Investment Rating - The report maintains a "Buy" rating for H&H International Holdings [11] Core Views - H&H International Holdings reported a revenue increase of 4.9% year-on-year for H1 2025, with adjusted comparable net profit rising by 4.6%, aligning with previous guidance [11] - The company is expanding its ANC business through online channels and overseas markets, solidifying its industry-leading position, while the BNC business is improving with a rise in ultra-premium infant formula market share [11] - Despite pressure on apparent profits, the company is optimizing its capital structure, which is expected to accelerate debt reduction in the future [11] Financial Performance - For H1 2025, the company achieved a revenue of 7.019 billion yuan, a year-on-year increase of 4.9%, and an adjusted comparable net profit of 363 million yuan, a year-on-year increase of 4.6% [5][11] - The adjusted EBITDA for H1 2025 was 1.101 billion yuan, reflecting a decrease of 3.4% year-on-year, with an adjusted EBITDA margin of 15.7% [5][11] - The company plans to distribute an interim dividend of 0.19 HKD per share, totaling 109 million yuan [5] Business Segment Performance - ANC business grew by 5.0% year-on-year in H1 2025, with significant growth in the Chinese mainland market, particularly through the Swisse brand [5][11] - BNC business saw a 2.9% increase year-on-year, with the ultra-premium infant formula market share reaching a historical high of 15.9% in the Chinese mainland [5][11] - PNC business reported a 9.6% year-on-year increase, with improved profitability driven by margin enhancements [5][11] Future Outlook - The company expects continued growth in the second half of 2025, with Swisse focusing on product innovation and online channel expansion [6][11] - The BNC segment is anticipated to benefit from the transition to new national standards and the ongoing recovery in infant formula sales [6][11] - PNC is expected to maintain its growth trajectory, particularly in the North American market [6][11] Financial Projections - EPS estimates for 2025, 2026, and 2027 are projected at 0.56, 1.03, and 1.26 yuan respectively [11] - The company’s total revenue is expected to reach 14.083 billion yuan in 2025, with a year-on-year growth of 8% [7][11]
H&H国际控股（01112）：H、H国际控股（01112）：Swisse中国区快速增长，婴配粉份额提升