Elevator Pitch
Hong Kong-listed Health and Happiness International Holdings Limited (BTSDF) [1112:HK], or H&H, is currently trading at 13.1 times consensus forward FY2019 P/E representing a significant discount to the stock's 10-year historical forward P/E of approximately 20 times.
While H&H's valuations seem appealing, the company faces headwinds for both its Baby Nutrition & Care and Adult Nutrition & Care businesses which hurt its share price. H&H's share price is down -26.7% year-to-date (excluding dividends) versus a -0.6% decline for the benchmark Hong Kong Hang Seng index over the same period.
The Baby