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Hengan International Group Co., Ltd.

  • Market Cap: N/A
  • Industry: FMCG
  • ISIN: KYG4402L1510
  • HKG: 1044
HKD
19.92
-0.12 (-0.6%)

Sep 23

HKG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Shanghai Chicmax Cosmetics Co., Ltd.
Hengan International Group Co., Ltd.
L'Occitane International SA
Giant Biogene Holding Co. Ltd.
Vinda International Holdings Ltd.
Blue Moon Group Holdings Ltd.
Natural Beauty Bio-Technology Ltd.
China Ludao Technology Co. Ltd.
Evergreen Products Group Ltd.
Precious Dragon Technology Holdings Ltd.
China Golden Classic Group Ltd.

Why is Hengan International Group Co., Ltd. ?

1
High Debt company with Weak Long Term Fundamental Strength
  • Poor long term growth as Operating profit has grown by an annual rate -12.50% of over the last 5 years
  • The company is Net-Debt Free
2
Flat results in Jun 26
  • OPERATING CASH FLOW(Y) Lowest at HKD 6,569.28 MM
3
With ROE of 10.46%, it has a Attractive valuation with a 1.04 Price to Book Value
  • Over the past year, while the stock has generated a return of -20.67%, its profits have risen by 2.3% ; the PEG ratio of the company is 4.4
4
Consistent Underperformance against the benchmark over the last 3 years
  • Along with generating -20.67% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Hengan International Group Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hengan International Group Co., Ltd. for you?

Low Risk, High Return

Absolute
Risk Adjusted
Volatility
Hengan International Group Co., Ltd.
-20.45%
8.36
22.39%
Hang Seng Hong Kong
-5.07%
-0.26
18.70%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
-0.11%
EBIT Growth (5y)
-12.50%
EBIT to Interest (avg)
5.46
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
0.59
Tax Ratio
22.88%
Dividend Payout Ratio
64.53%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
13.11%
ROE (avg)
15.01%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.04
EV to EBIT
9.57
EV to EBITDA
6.72
EV to Capital Employed
1.04
EV to Sales
1.02
PEG Ratio
4.36
Dividend Yield
0.01%
ROCE (Latest)
10.89%
ROE (Latest)
10.46%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company
INTEREST COVERAGE RATIO(Q)

Highest at 1,116.97

DIVIDEND PAYOUT RATIO(Y)

Highest at 64.26%

RAW MATERIAL COST(Y)

Fallen by -6.26% (YoY

CASH AND EQV(HY)

Highest at HKD 25,642.95 MM

OPERATING PROFIT(Q)

Highest at HKD 2,027.56 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.04 %

-4What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at HKD 6,569.28 MM

Here's what is working for Hengan International Group Co., Ltd.

Interest Coverage Ratio
Highest at 1,116.97
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit
Highest at HKD 2,027.56 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin
Highest at 16.04 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv
Highest at HKD 25,642.95 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio
Highest at 64.26%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost
Fallen by -6.26% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation
Highest at HKD 611.73 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation
At HKD 611.73 MM has Grown at 6.93%
period on period (QoQ)
MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Hengan International Group Co., Ltd.

Operating Cash Flow
Lowest at HKD 6,569.28 MM and Fallen
In each year in the last three years
MOJO Watch
The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

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