Elevator Pitch

I retain a Neutral” rating on Hong Kong-listed global family nutrition and wellness company Health and Happiness International Holdings Limited (OTC:BTSDF) (OTC:BTSDY) [1112:HK], or H&H.

This is an update of my prior article on H&H published on April 24, 2020. H&H’s share price has increased by +17% from HK$28.30 as of April 23, 2020 to HK$33.20 as of September 28, 2020, since my last update. H&H trades at 13.3 times consensus forward FY 2021 P/E, and it offers a consensus forward FY 2021 dividend yield of 3.8%.

H&H reinitiates interim dividend payout for the first time since FY 2014, as the company’s operating cash flow grew and its net leverage ratio decreased in 1H 2020. I see this as a positive sign that H&H is confident in the company’s future performance and growth prospects. Nevertheless, I will not upgrade the rating on the stock to Bullish, until I