Health And Happiness (H&H)

H&H (1112 HK): Near Term Gloom Not Bad Enough to Lead to Long Term Doom.

Equity Bottom-Up
174 Views, 09 May 2022 02:14
EXECUTIVE SUMMARY
  • Highly leveraged Balance sheet and a USD350 mn bridge loan that needs refinancing, amidst rising interest rates, have alarmed investors, thus driving Health And Happiness (H&H) (1112 HK) stock south.
  • With its core Baby nutrition segment sales declining and Adult, Pet nutrition still in ramp up phase, the going has been tough for H&H as operating margins weakened.
  • Even as its near term concerns seem daunting, long term prospects are good with a diversified premium-brand portfolio that can moderate long term risk to growth from declining birth rate.
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Devi Subhakesan
Asia Consumer Research
Investory
Consumer Discretionary & Consumer StaplesEquity Bottom-UpEquity Capital Markets

Asia Consumer Sector Focus. Special interest - Emerging sector trends. Fundamental Research. Experience: Equity researc... 

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