TICKER H02.SI
ISIN SG1D25001158
Market cap. SGD
3,679,139,035
Shs outstanding 221,368,173

website

Haw Par Corporation Limited, together with its subsidiaries, manufactures, markets, and trades in healthcare products in Singapore, ASEAN countries, other Asian countries, and internationally. The company operates through three segments: Healthcare, Investments, and Others. The Healthcare segment principally manufactures and distributes topical analgesic products under the Tiger Balm and Kwan Loong brand. Its Investments segment invests primarily in quoted securities. In addition, the company owns and leases various investment properties that have lettable area of 45,324 square meters of commercial and industrial space in Singapore and Malaysia. Further, the company provides family and tourist oriented leisure alternatives principally in the form of oceanariums. Haw Par Corporation Limited leases land, building, and office space, as well as offers management support services. The company was incorporated in 1969 and is based in Singapore.

Strategy:

Return at exit: 3.2%
Valuation concerns after strong rally
• Rotated out as other opportunities show stronger near-term potential following Haw Par’s impressive 57% one-year run. • Stock is trading near its 52-week high (98.25%) with recent momentum cooling (weekly return of -0.7%), suggesting potential for increased volatility. • PEG ratio of 2.0 indicates the stock may be relatively expensive compared to its growth rate, despite trading below analyst fair value estimates. • Management has cautioned about “weaker consumer spending” affecting operating businesses, while EBITDA declined by 2% over the last twelve months. • Strong fundamentals remain intact with healthy margins (56% gross profit, 26% operating) and solid revenue growth of ~6%. This change reflects portfolio rotation, not a sell signal.
Strategies