Hengan International Group Co Ltd

01044: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$36.00	Fmhpq	Ddbzjdvdc

Sanitary Napkin Segment Margin Remains a Longer-Term Concern

Jacky Tsang

Aug 24, 2023

Business Strategy and Outlook

Hengan operates in the tissue, sanitary napkin, and diaper markets in China and is one of the leading brands in tissue and sanitary napkins. Being one of the early movers in personal-care products, it has developed an extensive offline distribution network in China. It has also penetrated lower-tier cities, which contributed close to 80% of its sales in 2021. With its focus in lower-tier cities, the majority of the company’s products sit in the mass market below-premium segments.

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