Company Profile
Hengan founded in 1985, is a famous manufacturer of household paper and maternal &
child hygiene products. The market shares of the three leading products, namely women’s
sanitary napkins, baby diapers, and household tissues, is among the best in the domestic
market.
1H2022 sales bucked the trend and achieved growth of over 10%
For the six months ended 30 June 2022 (1H2022), Hengan’s revenue increased by about
12.3% to RMB11,200.021mn, above market expectation. During the period, operating profit
fell about 25.8% to RMB1885.753mn (1H2021: RMB2540.583mn). Although the Hengan’s
sales bucked the trend and achieved growth of over 10%, the striking depreciation of the
RMB against the US dollar and HK$ during the period resulted in a significant foreign
exchange loss in the Hengan’s operations (RMB367.797mn). Therefore, profit attributable to
shareholders was RMB1,276.191mn (1H2021: RMB1,860.292mn), representing a decrease
of 31.4% YoY. If deducting the operating foreign exchange loss, profit attributable to
shareholders decreased by 10.9% YoY instead. Basic EPS was RMB1.098 (1H2021:
RMB1.574), with an interim dividend decreased by 30% YoY to RMB0.70 per share (1H2021:
RMB1.00).