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

• Market Cap: $9.43B
• Dividend Yield: 1.65%
• Average Volume (3M): 6.05M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.87
• Revenue Growth: -2.15%
• EPS Growth: -202.71%
• Country: HK
• Employees: 2,800
• Sector: Consumer Defensive
• Sector Strength: 43
• Industry: Packaged Foods
• EPS (TTM): 0.62
• Shares Outstanding: 645,561,340
• 10 Day Avg. Volume: 6,630,249
• 30 Day Avg. Volume: 6,047,595
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: 11.35
• 1Y Price Target: $15.34
• Price Target Upside: 5.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: HK$12.50 ▼(-14.15% Downside)

The overall stock score is primarily influenced by the company's strong cash flow generation and gross margins, which are offset by declining revenue and a net loss. Technical indicators show moderate momentum, while valuation metrics are weak due to a negative P/E ratio, though the dividend yield provides some support.

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

Company Description

Health and Happiness (H&H) International Holdings Limited is a global health and wellness company specializing in premium nutrition and wellness products. The company operates in several sectors, including infant nutrition, adult nutrition, and pet nutrition, with a strong portfolio of brands such as Biostime, Swisse, and Solid Gold. H&H is committed to improving the health and well-being of its customers by offering scientifically-supported, high-quality products across its various segments.

How the Company Makes Money

H&H International Holdings generates revenue through the sale of its diverse range of health and wellness products across multiple segments. The company's key revenue streams include infant nutrition products, such as milk formulas and supplements under the Biostime brand, adult nutrition supplements under the Swisse brand, and pet nutrition products through the Solid Gold brand. H&H leverages its strong brand recognition, extensive distribution networks, and strategic partnerships to expand its market reach globally. The company also invests in research and development to innovate and cater to changing consumer demands, contributing to its earnings growth. Additionally, H&H benefits from strategic acquisitions that enhance its product offerings and geographic presence, further driving its revenue.

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 is a risk, but 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.05B	13.93B	12.78B	11.55B	11.19B
Gross Profit	7.92B	8.47B	7.70B	7.25B	7.19B
EBITDA	1.37B	2.04B	1.87B	1.42B	2.13B
Net Income	-53.72M	581.85M	611.78M	508.48M	1.14B
Balance Sheet
Total Assets	18.84B	20.04B	20.96B	20.28B	17.22B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.45B	2.30B	2.40B	1.83B
Total Debt	9.36B	9.22B	9.67B	9.48B	6.17B
Total Liabilities	13.03B	13.75B	14.82B	14.40B	11.02B
Stockholders Equity	5.81B	6.30B	6.14B	5.89B	6.20B
Cash Flow
Free Cash Flow	1.25B	1.01B	1.37B	1.78B	1.43B
Operating Cash Flow	1.35B	1.10B	1.47B	1.89B	1.53B
Investing Cash Flow	895.00K	-52.07M	-104.88M	-4.01B	-1.24B
Financing Cash Flow	-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: 14.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 14.56 is above the 20-day moving average (MA) of 13.62, above the 50-day MA of 12.22, and above the 200-day MA of 10.31, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 71.39 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
1475	71 Outperform	HK$7.31B	38.76	5.18%	1.38%	7.44%	-42.52%
1579	71 Outperform	HK$13.31B	16.63	16.58%	5.35%	1.10%	-7.88%
9676	65 Neutral	HK$15.70B	42.45	5.56%	2.18%	―	―
Sector *	62 Neutral	$20.49B	14.73	-2.68%	3.15%	1.98%	-5.13%
1112	62 Neutral	$9.43B	21.96	-4.66%	1.65%	-2.15%	-202.71%
VTSYF	―	$1.22B	41.81	7.71%	1.55%	―	―
1717	62 Neutral	HK$4.45B	15.23	4.53%	2.42%	0.52%	99.51%

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

H&H International Holdings Schedules Board Meeting for Interim Results

Health and Happiness (H&H) International Holdings Limited has announced a board meeting scheduled for August 26, 2025. The meeting will address the approval of the interim results for the first half of 2025 and the potential declaration of an interim dividend, impacting the company’s financial strategy and stakeholder interests.

H&H International Holdings Sees Revenue Growth Across Key Segments in H1 2025

Health and Happiness (H&H) International Holdings Limited reported a mid-single-digit increase in total revenue for the first half of 2025, driven by growth across all business segments. The Adult Nutrition and Care segment saw significant growth in mainland China and other markets, while the Baby Nutrition and Care segment experienced a resurgence in infant milk formula sales. Despite challenges in the pediatric probiotic sector, the Pet Nutrition and Care segment benefited from trends in pet nutrition and humanization. The company’s strategic focus on e-commerce and market expansion has bolstered its industry position.

H&H International Holdings Enhances Board Governance with Nomination Committee

Health and Happiness (H&H) International Holdings Limited has outlined the terms of reference for its Nomination Committee, which was established to oversee the structure and composition of the company’s board of directors. The committee is tasked with ensuring the board’s alignment with corporate strategy by reviewing its size, skills, and diversity, and making recommendations for potential new board members. This initiative is expected to enhance the company’s governance and strategic direction, potentially impacting its market positioning and stakeholder confidence.