Hengan International Group Company Limited (1044.HK) valuation at a glance
- Price
- $2.51
- Forward P/E
- 7.9×
- Market cap
- $2.89B
Companies1044.HK
1044.HK
Hengan International Group Company Limited
Consumer DefensiveChinaTissue paperPersonal hygieneDividend payer
Overview
$2.51-1.9%
Market Cap
$2.89B
FY2025 annual results release 2026-03-17 (year ended
P/E (TTM)
7.9×
FY2025 annual results release 2026-03-17 (year ended
Rev Growth YoY
–
FY2025 annual results release 2026-03-17 (year ended
Gross Margin
35.4%
FY2025 annual results release 2026-03-17 (year ended
FCF Yield
11.3%
Calculated from FY2025 annual results release 2026-03-17 (year ended
Fair Value
Not established
Yahoo v8 chart 2026-09-17
Conviction
4/5FY2025 revenue of RMB 23,070M grew only 1.8% but gross margin rose to 33.8% and attributable profit to RMB 2,530M, up 10.3%.
Research Depth
ScreeningDeep ResearchFull Model
Updated 1d ago
Quality Snowflake
Overall 75/100
Value3/3
Future0/1
Past3/3
Health3/4
Dividend3/3
Each axis scores the checks for which data is available (filled = pass, hollow = no data). Computed from the sourced metrics on this page, not a third-party rating.
Thesis
Hengan International is a Cayman-incorporated, HKEX Main Board listed Chinese maker of tissue paper and personal hygiene products, selling sanitary napkins, disposable diapers and tissue under the Space 7, Anerle and Anle brands. For the year ended 31 December 2025, reported on 17 March 2026, revenue was approximately RMB 23,070M against RMB 22,670M in FY2024, a rise of 1.8%, while profit attributable to shareholders rose 10.3% to approximately RMB 2,530M and gross margin improved to 33.8% from 32.3%. Operating profit was approximately RMB 3,480M. Tissue paper revenue resumed growth of 5.6% to approximately RMB 14,170M and wet wipes sales rose 30.0% to approximately RMB 1,580M, offsetting a 5.3% decline in hygiene products revenue to approximately RMB 6,570M. The company declared a full-year dividend of RMB 1.40 per share, unchanged from FY2024. The record therefore rests on margin recovery and a maintained cash return rather than on top-line growth.
Bull Case
MarginFY2025 gross margin improved to approximately 33.8% from 32.3% in FY2024, lifting gross profit 6.6% to approximately RMB 7,810M on revenue that grew only 1.8%.
Cash returnThe board declared a FY2025 full-year dividend of RMB 1.40 per share, RMB 0.70 interim plus RMB 0.70 final, matching FY2024 and costing approximately RMB 1,630M in total payout.
Mix shiftFY2025 tissue paper revenue resumed growth of 5.6% to approximately RMB 14,170M and e-commerce and new retail channels grew 10.1% to 36.9% of total sales, up from 34.1% in FY2024.
Bear Case
Input costsThe FY2025 margin improvement was attributed in part to stable raw material prices, so pulp and other input cost volatility is the main swing factor on a 33.8% gross margin rather than volume.
Demand and competitionFY2025 hygiene products revenue fell approximately 5.3% to around RMB 6,570M as domestic brands used aggressive promotional strategies in e-commerce, showing direct sensitivity to Chinese consumer demand and price competition.
Growth and balance sheetFY2025 revenue growth of 1.8% is close to flat so the case rests on margin and cash return rather than expansion, while cash of approximately RMB 15,616M against debt of approximately RMB 15,761M is a gross-cash against gross-debt structure whose interest and refinancing exposure the RMB 145M net debt figure conceals.
Key Metrics
Market Cap
$2.89B
FY2025 annual results release 2026-03-17 (year ended
Enterprise Value
$2.94B
Calculated from FY2025 annual results release 2026-03-17 (year ended
Revenue (TTM)
–
FY2025 annual results release 2026-03-17 (year ended
P/E (TTM)
7.9×
FY2025 annual results release 2026-03-17 (year ended
Forward P/E
7.9×
Yahoo v8 chart 2026-09-17
P/S (TTM)
–
FY2025 annual results release 2026-03-17 (year ended
P/B
7.0×
FY2025 annual results release 2026-03-17 (year ended
EV/EBITDA
5.5×
Calculated from FY2025 annual results release 2026-03-17 (year ended
PEG
2.6×
Calculated from FY2025 annual results release 2026-03-17 (year ended
Revenue Growth
–
FY2025 annual results release 2026-03-17 (year ended
Gross Margin
35.4%
FY2025 annual results release 2026-03-17 (year ended
Operating Margin
17.8%
FY2025 annual results release 2026-03-17 (year ended
Net Margin
–
FY2025 annual results release 2026-03-17 (year ended
Free Cash Flow
$327M
FY2025 annual results release 2026-03-17 (year ended
FCF Yield
11.3%
Calculated from FY2025 annual results release 2026-03-17 (year ended
Debt / Equity
1.0×
FY2025 annual results release 2026-03-17 (year ended
Current Ratio
1.1×
FY2025 annual results release 2026-03-17 (year ended
Short Interest
–
FY2025 annual results release 2026-03-17 (year ended
Institutional Own.
21.2%
FY2025 annual results release 2026-03-17 (year ended
Insider Own.
47.7%
FY2025 annual results release 2026-03-17 (year ended
Shares Out.
1.15B
FY2025 annual results release 2026-03-17 (year ended
Float
603.8M
FY2025 annual results release 2026-03-17 (year ended
Valuation
Price vs Fair Value
Now $2.51
DCF Summary
DCF awaiting Phase 2+
Discounted cash-flow model is built once research reaches the deep-research stage.
Historical Multiples
Multiple history pending
This section is being deepened.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| 1044.HK | $22.66B | 7.9× | 1.0× | 5.5× | -6.0% | 35.0% | 11.0% |
| 0322.HK | $66.69B | 12.2× | 0.8× | 6.8× | +1.0% | 35.0% | 6.0% |
| 0151.HK | $32.73B | 7.4× | 1.3× | 4.5× | +5.0% | 46.0% | 16.0% |
| 2319.HK | $69.91B | 39.3× | 0.8× | 10.4× | +8.0% | 39.0% | 2.0% |
| 6862.HK | $51.45B | 10.8× | 1.1× | 7.3× | +8.0% | 22.0% | 9.0% |
| KMB | $32.79B | 19.5× | 2.0× | 11.0× | +1.0% | 38.0% | 12.0% |
Financials
| Line Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Total Revenue | 22,616 | 23,768 | 22,669 | 23,069 |
| Cost of Revenue | 14,926 | 15,757 | 15,344 | 15,263 |
| Gross Profit | 7,689 | 8,011 | 7,325 | 7,806 |
| Operating Income | 3,347 | 3,491 | 2,679 | 2,633 |
| EBITDA | 4,175 | 5,140 | 4,434 | 4,546 |
| Net Income | 1,925 | 2,801 | 2,299 | 2,535 |
| Diluted EPS | 1.66 | 2.42 | 2.02 | 2.23 |
| Line Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Cash & Equivalents | 18,667 | 18,190 | 14,262 | 15,616 |
| Total Assets | 42,337 | 40,216 | 39,804 | 43,182 |
| Total Debt | 17,065 | 14,268 | 13,113 | 15,761 |
| Total Liabilities | 22,562 | 19,586 | 18,659 | 21,209 |
| Shareholders' Equity | 19,524 | 20,396 | 20,921 | 21,752 |
| Shares Out. (M) | 1,162 | 1,162 | 1,139 | 1,138 |
| Line Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Operating Cash Flow | 3,810 | 3,875 | 3,072 | 3,241 |
| Capital Expenditure | (1,245) | (1,521) | (1,552) | (1,049) |
| Free Cash Flow | 2,565 | 2,355 | 1,521 | 2,193 |
| Investing Cash Flow | (6,066) | 3,584 | (110.3) | (5,680) |
| Financing Cash Flow | (4,137) | (5,549) | (3,592) | 769.0 |
Figures normalized from HENGAN INT'L's most recent annual report and exchange data. CNY millions; EPS and share count per their units. Annual periods. Source: HKEX announcement ↗
Catalysts
August 2026 (typical interim reporting window)
Earningshigh relevance
FY2026 interim results
Would show whether the second-half FY2025 recovery in hygiene products sales and the reduced tissue paper promotional spending carried into 2026, and whether the RMB 0.70 interim dividend is maintained.
March 2027 (FY2025 results were announced 2026-03-17)
Earningshigh relevance
FY2026 annual results
The FY2025 release states that management expects annual hygiene products revenue to remain stable in 2026 amid intense competition; the FY2026 report is the test of that statement.
Ongoing
Macro
Wood pulp and raw material pricing
FY2025 commentary credits stable raw material prices for part of the gross margin improvement to 33.8%, so pulp price moves feed directly into the reported margin.
Ongoing
Corporate
Share count and debt refinancing
Shares outstanding moved from 1,162M at FY2024 to 1,161M at FY2025, a reduction of about 0.09%; the roughly RMB 15,761M of gross debt requires continued refinancing.
Risks
| Risk | Category | Severity | Probability | Impact on Thesis |
|---|---|---|---|---|
| Raw material cost volatility compressing the gross margin | Operational | High | High | FY2025 gross margin of 33.8% was supported by stable raw material prices; a pulp price rise would work directly against the approximately RMB 7,810M of FY2025 gross profit. |
| Price competition in Chinese hygiene products | Competition | High | High | FY2025 hygiene products revenue declined approximately 5.3% to around RMB 6,570M on aggressive domestic promotional activity, and the company expects competition to remain intense in 2026. |
| Chinese consumer demand sensitivity | Market/Macro | Medium | Medium | Revenue is overwhelmingly domestic Chinese, so weaker household spending would show up in both the tissue and hygiene segments that together make up the FY2025 revenue of approximately RMB 23,070M. |
| Gross-debt against gross-cash balance sheet | Financial | Medium | Medium | FY2025 cash of approximately RMB 15,616M against debt of approximately RMB 15,761M means interest cost and refinancing risk on the full gross debt, not on the RMB 145M net figure, against operating profit of approximately RMB 3,480M. |
| Concentrated founding family control | Governance | Medium | Medium | Long-standing joint control by the founding families means minority holders have limited influence over capital allocation and the dividend policy; the exact stake is UNVERIFIED here. |
Technical Snapshot
52-Week Range
–$2.51–
RSI (14)
n/a
insufficient history
50-Day MA
–
insufficient history
200-Day MA
–
insufficient history
Avg Vol (30d)
vs average
Support Levels
Resistance Levels
Technical inputs: FY2025 annual results release 2026-03-17 (year ended. See the record-specific source notes for measurement basis.
Ownership & Insider Activity
Institutional Holdersvia Source-linked
Institutional holder details unavailable
This research record does not include a holder-level table.
Insider Activity
UNVERIFIED. The founding families associated with Hui Lin Chit and Xu Shui Sen are understood to hold long-standing joint control of Hengan International, but the exact percentage was not confirmed in this research pass because the ownership page returned HTTP 403. Readers should check the substantial shareholders and directors' interests sections of the latest annual report and the disclosure of interests filings on HKEXnews (https://www.hkexnews.hk) for the current figures.
Detailed insider transactions unavailable
This research record does not include a transaction-level table.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| 1044.HK | $22.66B | 7.9× | 1.0× | 5.5× | -6.0% | 35.0% | 11.0% |
| 0322.HK | $66.69B | 12.2× | 0.8× | 6.8× | +1.0% | 35.0% | 6.0% |
| 0151.HK | $32.73B | 7.4× | 1.3× | 4.5× | +5.0% | 46.0% | 16.0% |
| 2319.HK | $69.91B | 39.3× | 0.8× | 10.4× | +8.0% | 39.0% | 2.0% |
| 6862.HK | $51.45B | 10.8× | 1.1× | 7.3× | +8.0% | 22.0% | 9.0% |
| KMB | $32.79B | 19.5× | 2.0× | 11.0× | +1.0% | 38.0% | 12.0% |
Recognizable sector comparables. Source basis: FY2025 annual results release 2026-03-17 (year ended; lowest multiple in each column highlighted. Loss-making peers show no P/E.
Research Notes
2026-09-17Company release
FY2025 results verified against the results press release
The FY2025 annual results release dated 17 March 2026 was fetched this research pass and confirms revenue of approximately RMB 23,070M (FY2024: RMB 22,670M), gross profit up 6.6% to approximately RMB 7,810M, gross margin of 33.8% against 32.3%, operating profit up 3.9% to approximately RMB 3,480M, profit attributable to shareholders up 10.3% to approximately RMB 2,530M, basic EPS of RMB 2.227 and a full-year dividend of RMB 1.40 per share. Segment detail confirms tissue paper revenue up 5.6% to approximately RMB 14,170M and hygiene products revenue down approximately 5.3% to around RMB 6,570M.
2026-09-17Research
Balance sheet is gross-cash against gross-debt, not net cash
FY2025 cash of approximately RMB 15,616M sits against debt of approximately RMB 15,761M, giving net debt of approximately RMB 145M against operating profit of approximately RMB 3,480M. This is a large gross-cash and gross-debt structure rather than a net-cash balance sheet, and the interest and refinancing exposure attaches to the gross debt. Equity was approximately RMB 21,973M (FY2024: RMB 21,146M) and shares outstanding 1,161M (FY2024: 1,162M), a reduction of about 0.09% rather than dilution. Operating cash flow, capex and free cash flow were not independently computed in this research pass and are not stated here.
2026-09-17Research
Price, 52-week range and market structure
The Yahoo v8 chart endpoint fetched this research pass gives a last price of 19.70 HKD with a 52-week range of 19.44 to 29.96 HKD, so the quote sits close to the low end of that range rather than the high. On approximately 1,161M shares that is a market capitalisation of roughly 22.9bn HKD, about 2.9bn USD at 7.8446 HKD per USD. The HKEX board lot is 500 shares, confirmed from the official HKEX List of Securities file headed 'Updated as at 17/09/2026' and corroborated by futunn.com, so the minimum tradable unit is 9,850 HKD at that price; this is stated only as a plain market-structure fact.
Sources
Hengan International Group Company Limited valuation questions
What is Hengan International Group Company Limited's forward P/E ratio?
Hengan International Group Company Limited (1044.HK) trades at a forward P/E of 7.9×.
What is Hengan International Group Company Limited's market cap?
Hengan International Group Company Limited (1044.HK) has a market capitalization (its market value, often searched as "net worth") of $2.89B, and an enterprise value of $2.94B.