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Consumer Non-Durables

Hengan International Group Co., Ltd.

Company Background

Hengan International Group is a publicly traded unit of the Hengan Group, China's largest sanitary goods maker, which was founded in 1985. Hengan International listed in Hong Kong in 1998. The company, which deals mainly in disposable diapers and sanitary napkins, competes fiercely with Britain's Procter & Gamble and Japan's Unicharm in China. Its strength lies in its extensive marketing network across China. It has 300 sales offices and has signed up more than 3,000 sales agents. It makes its products in more than 40 locations, including the Xinjiang Uyghur Autonomous Region.

Taking advantage of its price competitiveness, backed by a large economy of scale, the company also exports its goods to Southeast Asia, Africa and other regions. Relying on its branding power, it sells a wide range of products, including hand soap for children and detergent.

Group Chairman Sze Man Bok is said to have operated a clothing maker but entered the sanitary goods market, which used to be monopolized by a state-run enterprise.

Business Summary

Hengan International Group Co., Ltd. is an investment holding company, which engages in trading of personal hygienic products. It operates through the following segments: Sanitary Napkins Products, Disposable Diapers Products, Tissue Paper Products, and Others. The company was founded in 1985 and is headquartered in Jinjiang, China.

Financial Highlights

Dec 2019 HKDUSD
Revenue25,505.00M3,255.18M
Gross Profit9,588.33M1,223.75M
Operating income4,755.65M606.96M
Income before tax5,722.74M730.38M
Net income4,431.03M565.52M
EBITDA5,674.43M724.22M
Diluted EPS3.720.47
Dividends Per Share2.480.31
Total Assets48,366.69M6,207.38M
Total liabilities28,062.08M3,601.48M
Total equity19,992.58M2,565.84M
Operating cash flow4,133.92M527.60M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 23,019.92M 22,524.06M 20,847.30M 24,297.74M 25,505.00M
Gross Profit 9,184.46M 9,070.02M 8,494.15M 9,029.40M 9,588.33M
Operating income 5,349.01M 4,902.24M 4,746.06M 5,159.17M 4,755.65M
Income before tax 5,610.70M 5,326.83M 5,720.00M 5,809.02M 5,722.74M
Net income 3,988.09M 4,056.45M 4,374.85M 4,500.69M 4,431.03M
EBITDA 6,063.21M 5,642.06M 5,518.36M 6,034.93M 5,674.43M
Diluted EPS 3.28 3.46 3.63 3.72 3.72
Dividends Per Share 2.10 2.22 2.53 2.55 2.48
Total Assets 39,343.15M 38,093.27M 46,694.97M 52,059.75M 48,366.69M
Total liabilities 21,498.85M 21,639.91M 27,074.53M 32,675.19M 28,062.08M
Total equity 17,389.65M 16,415.35M 19,334.87M 19,072.65M 19,992.58M
Operating cash flow 4,560.40M 4,901.89M 4,701.60M 4,833.72M 4,133.92M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 2,969.32M 2,901.66M 2,675.19M 3,100.17M 3,255.18M
Gross Profit 1,184.69M 1,168.44M 1,089.99M 1,152.07M 1,223.75M
Operating income 689.96M 631.53M 609.03M 658.26M 606.96M
Income before tax 723.72M 686.23M 734.00M 741.17M 730.38M
Net income 514.42M 522.57M 561.39M 574.24M 565.52M
EBITDA 782.09M 726.84M 708.13M 770.00M 724.22M
Diluted EPS 0.42 0.44 0.46 0.47 0.47
Dividends Per Share 0.27 0.28 0.32 0.32 0.31
Total Assets 5,076.43M 4,913.26M 5,973.28M 6,649.30M 6,207.38M
Total liabilities 2,773.99M 2,791.11M 3,463.41M 4,173.42M 3,601.48M
Total equity 2,243.78M 2,117.24M 2,473.34M 2,436.04M 2,565.84M
Operating cash flow 588.24M 631.48M 603.32M 616.73M 527.60M

Valuation Measures

Dec 2019
PER14.90
ROA8.82%
ROE22.68%
Operating margin18.64%
Profit margin17.37%

Key executives

  • Deputy Chairman & Chief Executive Officer: Lin Chit Hui
  • Chief Operating Officer & Executive Director: Shui Shen Xu
  • Chief Financial Officer, Secretary & Director: Wai Leung Li
  • Executive Director & CEO-Investment Management: Da Zuo Xu
  • Director-Purchase Platform: Xiang Yang Wang

Shareholders

  • HUI LIN CHIT (22.3%)
  • SZE MAN BOK (20.0%)
  • Comgest SA (2.9%)
  • The Vanguard Group, Inc. (2.1%)
  • XU DA ZUO (1.4%)
  • Hang Seng Investment Management Ltd. (1.0%)
  • Yacktman Asset Management LP (1.0%)
  • BlackRock Fund Advisors (1.0%)
  • Lazard Asset Management LLC (0.9%)
  • XU CHUN MAN (0.9%)

Contact Details

  • Website:http://www.hengan.com/en
  • Address: Hengan Industrial City, Anhai Town, Jinjiang, 362261, China
  • Phone: +86.59.5570.8888

Related Companies

  • Hengan (Orient) Hygiene Product Co., Ltd.
  • PT Hengan Global
  • Hengan International Holdings Ltd.
  • Sunway Household (Weifang) Ltd.
  • Sunway Kordis Asia Ltd.
  • Starful Ltd.
  • Hengan (Luxembourg) Investment Co, Ltd.
  • Hengan (Shaanxi) Homecare Products Co., Ltd.
  • PT Hengan Global Hygiene Products
  • Weifang Hengan Gas Co., Ltd.
  • Xinjiang Hengan Paper Co., Ltd.
  • Hengan Li Ren (Jiangxi) Cosmetics Co., Ltd.
  • Xiamen Space Seven E-commerce Co., Ltd.
  • Fujian Hengan Homecare Products Co., Ltd.
  • Wuhu Hengan Hearttex Paper Products Co., Ltd.
  • Hengan (Zhejiang) Homecare Products Co., Ltd.
  • Shandong Hengan Paper Co., Ltd.
  • Jinjiang Hengan Household Tissue Product Co., Ltd.
  • Hengan (Chongqing) Living Paper Co., Ltd.
  • Hengan (Hunan) Hearttex Paper Co., Ltd.
  • Hengan (Hefei) Living Co., Ltd.
  • Hengan (Fushun) Household Products Co., Ltd.
  • Hengan (Xiaogan) Family Products Co., Ltd.
  • Guangdong Paper Products Co., Ltd.
  • Xiamen Hengan E-commerce Co., Ltd
  • Junichi Co., Ltd.
  • Junichi (Xiamen) Maternal & Child Articles Co., Ltd.
  • Jinjiang Hengan Hearttex Paper Products Co., Ltd.
  • Fujian Hengan Hygiene Material Co. , Ltd.
  • Hengan (Jinjiang) Household Products Co., Ltd.

Competitors

  • Essity AB Class B
Last Updated on 29 Oct, 2020

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