China's Hengan International H1 revenue falls 6.1% on promotional competition

Hengan International

19/08/2026 05:40

Overview
China personal hygiene products maker's H1 2026 revenue fell 6.1% yr/yr
Net income attributable to shareholders dropped 8.7% yr/yr
Company repurchased 5.5 mln shares, raising treasury shares to 6.8 mln

Outlook
Hengan International strives to maintain stable full-year revenue through omni-channel optimisation, brand promotion and targeted promotions
Company expects full-year revenue to stay stable, backed by premium mix, brand rejuvenation and omni-channel momentum

Result Drivers
PROMOTIONAL COMPETITION – Intense domestic promotions pressured sales, cutting revenue 6.1% yr/yr to RMB11.1 bln
PREMIUM PRODUCT MIX - Easing raw material prices and a higher proportion of premium high-margin products lifted gross margin to 35.3% from 32.3%
E-COMMERCE CHANNEL GROWTH – E-commerce and new-retail sales rose 4.6% to over RMB4.25 bln, reaching 38.3% of total sales

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 11.09 bln
 
H1 Net Income Attributable
 
RMB 1.25 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal products peer group is "buy."
Wall Street's median 12-month price target for Hengan International Group Company Limited is HK$27.10, about 13.8% above its August 18 closing price of HK$23.82
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 17 - China's Hisense Home Appliances H1 revenue falls amid subdued domestic demand
Aug 18 - China's TH International Q2 revenue falls on store closures
Aug 18 - China's 361 Degrees International interim revenue rises 8%

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-19/856315a2-caf6-41a1-be97-c3a1dda758ab.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)