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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 2018 HKDUSD
Revenue24,297.74M3,100.17M
Gross Profit9,029.40M1,152.07M
Operating income5,159.17M658.26M
Income before tax5,809.02M741.17M
Net income4,500.69M574.24M
EBITDA6,034.93M770.00M
Diluted EPS3.720.47
Dividends Per Share2.550.32
Total Assets52,059.75M6,649.30M
Total liabilities32,675.19M4,173.42M
Total equity19,072.65M2,436.04M
Operating cash flow4,833.72M616.73M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 23,830.77M 23,019.92M 22,524.06M 20,847.30M 24,297.74M
Gross Profit 10,774.30M 10,851.08M 10,774.13M 8,494.15M 9,029.40M
Operating income 4,583.47M 5,349.01M 4,902.24M 4,746.06M 5,159.17M
Income before tax 5,342.88M 5,610.70M 5,326.83M 5,720.00M 5,809.02M
Net income 3,915.81M 3,988.09M 4,056.45M 4,374.85M 4,500.69M
EBITDA 5,338.08M 6,063.21M 5,642.06M 5,518.36M 6,034.93M
Diluted EPS 3.18 3.28 3.46 3.63 3.72
Dividends Per Share 2 2.10 2.22 2.53 2.55
Total Assets 42,576.59M 39,343.15M 38,093.27M 46,694.97M 52,059.75M
Total liabilities 24,690.10M 21,498.85M 21,639.91M 27,074.53M 32,675.19M
Total equity 17,461.07M 17,389.65M 16,415.35M 19,334.87M 19,072.65M
Operating cash flow 5,459.21M 4,560.40M 4,901.89M 4,701.60M 4,833.72M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 3,073.08M 2,969.32M 2,901.66M 2,675.19M 3,100.17M
Gross Profit 1,389.39M 1,399.67M 1,387.98M 1,089.99M 1,152.07M
Operating income 591.05M 689.96M 631.53M 609.03M 658.26M
Income before tax 688.98M 723.72M 686.23M 734.00M 741.17M
Net income 504.96M 514.42M 522.57M 561.39M 574.24M
EBITDA 688.36M 782.09M 726.84M 708.13M 770.00M
Diluted EPS 0.41 0.42 0.44 0.46 0.47
Dividends Per Share 0.25 0.27 0.28 0.32 0.32
Total Assets 5,490.31M 5,076.43M 4,913.26M 5,973.28M 6,649.30M
Total liabilities 3,183.82M 2,773.99M 2,791.11M 3,463.41M 4,173.42M
Total equity 2,251.63M 2,243.78M 2,117.24M 2,473.34M 2,436.04M
Operating cash flow 703.98M 588.24M 631.48M 603.32M 616.73M

Valuation Measures

Dec 2018
PER15.27
ROA9.11%
ROE23.43%
Operating margin21.23%
Profit margin18.52%

Key executives

  • Deputy Chairman & Chief Executive Officer: Lin Chit Hui
  • Chief Operating Officer & Executive Director: Shui Shen Xu
  • Chief Financial Officer & Executive Director: Da Zuo Xu
  • Director-Purchase Platform: Xiang Yang Wang
  • Executive Director & Director-Operations: Ching Chi Hui

Shareholders

  • HUI LIN CHIT (20.5%)
  • SZE MAN BOK (20.0%)
  • Capital Research & Management Co. (Global Investors) (4.8%)
  • Comgest SA (3.4%)
  • The Vanguard Group, Inc. (2.1%)
  • T. Rowe Price International Ltd. (1.6%)
  • XU DA ZUO (1.4%)
  • Lazard Asset Management LLC (1.4%)
  • BlackRock Fund Advisors (1.3%)
  • The Caisse de depot et placement du Quebec (1.1%)

Contact Details

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

Related Companies

  • Sunway Kordis Holding Ltd.
  • Hengan (Shaanxi) Paper Products Co., Ltd.
  • Hengan Mega Jumbo Investment Ltd.
  • Fujian Hengan Holding Co., Ltd.
  • Hengan International Investment Hong Kong Co.
  • Hengan Paper Products Co. Ltd. (Jiangxi)
  • Hengan Hygiene Products Co. Ltd. (Jiangxi)
  • Ever Town Investments Ltd.
  • Wang-Zheng Bhd.
  • Jinjiang Hengan Paper Products Co.
  • Hengan Chongqing Paper Products Co.
  • Fushun Hengan Hearttex Paper Products Co.
  • Changde Hengan Paper Products Co.
  • Sunway Pharmaceutical Group

Competitors

  • Essity AB Class B
Last Updated on 17 Oct, 2019

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