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Hengan International Group (1044) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$25.0B

HI Hengan International Group 1044 · HK
PriceHK$24.18
Fair ValueHK$53.81
Upside+122.5%
Quality63/100
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Weak Growth
Solidly profitable · 11.0% net margin
Low debt · generates free cash flow
6.36% dividend yield
Ranks above peers (12/15)
Moderate moat 49/100
Evidence: High Range HK$40.36 – HK$67.26 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated today

Fair value updated Aug 13, 2026, revised from HK$53.75 to HK$53.81 (+0.1%) since Aug 5, 2026. Share price +4.4% over the past month.

A solid business, screening 123% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$40.36). The market is more pessimistic than our downside scenario.
  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$41.11 HK$18.16 Fair Value HK$53.81 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$18.16 – HK$41.11 · fair‑value band HK$40.36 – HK$67.26 · the HK$24.18 price screens below the HK$53.81 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hengan International Group (1044) currently trades at HK$24.18, while our model-based Fair Value estimate is HK$53.81, implying the stock looks roughly 122.5% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Hengan International Group generated revenue of HK$23.1B at a net margin of 11.0%. Revenue grew 3.9% year over year. It earns a return on equity of 11.8%. Net debt stands at HK$145M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$40.36 (bear case) to HK$67.26 (bull case); at HK$24.18, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 17% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -38% fair-value upside, at 123%, 1044 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$36.37 HK$50.74 HK$73.70 80
Residual Income HK$17.36 HK$20.34 HK$40.12 76
Rev-Margin DCF HK$34.62 HK$48.31 HK$64.82 74
All 24 models by family
DCF Models
FCF DCF HK$36.19 HK$50.93 HK$74.61 38
Owner Earnings HK$39.76 HK$56.83 HK$84.23 31
5Y Revenue Exit HK$34.62 HK$48.43 HK$66.45 39
5Y EBITDA Exit HK$44.10 HK$66.86 HK$94.28 41
5Y P/E Exit HK$41.88 HK$62.53 HK$85.00 38
10Y Revenue Exit HK$34.29 HK$47.26 HK$65.55 36
10Y EBITDA Exit HK$41.10 HK$60.32 HK$87.56 37
10Y P/E Exit HK$39.66 HK$57.25 HK$80.22 35
Earnings-Based
Graham-Dodd HK$14.98 HK$55.36 HK$74.79 54
Lynch FV HK$13.26 HK$18.95 HK$24.63 50
PEG = 1.0 HK$13.26 HK$18.95 HK$24.63 46
EPV HK$36.75 HK$40.63 HK$44.03 59
Multiples
P/E Multiple HK$34.70 HK$46.27 HK$57.83 63
P/S Multiple HK$24.06 HK$32.08 HK$40.10 58
P/B Multiple HK$28.09 HK$37.45 HK$46.82 55
EV/EBIT HK$52.08 HK$64.95 HK$77.82 53
EV/EBITDA HK$51.91 HK$64.72 HK$77.53 54
EV/Revenue HK$34.53 HK$43.55 HK$52.57 43
Asset-Based
NCAV (Graham) HK$9.46 HK$12.67 HK$18.91 50
Growth DCF
Growth DCF HK$36.37 HK$50.74 HK$73.70 80
Rev-Margin DCF HK$34.62 HK$48.31 HK$64.82 74
Economic Profit
Residual Income HK$17.36 HK$20.34 HK$40.12 76
ROIC Compounder HK$38.43 HK$44.68 HK$51.71 72
Growth Earnings
Growth-Adj P/E HK$24.73 HK$35.33 HK$45.93 68

Widest divergence: DCF Models (HK$56.83) versus Asset-Based (HK$12.67). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$23.1B
Revenue growth (YoY) +3.9%
Net margin 11.0%
Return on equity 11.8%
Free cash flow HK$2.2B FY2025
P/E ratio 8.5 as of Jul 2, 2026
More key figures
Operating margin 10.5%
EPS (TTM) HK$1.21
Dividend yield 6.4%
EPS growth (YoY) +30.8%
Net debt HK$145M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 60 · Market factors (momentum, volatility) 54

Profitability 42
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 69
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 42
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hengan International Group reported revenue of HK$23.1B in FY2025 versus HK$20.8B in FY2021, a compound +2.6%/yr. Reported net income was HK$2.5B in FY2025, compounding −6.2%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$23.1B
Latest YoY
+1.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.6%
Avg. growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.5%
Revenue +2.6%/yr
FY21 HK$20.8B
FY22 HK$22.6B
FY23 HK$23.8B
FY24 HK$22.7B
FY25 HK$23.1B
Net income −6.2%/yr
FY21 HK$3.3B
FY22 HK$1.9B
FY23 HK$2.8B
FY24 HK$2.3B
FY25 HK$2.5B
Character of growth · EPS growth decomposed (2014-2025) −2.4 % p.a.
Revenue per share +3.0 pp

of which total revenue +2.2 pp · buybacks/dilution +0.7 pp

EBIT margin −4.8 pp
Tax rate +0.5 pp
Residual (interest, one-offs) −1.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Hengan International Group Fair Value". https://www.fairvalue-calculator.com/stock/1044

Peer Group

Household & Personal Products · 251 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Above median
Fair Value upside +123% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 4% · Above median
Net margin (TTM) 11% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth 4% · Above median
Dividend yield (TTM) 6.4% · Top 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Household & Personal Products median · lower = cheaper

P/E (TTM) 8.5× · Cheaper than 75% of peers
P/B 1.15× · Cheaper than median
P/S (TTM) 1.08× · Pricier than median
P/FCF 1.5× · Pricier than median
EV/EBITDA 2.4× · Cheaper than 75% of peers
PEG 3.18× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 27
FUTURE 20 · sector 4
PAST 47 · sector 27
HEALTH 100 · sector 98
DIVIDEND 100 · sector 50

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Household & Personal Products stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
The Procter & Gamble Company PG $146.80 $108.16 -26%
Unilever PLC ULN 1,080 MXN 973.58 MXN -10%
Hindustan Unilever Limited HINDUNILVR ₹2,063 ₹789.46 -62%
Essity AB ESSITYA kr 276.50 kr 250.02 -10%
Godrej Consumer Products Limited GODREJCP ₹936.90 ₹367.64 -61%
Marico Limited MARICO ₹855.00 ₹233.05 -73%
APR Co 278470 397,000 KRW 137,521 KRW -65%
Dabur India Limited DABUR ₹411.25 ₹175.59 -57%
PT Unilever Indonesia Tbk UNVR 1,760 IDR 1,928 IDR +10%
Amorepacific Corporation 090430 135,700 KRW 84,785 KRW -38%

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Frequently asked questions

Is Hengan International Group (1044) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$53.81 versus a price of HK$24.18, about +123% (undervalued).
What is the fair value of 1044?
Our model-based fair value for Hengan International Group is HK$53.81 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$24.18.
What is the quality score of 1044?
Hengan International Group has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hengan International Group (1044)?
Hengan International Group reported trailing-twelve-month revenue of about HK$23.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1044?
The net profit margin of Hengan International Group is about 11.0%, meaning it keeps roughly 11.0% of revenue as net income. Based on the latest reported figures.
Does Hengan International Group pay a dividend?
Hengan International Group currently shows a dividend yield of about 6.36% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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