Haitong International has initiated coverage on H&H INTL HLDG (01112) with an "Outperform" rating and a target price of HK$17. The company operates across three key segments: Baby Nutrition & Care (BNC), Adult Natural Health Nutrition & Care (ANC), and Pet Nutrition & Care (PNC). In the first three quarters of 2025, H&H demonstrated robust growth across all business lines, driven by its successful premiumization strategy and multi-brand synergy, which supports its global expansion.

**Leadership in Premium Family Health & Nutrition Products** H&H (Health and Happiness Group) is a global leader in premium family nutrition and health products. Established in 1999 and headquartered in Hong Kong, the company went public on the Hong Kong Stock Exchange in 2010. With a mission to "make people healthier and happier," H&H operates in over 20 countries and regions, offering products under renowned brands such as Biostime, Swisse, and Solid Gold. Through strategic acquisitions, the group has established R&D and production centers in Australia, France, and the U.S.

**ANC Business Shows Steady Growth in China; Swisse Leads Market Share in China and Australia** Swisse, an Australian-origin global health brand founded in 1969 by Kevin Ring, initially focused on vitamin tablets before expanding into minerals, herbal supplements, and functional foods. In Q1-Q3 2025, H&H’s ANC segment generated revenue of RMB5.24 billion, up 6.0% YoY, with Q3 alone contributing RMB1.80 billion (+6.3% YoY). Despite a slowdown in the broader industry, ANC has demonstrated resilience and growth potential, supporting the group’s overall performance.

**Biostime Exceeds Recovery Expectations; Infant Formula Drives Strong Growth** Biostime, H&H’s core maternal and infant nutrition brand, has focused on baby nutrition since its inception in 1999. Its dual-product strategy—combining infant formula and nutritional supplements—targets high-value segments like immunity and allergy relief. In Q1-Q3 2025, BNC revenue surged 24.0% YoY to RMB3.97 billion, with Q3 revenue jumping 90.6% YoY to RMB1.47 billion. Infant formula was the primary growth driver, with Q1-Q3 sales up 33.3% YoY and Q3 sales soaring 104.0% YoY.

**Premiumization Strategy Fuels PNC Growth** Solid Gold, a pioneer in U.S. pet nutrition since 1974, offers natural, science-backed functional pet food, including high-protein, gut health, and immune-boosting lines. Zesty Paws, a U.S. pet health snack brand, provides natural functional supplements for joint, skin/coat, and digestive health. H&H’s PNC segment posted steady Q1-Q3 revenue of RMB1.59 billion (+8.2% YoY), with Q3 revenue at RMB510 million (+7.2% YoY).

**Risks**: Intensified competition, weaker-than-expected consumer demand, and food safety issues.