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Founded in 1985, Hengan International Group Co Ltd (HEGIY) is a leading personal care product manufacturer in China.

Its business comprises tissue paper products (54% of sales), sanitary napkins (27% of sales), disposable diapers (5% of sales), and others.

In addition, the company manufactures and distributes heat and power; and manufactures, distributes, and sells gas, protective equipment, medical instruments, skin care products, antiseptics, and household products.

Hengan International Group Company Limited is headquartered in Jinjiang, the People's Republic of China.

Three key data points gauge Hengan International Group Co Ltd or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

HEGIY Price

Over the past year, Hengan share price dropped  20.00% from $22.75 to $18.20 as of Tuesday’s market close.

If Hengan’s stock trades in the range of $15.00 to $30.00 this next year, its recent $18.20 share price might rise to $20.00 by next year. Of course, HEGIY’s price could drop about the same $1.80 estimated amount or more.

My upside estimate of $1.80, however, is opposite the falling trend of prices of the past year for HEGIY.
 

HEGIY Dividend

Hengan International has paid variable semi-annual dividends since June 15, 2011. HEGIYs most recent Q dividend, payable October 27th to shareholders of record September 15th, is $0.49. Its annual dividend payout of $1.00 is projected to yield 5.49% per Tuesday’s closing price.
 

HEGIV Returns

Adding the $1.00 anticipated annual dividend to Hengan International’s estimated $1.80 possible price upside reveals a $2.80 potential gross gain per share for the coming year.

At Tuesday’s $18.20 closing price, a little over $1000 would buy 55 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.18 per share.

Subtracting that maybe $0.18 brokerage cost from my estimated $2.80 gross gain per share makes a net gain of $2.62 X 55 shares = $144.10 or about a 14.4% net gain.

This may be the time to pounce on Hengan International Group Co Ltd shares. But beware, HEGIY is a Chinese paper products heat and power company doing business in a non-capitalist environment. However, the estimated $54.90 dividend from $1000 invested comes in at just over 3 times the recent $18.20 single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

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