Hengan International Group Company Limited (1044.HK) stock analysis

In our weekly check, Hengan International Group Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5.

About Hengan International Group Company Limited

Hengan International Group Company Limited is a Consumer Defensive company (Household & Personal Products) based in China, listed on HKSE as 1044.HK.

What our checks show for 1044.HK

Red flags

• Operating profit covers interest only 1.8 times: a weak year could make the payments hard.
• The net margin fell by 4.8 points over 5 years, to 11%: the company keeps less of each sale as profit.
• The gross margin fell by 3.5 points, to 33.8%: costs are rising faster than prices.
• The dividend takes 418% of profit: little cushion if profit falls.
• The stock has fallen as much as 81% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 1.1% a year of growth in revenue.
• Revenue grew only 0.7% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 1.28x net profit: the profit arrives as real cash.
• Earnings per share grew 10.3% a year over the last 3 years.
• Beta 0.56: the stock usually moves less than the market.
• Actively traded: about 5.1 million shares a day.
• Pay in shares is only 0.1% of free cash flow.

Similar companies

CHD · HEN3.DE · BEI.DE · RKT.L · KMB · KVUE

Questions

What grade does Hengan International Group Company Limited (1044.HK) have?

In our weekly check, Hengan International Group Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1044.HK stock?

This week's biggest flags for Hengan International Group Company Limited: Weak interest cover, Margins falling, Gross margin falling. In total 8 of 25 checks show a warning or a red flag.

What does Hengan International Group Company Limited do?

Hengan International Group Company Limited is a Consumer Defensive company (Household & Personal Products) based in China, listed on HKSE as 1044.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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