# Hengan Intl Group Ltd-H (1044.HK)

Canonical: https://gigainvestors.com/s/1044.HK

Analysis as of: 2026-10-16T07:39:22.793Z. Financial observations: FY1997–FY2025.

Listing currency: HKD. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 20.02 per share; close as of 2026-10-15.

Estimated value: low HKD 43.65 per share, central HKD 47.53 per share, high HKD 52.71 per share. Buy at or below the central value HKD 47.53 per share. Valuation as of 2026-10-16T07:39:22.793Z; scenarios are not confidence intervals.

Expected annual return: 56.8% at the stated quote. About 56.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.25×

- FY2017: 0.26×

- FY2018: 0.24×

- FY2019: 0.22×

- FY2020: 0.29×

- FY2021: 0.22×

- FY2022: 0.13×

- FY2023: 0.17×

- FY2024: 0.15×

- FY2025: 0.15×

### moat: fail

- Recent gross margin fell 4.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 19.7%

- ROIC, second-lowest year: 12.9%

- Typical minus recent gross margin: 4.1 pp

- Typical gross margin (annual median): 37.8%

- Recent gross margin (lower of latest and 3-year median): 33.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.6%

- ROIC including acquisitions, ten-year median: 18.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 23.8%

- FY2017: 21.9%

- FY2018: 20.0%

- FY2019: 20.9%

- FY2020: 25.8%

- FY2021: 18.6%

- FY2022: 11.3%

- FY2023: 19.4%

- FY2024: 13.5%

- FY2025: 12.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 12B

- Net income, five-year total: CNY 13B

- Return on incremental invested capital: -26.6%

- Working capital / revenue, annual change: -0.9 pp

- Working capital / revenue, change between three-year averages: -5.6 pp

- Working capital / revenue, final three-year average: 17.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.01×

- FY2022: 1.00×

- FY2023: 0.94×

- FY2024: 0.75×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 21.9% vs 13.5%

- Per-share earnings: 2.97 to 2.23 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.7%

- Ordinary dilution, 5-year annual growth: -0.8%

- Market cap gain: CNY -32B

- Cumulative retained earnings: CNY 5.1B

- Diluted shares, 10-year annual growth: -0.7%

- Diluted shares, 5-year annual growth: -0.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -3.5%

- Per-share value change: CNY -0.75

- Per-share value, starting three-year median: CNY 2.97

- Per-share value, ending three-year median: CNY 2.23

- Buybacks concentrated in cheaper years (correlation): -0.14

- Average buyback yield: 0.9%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 1.2B

- Cumulative net income, 10 years: CNY 33B

- ROIC, first three-year median: 21.9%

- ROIC, last three-year median: 13.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 2.97

- FY2017: CNY 3.14

- FY2018: CNY 3.19

- FY2019: CNY 3.28

- FY2020: CNY 3.87

- FY2021: CNY 2.80

- FY2022: CNY 1.66

- FY2023: CNY 2.41

- FY2024: CNY 2.02

- FY2025: CNY 2.23

### accounting: pass

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 0.86×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.28×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.08×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.4%

- FY2017: -0.6%

- FY2018: -0.4%

- FY2019: 1.1%

- FY2020: -1.0%

- FY2021: -3.1%

- FY2022: -4.5%

- FY2023: -2.7%

- FY2024: -1.9%

- FY2025: -1.6%

## Holders

## Price story

Down 52% since Feb 2022 · sales +1.8%

Story as of 2026-10-16T10:00:10.742Z; price observation 2026-10-15.

Price needs cash profits to shrink 25.2% a year for ten years

### Sales · FY2024–2025

sales +1.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 19B 

- FY2017: CNY 18B 

- FY2018: CNY 21B 

- FY2019: CNY 22B 

- FY2020: CNY 22B 

- FY2021: CNY 21B 

- FY2022: CNY 23B 

- FY2023: CNY 24B 

- FY2024: CNY 23B 

- FY2025: CNY 23B 

### Gross margin · FY2025

gross margin 33.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 48.8% 

- FY2017: 41.8% 

- FY2018: 38.2% 

- FY2019: 38.6% 

- FY2020: 42.3% 

- FY2021: 37.4% 

- FY2022: 34.0% 

- FY2023: 33.7% 

- FY2024: 32.3% 

- FY2025: 33.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in household & personal products; annual sales are CNY 23.1 billion.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2025-12-31 (filed 2026-10-16T07:39:22.793Z); FY2025: revenue 23068869000; grossProfit 7805874000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1044.HK: Hengan International Group Company Limited, together with its subsidiaries, manufactures, distributes, and sells consumer goods in China, Hong Kong, Macau, and internationally. It operates through three segments: Personal Hygiene Products, Tissue Paper Products, and Others. The company offers sanitary napkins and disposable cosmetics; baby products; adult, baby, children, and household wet wipes; and adult diapers and pull ups, leak-proof diapers, nursing pads, sanitary wipes, and other adult hygiene care products. It also provides tissue products, including facial tissues, handkerchiefs, toilet papers, paper napkins, kitchen paper towels, hand towels, and finished raw papers; and home furnishing, such as lazy-person cleaning cloths, food storage bags, cling films, resealable bags, cleaning bags, aluminum foil, tablecloths, PE gloves, and others. In addition, the company engages in e-commerce, trading, and procurement; manufacturing, distribution, and sale of protective equipment, medical instrument, skin care products, and antiseptics, as well as heating and power and gas; online sale of cosmetic products and personal hygiene products; distribution of disposable fibre-based products; manufacturing and sale of facial cotton products; importing, processing, and trading of papers; consultancy; and wholesale of personal effects. It sells its products under the Xinxiangyin, Zhupi, Pinnuo, Youxuan, Rouying, An'erle, Qimo, An'erkang, Bianlitu, Jialaina, and Yueshi brand names. The company was founded in 1985 and is headquartered in Jinjiang, China.

### Why customers stay

Margins ranged from 32.3% to 33.8% during 2023–25; it earns 19.7% on its capital.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2023-12-31 (filed 2026-10-16T07:39:22.793Z); FY2023: grossProfit / revenue = 33.7%.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2024-12-31 (filed 2026-10-16T07:39:22.793Z); FY2024: grossProfit / revenue = 32.3%.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2025-12-31 (filed 2026-10-16T07:39:22.793Z); FY2025: grossProfit / revenue = 33.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:22.793Z); 10-year return on capital observations [[2016,0.23827216817831853],[2017,0.2193249349874668],[2018,0.19979842085295257],[2019,0.20894418965012235],[2020,0.25759703165004694],[2021,0.18613364485345193],[2022,0.11338374282784966],[2023,0.19405189907850445],[2024,0.13486297222762908],[2025,0.1285748391302231]]; median 0.1969251599657285. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 3.2% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2016-12-31 (filed 2026-10-16T07:39:22.793Z); FY2016: growth capex 243863000; upkeep 657250000; owner earnings 3596821000. Growth capex / owner earnings = 0.06779959302951134.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2017-12-31 (filed 2026-10-16T07:39:22.793Z); FY2017: growth capex 0; upkeep 888776000; owner earnings 3601995000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2018-12-31 (filed 2026-10-16T07:39:22.793Z); FY2018: growth capex 0; upkeep 701354000; owner earnings 3867544000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2019-12-31 (filed 2026-10-16T07:39:22.793Z); FY2019: growth capex 82006000; upkeep 816134000; owner earnings 3905658000. Growth capex / owner earnings = 0.020996718094620677.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2020-12-31 (filed 2026-10-16T07:39:22.793Z); FY2020: growth capex 0; upkeep 760696000; owner earnings 4609406000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2021-12-31 (filed 2026-10-16T07:39:22.793Z); FY2021: growth capex 0; upkeep 781334000; owner earnings 3291099000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2022-12-31 (filed 2026-10-16T07:39:22.793Z); FY2022: growth capex 433640000; upkeep 811017000; cash acquisitions 6184000; owner earnings 1918300000. Growth capex plus acquisitions / owner earnings = 0.2292780065683157.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2023-12-31 (filed 2026-10-16T07:39:22.793Z); FY2023: growth capex 459195226.1632935; upkeep 1061310773.8367065; cash acquisitions 15500000; owner earnings 2632917626.1632934. Growth capex plus acquisitions / owner earnings = 0.1802924715328154.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2024-12-31 (filed 2026-10-16T07:39:22.793Z); FY2024: growth capex 0; upkeep 1551648000; cash acquisitions 0; owner earnings 1729180400. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2025-12-31 (filed 2026-10-16T07:39:22.793Z); FY2025: growth capex 80172000; upkeep 968430000; cash acquisitions 0; owner earnings 2529665600. Growth capex plus acquisitions / owner earnings = 0.03169272650108378.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:22.793Z); Dividend observations: [[2016,2197136000],[2017,2470021000],[2018,2593258000],[2019,2617290000],[2020,2914734000],[2021,2705920000],[2022,1626970000],[2023,1626970000],[2024,1594490000],[2025,1593580000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/1044.HK.json#2025-12-31 (filed 2026-10-16T07:39:22.793Z); FY2025: cash repurchases 25727000 CNY.

### Are managers owners

Insiders own 47.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 1044.HK SharesStats.PercentInsiders = 47.776 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 25.2% yearly over ten years; actual decline was 1.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:22.793Z); Ten-year compound average after fade. Initial solved rate -0.35651270263642265. Price 20.02; FX 1.1727222788982186; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.5466867867243317 → FY2025 2.2225785846892414. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 61.75 per share

- 2016-11: HKD 61.05 per share

- 2016-12: HKD 56.95 per share

- 2017-01: HKD 63.75 per share

- 2017-02: HKD 66.30 per share

- 2017-03: HKD 57.80 per share

- 2017-04: HKD 58.20 per share

- 2017-05: HKD 54.65 per share

- 2017-06: HKD 57.60 per share

- 2017-07: HKD 59.60 per share

- 2017-08: HKD 65.40 per share

- 2017-09: HKD 72.30 per share

- 2017-10: HKD 76.90 per share

- 2017-11: HKD 76.15 per share

- 2017-12: HKD 86.75 per share

- 2018-01: HKD 75.00 per share

- 2018-02: HKD 76.50 per share

- 2018-03: HKD 72.70 per share

- 2018-04: HKD 70.00 per share

- 2018-05: HKD 74.70 per share

- 2018-06: HKD 75.50 per share

- 2018-07: HKD 69.85 per share

- 2018-08: HKD 70.65 per share

- 2018-09: HKD 72.20 per share

- 2018-10: HKD 62.10 per share

- 2018-11: HKD 63.95 per share

- 2018-12: HKD 57.00 per share

- 2019-01: HKD 61.60 per share

- 2019-02: HKD 63.45 per share

- 2019-03: HKD 68.80 per share

- 2019-04: HKD 69.15 per share

- 2019-05: HKD 57.50 per share

- 2019-06: HKD 57.45 per share

- 2019-07: HKD 59.25 per share

- 2019-08: HKD 51.60 per share

- 2019-09: HKD 51.40 per share

- 2019-10: HKD 54.80 per share

- 2019-11: HKD 51.70 per share

- 2019-12: HKD 55.50 per share

- 2020-01: HKD 57.00 per share

- 2020-02: HKD 57.85 per share

- 2020-03: HKD 58.35 per share

- 2020-04: HKD 69.15 per share

- 2020-05: HKD 63.30 per share

- 2020-06: HKD 60.70 per share

- 2020-07: HKD 65.05 per share

- 2020-08: HKD 61.10 per share

- 2020-09: HKD 56.25 per share

- 2020-10: HKD 53.75 per share

- 2020-11: HKD 53.50 per share

- 2020-12: HKD 54.90 per share

- 2021-01: HKD 55.65 per share

- 2021-02: HKD 53.70 per share

- 2021-03: HKD 51.10 per share

- 2021-04: HKD 50.35 per share

- 2021-05: HKD 52.05 per share

- 2021-06: HKD 52.00 per share

- 2021-07: HKD 46.15 per share

- 2021-08: HKD 45.10 per share

- 2021-09: HKD 41.70 per share

- 2021-10: HKD 40.65 per share

- 2021-11: HKD 37.65 per share

- 2021-12: HKD 40.15 per share

- 2022-01: HKD 38.10 per share

- 2022-02: HKD 41.45 per share

- 2022-03: HKD 36.20 per share

- 2022-04: HKD 37.20 per share

- 2022-05: HKD 38.95 per share

- 2022-06: HKD 36.85 per share

- 2022-07: HKD 37.95 per share

- 2022-08: HKD 37.60 per share

- 2022-09: HKD 35.10 per share

- 2022-10: HKD 30.45 per share

- 2022-11: HKD 35.95 per share

- 2022-12: HKD 41.45 per share

- 2023-01: HKD 38.50 per share

- 2023-02: HKD 36.10 per share

- 2023-03: HKD 36.30 per share

- 2023-04: HKD 35.00 per share

- 2023-05: HKD 33.30 per share

- 2023-06: HKD 33.00 per share

- 2023-07: HKD 32.05 per share

- 2023-08: HKD 29.10 per share

- 2023-09: HKD 24.95 per share

- 2023-10: HKD 26.20 per share

- 2023-11: HKD 28.50 per share

- 2023-12: HKD 29.05 per share

- 2024-01: HKD 24.20 per share

- 2024-02: HKD 24.20 per share

- 2024-03: HKD 24.65 per share

- 2024-04: HKD 26.40 per share

- 2024-05: HKD 27.20 per share

- 2024-06: HKD 23.80 per share

- 2024-07: HKD 24.40 per share

- 2024-08: HKD 25.05 per share

- 2024-09: HKD 26.80 per share

- 2024-10: HKD 23.00 per share

- 2024-11: HKD 22.25 per share

- 2024-12: HKD 22.45 per share

- 2025-01: HKD 21.30 per share

- 2025-02: HKD 21.75 per share

- 2025-03: HKD 21.70 per share

- 2025-04: HKD 20.95 per share

- 2025-05: HKD 21.25 per share

- 2025-06: HKD 22.55 per share

- 2025-07: HKD 23.50 per share

- 2025-08: HKD 24.76 per share

- 2025-09: HKD 25.40 per share

- 2025-10: HKD 27.22 per share

- 2025-11: HKD 28.06 per share

- 2025-12: HKD 27.90 per share

- 2026-01: HKD 28.30 per share

- 2026-02: HKD 29.18 per share

- 2026-03: HKD 27.50 per share

- 2026-04: HKD 26.68 per share

- 2026-05: HKD 24.34 per share

- 2026-06: HKD 21.74 per share

- 2026-07: HKD 24.76 per share

- 2026-08: HKD 22.10 per share

- 2026-09: HKD 19.66 per share

- 2026-10: HKD 20.02 per share

## Annual estimated value (HKD per share)

- FY2016: low HKD 59.34 per share, central HKD 80.08 per share, high HKD 91.65 per share

- FY2017: low HKD 52.63 per share, central HKD 57.54 per share, high HKD 64.08 per share

- FY2018: low HKD 72.16 per share, central HKD 94.14 per share, high HKD 106.94 per share

- FY2019: low HKD 73.29 per share, central HKD 92.36 per share, high HKD 104.83 per share

- FY2020: low HKD 74.74 per share, central HKD 95.61 per share, high HKD 108.69 per share

- FY2021: low HKD 65.30 per share, central HKD 77.58 per share, high HKD 87.57 per share

- FY2022: low HKD 61.73 per share, central HKD 67.70 per share, high HKD 75.65 per share

- FY2023: low HKD 59.53 per share, central HKD 65.26 per share, high HKD 72.89 per share

- FY2024: low HKD 42.48 per share, central HKD 46.37 per share, high HKD 51.55 per share

- FY2025: low HKD 44.11 per share, central HKD 48.04 per share, high HKD 53.27 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:45:10.486Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.