By Martin Mou

Hengan International Group Co. said Wednesday its first-half net profit rose 20% compared with the same period a year earlier as historically low wood-pulp prices boosted its profit margin.

Net profit grew to 2.26 billion yuan ($326.5 million), as its gross profit margin expanded to 44.1% from 37.3% in the year-ago period, said the Chinese company.

First-half revenue ticked up 1.4% to CNY10.93 billion, said Hengan, which makes personal hygiene products, including tissues and sanitary napkins.

Noting prices of wood pulp, a key raw material for its products, could remain low in the second half of the year, Hengan said it expects its gross profit margin to improve further.

The company said it will continue its core strategy centered on developing premium products with high margins. 



  Write to Martin Mou at martin.mou@wsj.com