.87B	1.42B	2.13B
Net Income	-288.51M	-53.72M	581.85M	611.78M	508.48M	1.14B
Balance Sheet
Total Assets	19.40B	18.84B	20.04B	20.96B	20.28B	17.22B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.60B	1.45B	2.30B	2.40B	1.83B
Total Debt	9.31B	9.36B	9.22B	9.67B	9.48B	6.69B
Total Liabilities	13.39B	13.03B	13.75B	14.82B	14.40B	11.02B
Stockholders Equity	6.01B	5.81B	6.30B	6.14B	5.89B	6.20B
Cash Flow
Free Cash Flow	1.19B	1.25B	1.01B	1.37B	1.78B	1.43B
Operating Cash Flow	1.29B	1.35B	1.10B	1.47B	1.89B	1.53B
Investing Cash Flow	-38.88M	895.00K	-52.07M	-104.88M	-4.01B	-1.24B
Financing Cash Flow	-1.69B	-1.07B	-1.99B	-1.49B	2.77B	-687.68M

Health and Happiness (H&H) International Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.10
• 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:1112, the sentiment is Positive. The current price of 12.1 is below the 20-day moving average (MA) of 13.96, below the 50-day MA of 13.34, and above the 200-day MA of 11.99, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 58.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1112.

Health and Happiness (H&H) International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1112	67 Neutral	HK$8.88B	-28.32	-4.66%	1.77%	-2.15%	-202.71%
1475	67 Neutral	HK$7.03B	33.85	5.55%	1.41%	7.29%	-33.19%
1579	66 Neutral	HK$12.00B	15.00	16.58%	5.89%	1.10%	-7.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9676	62 Neutral	HK$13.37B	36.15	5.56%	2.52%	―	―
1717	59 Neutral	HK$3.68B	12.61	4.53%	2.90%	0.52%	99.51%
0345	58 Neutral	HK$6.70B	28.91	7.63%	2.21%	-3.39%	91.63%

Health and Happiness (H&H) International Holdings Corporate Events

H&H International Holdings Sees 12% Revenue Growth in Nine Months Ending September 2025

Health and Happiness (H&H) International Holdings Limited reported a 12.0% year-on-year increase in total revenue for the nine months ending September 2025, reaching RMB10,805.3 million. The company’s growth was driven by strong performances across all business segments, particularly in nutritional supplements, which accounted for 64.5% of revenue. The Baby Nutrition and Care segment saw a notable 24.0% increase, largely due to a 33.3% rise in the infant milk formula business. The company also made strides in reducing leverage by making voluntary prepayments on its USD term loan, maintaining robust liquidity with a RMB1.74 billion cash balance.