by winston » Wed Mar 25, 2015 6:34 am
Hengan in paper chase
China's largest diaper maker Hengan International Group (1044) saw net profit rise 5.2 percent last year to HK$3.92 billion, thanks to a quick turnaround in the second half after a slip of 4.5 percent in the first.
Total revenue rose 12.5 percent to HK$23.83 billion, thanks to stable growth in sales of tissue paper as well as surging sales of sanitary napkin.
Tissue paper sales, making up 45.6 percent of the total, rose 6.4 percent, while sales of sanitary napkins jumped 24.4 percent, making up 31.2 percent of the total.
Sales of disposable diapers rose just 5.3 percent while food and snacks products sales slid 4.4 percent due to intense competition.
Earnings per share increased to HK$3.18 and a final dividend of HK$1.15 was proposed, compared with HK$1 a year back.
The gross profit margin rose to 46.1 percent from 45.1 percent, thanks to a decrease in raw material prices.
Chief operating officer Xu Shuishen said the price of the tissue wood pulp in China will continue to drop this year, which will push up the gross profit margin further. But the firm will not cut the price of tissue paper.
Chief financial officer Vincent Loo Hong- shing expects capital expenditure to go down this year from HK$1.8 billion last year.
With over HK$132.26 million in foreign exchange losses, the firm is considering converting yuan assets into Hong Kong dollars.
Hengan shares rose 2.34 percent to HK$87.50 yesterday.
Source: The Standard HK
It's all about "how much you made when you were right" & "how little you lost when you were wrong"