11月18日，健合（H&H）国际控股有限公司公布 2025 年前九个月未经审核营运数据。报告期内集 团实现营收 108.05 亿元，同比增长 12.3%，成人营养及护理（ANC）、婴幼儿营养及护理（BNC）、 宠物营养及护理（PNC）三大核心业务均保持增长，经营现金流稳健。中国市场仍为主要收入来源，占 比 71.0%，同比提升 20.6%；扩张市场同比增长 19.0%，其中亚洲九个市场增幅达到 64.4%。 截至前三季度，三大业务单元中的营养补充品收入占比 64.5%，依旧是主要增长驱动力。维生素、 草本及矿物补充剂和宠物补充品分别同比增长 6.0% 和 14.2%。 ANC 业务实现营收 52.4 亿元，同比增长 6.0%。Swisse 在中国市场增长 15.7%，电商渠道是主要推 动力，跨境电商销售同比增长 23.1%，抖音渠道同比增长 77.7%。在澳新地区，本地市场同比增长 8.9%，新品与品牌活动带动零售表现；出口业务受代购下滑影响同比下降。多个扩张市场维持双位数 增长，新加坡和意大利部分细分品类继续位列市场前列。 PNC 业务前三季度营收 15.9 亿元，同比增长 8.2%。宠物消费结构升级推动行 ...

Core Insights - H&H International Holdings Limited reported a 12.3% year-on-year revenue growth to 10.805 billion yuan for the first three quarters of 2025, with all three core business units showing robust performance [1] - The Chinese market contributed 71.0% of total revenue, growing by 20.6% year-on-year, while expansion markets saw a remarkable 19.0% growth, with nine Asian expansion markets growing by 64.4% [1] - Nutritional supplements remain the primary revenue driver, accounting for 64.5% of total revenue, with vitamins, herbal and mineral supplements, and pet supplements achieving year-on-year growth of 6.0% and 14.2% respectively [1] Business Unit Performance - The Adult Nutrition and Care (ANC) segment grew by 6.0% year-on-year, driven by double-digit growth in both the Chinese and expansion markets, with ANC revenue reaching 5.24 billion yuan [2] - The Baby Nutrition and Care (BNC) segment saw a 24.0% year-on-year revenue increase, with sales of infant formula in mainland China growing by 35.2%, significantly outperforming the overall market [3] - The Pet Nutrition and Care (PNC) segment achieved an 8.2% year-on-year revenue growth, with Solid Gold maintaining a leading position in North America, growing by 12.4% [2][3] Future Outlook - The company plans to continue investing in scientific innovation and advancing its "whole family nutrition and health" strategy to meet diverse nutritional needs and maintain market leadership [3] - In the ANC segment, the company will focus on product innovation and online channel expansion to adapt to changing consumer trends [4] - The BNC segment will leverage successful e-commerce and offline channels to sustain growth, while the PNC segment will focus on high-end pet food and nutrition products [4]

Core Insights - The Chinese consumer market is shifting from linear growth to a multi-dimensional coexistence, with different generations (X, Y, Z) having distinct preferences and needs [1] - The company, 健合集团, adopts a "whole family nutrition" strategy to address consumer diversification, utilizing brands like 合生元 and Swisse to meet varying health demands across generations [1] - Financial performance supports the robustness of this strategy, with revenue reaching 7.02 billion yuan in the first half of 2025, a year-on-year increase of 5.2%, and a gross margin of 62.5%, up by 1.6 percentage points [1] Financial Performance - The three main business segments show growth: ANC increased by 5.9%, BNC by 2.9%, and PNC by 8.6% [1] - The net operating cash flow amounted to 999.8 million yuan, with cash reserves of 1.83 billion yuan [1] Business Strategy - The multi-business collaboration structure provides the company with balance during industry fluctuations, with adult and pet segments supporting growth as maternal and infant demand recovers [1] - The "multi-brand + multi-scenario" model offers robust support in the context of consumer diversification, indicating a shift in brand competition focus from "single product explosion" to "structural balance" [1]

Core Viewpoint - H&H International Holdings (01112) reported a 5% year-on-year increase in total revenue for H1 2025, amounting to 7.019 billion yuan, with adjusted comparable EBITDA decreasing by 3% to 1.101 billion yuan, and adjusted comparable net profit increasing by 5% to 363 million yuan. The company is expected to see EPS of 0.79, 1.05, and 1.30 yuan for 2025-2027, with a "Buy" investment rating assigned by Huaxin Securities [1]. Revenue and Profitability - The company experienced a year-on-year revenue increase, with a notable improvement in gross margin. The gross margin for H1 2025 rose by 2 percentage points to 62.53%, driven by higher margins in adult and pet nutrition and care products, along with product mix optimization [1]. - The proportion of sales and distribution/administrative expenses relative to revenue increased by 3 percentage points and decreased by 0.4 percentage points to 42.33% and 5.68%, respectively, due to changes in the channel mix for adult nutrition and care products in mainland China and investments in new market expansion strategies [1]. - Adjusted comparable EBITDA margin and adjusted comparable net profit margin decreased by 1 percentage point and 0.02 percentage points to 15.68% and 5.17%, respectively, primarily due to high base effects from the previous year and increased selling expenses [1]. Business Segment Performance - The adult nutrition and care products segment saw a 5% year-on-year revenue increase to 3.439 billion yuan, largely attributed to the outstanding performance of Swisse's innovative anti-aging product line, which grew by 39% compared to the benchmark [2]. - Revenue from infant nutrition and care products increased by 3% year-on-year to 2.501 billion yuan, driven by effective e-commerce channel development and new mother education initiatives in specialty stores. The company successfully transitioned its products to meet new national standards, with the market share of its premium infant formula brand reaching a historical high of 15.9% [2]. - The pet nutrition and care products segment experienced a 10% year-on-year revenue increase to 1.079 billion yuan, with gross margin rising by 12 percentage points to 58.70%. This growth was supported by deepened partnerships in North America and the ongoing high-end upgrade of Solid Gold in mainland China, leading to significant improvements in profitability [2]. Regional and Channel Insights - Revenue from mainland China increased by 9% year-on-year to 4.936 billion yuan, driven by strong growth in adult nutrition and care products and rapid channel expansion. Cross-border e-commerce revenue grew by 18%, with Douyin channel revenue surging by 80%, becoming a key growth engine [3]. - Revenue from Australia and New Zealand decreased by 18% to 801 million yuan, primarily due to a decline in corporate purchasing business [3]. - North American revenue increased by 6% to 862 million yuan, benefiting from the popularity of premium pet nutrition products and a growing pet population, with major retailers like Amazon, Walmart, and PerSmart performing well [3]. - Other regions saw a 17% year-on-year revenue increase to 420 million yuan, with strong growth in the Asian expansion market [3].

Core Viewpoint - H&H International Holdings reported a total revenue of 7.019 billion yuan for H1 2025, reflecting a 5% year-on-year increase, with adjusted comparable EBITDA of 1.101 billion yuan, down 3% year-on-year, and adjusted comparable net profit of 363 million yuan, up 5% year-on-year. The company is expected to see EPS of 0.79, 1.05, and 1.30 yuan for 2025-2027, with a "Buy" investment rating assigned by Huaxin Securities [1]. Revenue and Profitability - The company achieved a gross margin increase of 2 percentage points to 62.53% in H1 2025, driven by improved margins in adult and pet nutrition and care products, along with product mix optimization [1]. - The proportion of sales and distribution/administrative expenses to revenue increased by 3 percentage points and decreased by 0.4 percentage points to 42.33% and 5.68%, respectively, due to changes in the channel mix for adult nutrition and care products in mainland China and investments in new market expansion strategies [1]. - Adjusted comparable EBITDA margin and adjusted comparable net profit margin decreased by 1 percentage point and 0.02 percentage points to 15.68% and 5.17%, respectively, primarily due to high base effects from the previous year and increased selling expenses [1]. Business Segment Performance - In H1 2025, revenue from adult nutrition and care products increased by 5% to 3.439 billion yuan, largely due to the outstanding performance of Swisse's innovative anti-aging product line, which saw a 39% growth compared to the benchmark [2]. - Revenue from infant nutrition and care products rose by 3% to 2.501 billion yuan, supported by effective e-commerce channel development and educational initiatives for new mothers in specialty stores, with the product successfully transitioning to new national standards [2]. - Revenue from pet nutrition and care products increased by 10% to 1.079 billion yuan, with gross margin rising by 12 percentage points to 58.70%, driven by deepened North American channel cooperation and the ongoing high-end upgrade of Solid Gold in mainland China [2]. Regional and Channel Insights - Revenue from mainland China in H1 2025 grew by 9% to 4.936 billion yuan, primarily due to strong growth in adult nutrition and care products and rapid channel expansion, with cross-border e-commerce revenue increasing by 18% and Douyin channel revenue surging by 80% [3]. - Revenue from Australia and New Zealand decreased by 18% to 801 million yuan, mainly due to a decline in corporate purchasing business [3]. - North American revenue increased by 6% to 862 million yuan, benefiting from the popularity of high-end pet nutrition products and the growing pet population, with major retailers like Amazon and Walmart performing well [3]. - Other regions saw a revenue increase of 17% to 420 million yuan, with strong growth in the Asian expansion market [3].

Investment Rating - The report maintains a "Buy" rating for H&H International Holdings (1112.HK) [1][4] Core Views - The company's performance in the first half of 2025 met previous forecasts, with revenue of HKD 7.02 billion, a year-on-year increase of 4.9% [4] - The report highlights the continuous market share growth of the company's infant formula brand, with a significant increase in the ultra-premium segment in mainland China [4] - The report projects total revenue for 2025-2027 to be HKD 14.37 billion, HKD 15.49 billion, and HKD 16.44 billion respectively, with net profit estimates of HKD 676 million, HKD 845.5 million, and HKD 952.9 million [1][4] Revenue and Profit Analysis - In the first half of 2025, the revenue from the ANC (Adult Nutrition and Care) business was HKD 3.44 billion, up 5.0% year-on-year, with mainland China contributing HKD 4.94 billion, a growth of 8.7% [4] - The BNC (Baby Nutrition and Care) segment achieved revenue of HKD 2.50 billion, a 2.9% increase, with a notable 10.0% growth in mainland China [4] - The PNC (Pet Nutrition and Care) business reported revenue of HKD 1.08 billion, reflecting a 9.6% increase, driven by a successful high-end strategy [4] Financial Forecasts - The report forecasts total revenue for 2024A at HKD 13.05 billion, with a projected growth rate of -6.3% [5] - The estimated diluted earnings per share for 2025E is HKD 1.05, with a P/E ratio of 13.27 based on the current price [5] - The report maintains the target price at HKD 16.9, indicating potential upside from the current market price [4][5]

Core Insights - H&H International Holdings Limited reported a 5.2% year-on-year revenue growth to 7.02 billion yuan in the first half of 2025, with the Chinese market contributing 70.3% of total revenue and growing by 8.7% [1] - The company focuses on providing nutrition and health products for families, with all three major business segments—Adult Nutrition and Care (ANC), Baby Nutrition and Care (BNC), and Pet Nutrition and Care (PNC)—showing revenue growth and maintaining a stable adjusted EBITDA margin of 15.7% [1] Business Segment Performance - ANC revenue reached 3.44 billion yuan, up 5.9% year-on-year, with the Chinese market growing by 13.1%. Swisse brand saw a remarkable 38.7% growth, driven by its "Swisse Mega Brand" strategy and expansion into high-end anti-aging products [2] - BNC revenue grew by 2.9% to 2.5 billion yuan, with a 10.0% increase in sales of infant formula in mainland China, significantly outperforming the overall market growth of 0.2%. The market share of the premium infant formula brand, 合生元, increased to 15.9% [3] - PNC revenue reached 1.08 billion yuan, up 8.6%, with high-end pet supplements growing by 14.3%. The brand Solid Gold successfully optimized its channels and product offerings, achieving a 17.5% sales increase [3] Strategic Initiatives - The company plans to enhance innovation and implement a family nutrition health strategy, focusing on different demographic needs. In ANC, it aims to solidify its market position in mainland China and expand into Southeast Asia, India, the Middle East, and Italy [4] - For BNC, the company will leverage e-commerce and maternal channels to drive sales growth, particularly in infant formula, while continuing to educate new mothers as a core strategy [4] - In PNC, Solid Gold will focus on high-end pet food and supplements, enhancing cross-border e-commerce efforts to sustain growth [4] Financial Position - H&H completed refinancing of 297 million USD in senior notes due in 2026, extending debt maturity and reducing overall financing costs. As of June 30, the company had cash reserves of 1.83 billion yuan [4] Leadership Perspective - The CEO emphasized the commitment to maintaining liquidity and supporting future growth while accelerating the development of the three main business segments. The multi-brand and multi-channel strategy is seen as a robust growth support system [5]

Core Insights - The nutritional supplement market is undergoing significant transformation due to rapid economic development and diverse consumer demands [1] - In 2024, the company achieved a total revenue of 13.052 billion yuan, demonstrating the effectiveness of its long-term strategy [1] - The company is actively addressing challenges posed by the transition to new national standards, paving the way for sustainable development [1] Revenue Growth - The nutritional supplement category generated revenue of 8.831 billion yuan, marking a historical high and increasing its share of total revenue from 9% a decade ago to 68% [2] - The adult nutrition care (ANC) segment achieved a year-on-year growth of 8.8%, while the pet nutrition care (PNC) segment grew by 4.4%, both reaching record revenue levels [3] Market Positioning - The company has established a solid business structure across three main segments: adult nutrition care (ANC), infant nutrition care (BNC), and pet nutrition care (PNC) [3] - The Swisse, 合生元, Zesty Paws, and Solid Gold brands are recognized leaders in their respective markets, achieving strong performance both domestically and globally [3] Strategic Developments - The 合生元 brand has strengthened its position in the ultra-premium infant formula market, with market share increasing from 12.4% to 13.3% [4] - The company is actively working on transitioning to new national standard products, expected to be completed by mid-2025, which will support future market expansion [4]