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

• Market Cap: $7.89B
• Dividend Yield: 0.82%
• Average Volume (3M): 7.46M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.89
• Revenue Growth: -8.10%
• EPS Growth: -108.48%
• Country: HK
• Employees: 2,800
• Sector: Healthcare
• Sector Strength: 59
• Industry: Packaged Foods
• EPS (TTM): -0.09
• Shares Outstanding: 645,561,340
• 10 Day Avg. Volume: 4,988,523
• 30 Day Avg. Volume: 7,460,615
• PEG Ratio: 0.72
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.89
• 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: $12.40
• Price Target Upside: 1.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: HK$15.00 ▲(22.75%Upside)

The overall stock score reflects strong technical momentum and stable cash flows, but is weighed down by poor valuation metrics and financial challenges such as declining revenue and net losses. Improvements in profitability and revenue growth are critical for better performance.

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

Company Description

Health and Happiness (H&H) International Holdings Limited, an investment holding company, manufactures and sells family nutrition and baby care products worldwide. The company's Infant Formulas segment produces infant formulas for children under seven years old and milk formulas for expectant and nursing mothers. Its Probiotic Supplements segment offers probiotic supplements in the form of sachets, capsules, and tablets for infants, children, and expectant mothers. The company's Adult Nutrition and Care Products segment produces vitamins, health supplements, and skincare and sports nutrition products for adults. Its Other Pediatric Products segment produces dried baby food and nutrition supplements, and baby care products. The company's Pet Nutrition and Care products segment produces food, health supplements, and bone broth products for pets. It is also involved in the research, development, and processing of meat, fruit, and vegetable powder and candy; research, development, manufacture, and sale of special nutritional foods; marketing and distribution of organic baby foods; and wholesale, retail, import, and export of nutritional food and personal care products for infants. In addition, the company engages in the trading and sale of vitamins, health supplements, probiotic skin care, and sports nutrition products for adults; and provision of online sales, software, and information technology services, as well as packaging services. It provides its products under the Biostime, Swisse, Aurelia, Zesty Paws, Solid Gold, Dodie, Good Gout, Aurelia London, and CBII brands. The company was formerly known as Biostime International Holdings Limited and changed its name to Health and Happiness (H&H) International Holdings Limited in June 2017. The company was founded in 1999 and is headquartered in Quarry Bay, Hong Kong. Health and Happiness (H&H) International Holdings Limited is a subsidiary of Biostime Pharmaceuticals (China) Limited.

How the Company Makes Money

H&H International Holdings generates revenue through the sale of its diverse range of products in the infant nutrition, adult nutrition, and personal care markets. The company's key revenue streams include the sale of infant formula and baby food under the Biostime brand; vitamins, minerals, and supplements through the Swisse brand; and personal care products under brands like Dodie. H&H leverages a multi-channel distribution strategy, including e-commerce platforms, retail partnerships, and direct-to-consumer sales, to reach a broad customer base globally. Strategic partnerships and acquisitions, such as the acquisition of Swisse Wellness, have also played a significant role in expanding the company's product offerings and market reach, contributing to its revenue growth.

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

Summary

Despite strong gross margins and cash flow, the company's financial performance is mixed due to declining revenue, a net loss affecting profitability, and high leverage. Cash flow remains stable, but strategic improvements are needed.

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
	EBIT
1.57B	1.83B	1.45B	1.09B	1.86B
	EBITDA
1.37B	2.04B	1.87B	1.42B	2.13B
	Net Income Common Stockholders
-53.72M	581.85M	611.78M	508.48M	1.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.60B	1.45B	2.30B	2.40B	1.83B
	Total Assets
18.84B	20.04B	20.96B	20.28B	17.22B
	Total Debt
9.36B	9.22B	9.67B	9.48B	6.17B
	Net Debt
7.76B	7.86B	7.37B	7.08B	4.34B
	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: 12.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 12.22 is below the 20-day moving average (MA) of 12.88, above the 50-day MA of 10.68, and above the 200-day MA of 9.55, indicating a neutral trend. The MACD of 0.52 indicates Positive momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 18.57 is Positive, 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	66 Neutral	$7.89B	21.96	-0.91%	0.82%	-8.10%	-108.48%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
VTSYF		$1.29B	80.54	4.00%	1.71%	―	―
1579	73 Outperform	HK$13.37B	16.58	15.77%	6.09%	4.68%	-14.34%
1475	71 Outperform	HK$7.20B	37.57	5.15%	2.31%	3.95%	-42.81%
1717	66 Neutral	HK$3.43B	13.50	4.14%	3.11%	-1.56%	30.87%
9676	62 Neutral	HK$7.98B	30.86		0.53%	―	―

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

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.

The most recent analyst rating on (HK:1112) stock is a Buy with a HK$13.10 price target. To see the full list of analyst forecasts on Health and Happiness (H&H) International Holdings stock, see the HK:1112 Stock Forecast page.

H&H International Holdings Passes Key Resolutions at AGM

Health and Happiness (H&H) International Holdings Limited held its Annual General Meeting on May 12, 2025, where all proposed resolutions were passed by poll. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, re-appointment of auditors, and granting of mandates to the board for share issuance and repurchase. These decisions reflect the company’s strategic direction and commitment to shareholder value, potentially impacting its market positioning and operational capabilities.

The most recent analyst rating on (HK:1112) stock is a Buy with a HK$13.10 price target. To see the full list of analyst forecasts on Health and Happiness (H&H) International Holdings stock, see the HK:1112 Stock Forecast page.

H&H International Holdings Sees Strong Q1 2025 Revenue Growth

Health and Happiness (H&H) International Holdings Limited reported a 10.4% increase in total revenue for the first quarter of 2025, driven by a strong recovery in mainland China and growth in core markets. The company’s infant milk formula business led the growth with a 46.9% increase, contributing significantly to the Baby Nutrition and Care segment’s 25.3% rise. The Adult Nutrition & Care and Pet Nutrition & Care segments also saw growth, supported by high-margin nutritional supplements which made up 65.1% of total revenue. The company maintained a healthy liquidity position with a cash balance of RMB1.4 billion.

H&H International Holdings Announces 2025 Annual General Meeting

Health and Happiness (H&H) International Holdings Limited has announced its upcoming Annual General Meeting scheduled for May 12, 2025, in Hong Kong. Key agenda items include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, re-appointment of auditors, and a resolution to grant the board a mandate to issue additional shares. These decisions are significant as they reflect the company’s ongoing governance practices and financial strategies, potentially impacting shareholder value and market positioning.

H&H International Holdings Reports 2024 Financial Decline

Health and Happiness (H&H) International Holdings Limited reported a challenging financial year for 2024, with a decline in revenue by 6.3% to RMB 13,051.7 million and a significant drop in net profit, resulting in a net loss of RMB 53.7 million compared to a profit of RMB 581.8 million in 2023. The company’s EBITDA and adjusted EBITDA also saw decreases, reflecting the impact of increased non-cash and non-recurring losses. This financial performance may affect the company’s market positioning and stakeholder confidence, as it navigates through these economic challenges.

H&H International Holdings Declares Final Dividend for 2024

Health and Happiness (H&H) International Holdings Limited has announced a final ordinary cash dividend of HKD 0.05 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, with the payment date set for July 9, 2025, following shareholder approval on May 12, 2025. The dividend declaration may enhance shareholder confidence and influence the company’s market positioning positively.