Haw Par Corp

I was reading one of the articles posted in Finance.sg on Haw Par Corp and decided that its timely to provide an update on the company’s performance in Q2 2013. As mentioned in my article in June, Haw Par Corp is a financially strong company. In terms of asset value, it is currently trading at estimate 31% discount. As of 1 Oct 2013, the net asset value is $10.73 but it share price is only $7.40! This is definitely a value stock with good business fundamentals.

Many Singaporeans can probably relate Haw Par Corp as the manufacturer of the famous Tiger Balm but how many investors know that it also owns the famous Underwater World at Sentosa? I like this company because it had been consistently giving out dividends for the past 20 years. The company is cash rich, is financially strong and is trading at below net asset value. However, this counter has risen in value so much for the past two years that it is beyond my entry price, which is $4.00. Looks like I have to wait until the next stock market crash to load up this overlooked stock in SGX.

The original business of manufacturing and distributing through Southeast Asia pharmaceuticals under the Tiger Brand names, the best known of which is ‘Tiger Balm’, was founded at the turn of the century. This was subsequently incorporated under the name, Haw Par Brothers (Pte) Ltd and in 1969, Haw Par Brothers Intl Ltd was formed to acquire the main part of that business. The Company took on its present name, Haw Par Corporation Ltd in December 1997.

In the seventies and eighties, it has grown into a conglomerate with diversified interests.
The Group’s core business in healthcare and leisure products promotes healthy lifestyles through its health products, Haw Par’s healthcare products are manufactured and marketed under its established Tiger Balm and Kwan Loong brands. Its renowned ointment Tiger Balm and product extensions are used throughout the world to invigorate the body as well as to soothe away aches and pains.

The Group owns and operates 2 oceanariums – the popular Underwater World oceanarium attraction at Sentosa, Singapore and Underwater World Pattaya in Thailand. A third oceanarium in Chengdu, China, is under construction.

Besides healthcare and leisure products, the Group has interests in investment properties and manages its own portfolio of long-term and short-term investments in securities.

One of the Group’s primary corporate strategies is to expand its core healthcare and leisure businesses, including product extensions under its own established brands, forming strategic alliances with overseas partners in various key markets and acquisition of suitable businesses. It also aims to manage efficiently its portfolio of investments in properties as well as long-term and short-term securities to achieve a reasonable return.

Magically yours,

SG Wealth Builder