We reduce no-moat Hengan’s 2024 net income projection by 4% due to lower expectations for its tissue segment, which more than offset the improvement in the diaper segment. We think competition in the tissue industry has dampened Hengan’s sales in the first half as lower wood pulp prices allowed smaller players to offer cheap offerings via new retail channels such as video streaming platforms.
As one of the major domestic players, Hengan could benefit from rising per capita consumption of tissue paper in China.
The commoditized nature of tissue products means private-label penetration could be a significant share threat to Hengan.
|
Metric
|
01044
|
KMB
|
PG
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.75 | 19.93 | 25.08 |
Price/Book Value | 1.26 | 44.36 | 7.85 |
Price/Sales | 1.07 | 2.29 | 4.82 |
Price/Cash Flow | 9.38 | 15.19 | 19.98 |
|
Metric
|
01044
|
KMB
|
PG
|
|---|---|---|---|
Quick Ratio | 1.18 | 0.47 | 0.40 |
Current Ratio | 1.41 | 0.81 | 0.69 |
Interest Coverage | 5.15 | 8.07 | 20.73 |
|
Metric
|
01044
|
KMB
|
PG
|
|---|---|---|---|
Return on Assets (Normalized) | 6.57% | 13.44% | 13.82% |
Return on Equity (Normalized) | 14.47% | 303.53% | 35.61% |
Return on Invested Capital (Normalized) | 6.75% | 27.67% | 20.62% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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KMB
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CHD
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