Haw Par Corporation – Valuation Analysis

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Haw Par Corporation (HPC) is a conglomerate involved in 3 main segments: Healthcare, Leisure and Investments. Its healthcare products are manufactured under the Tiger Balm and Kwan Loong Brand. The Group also owns and operates 2 aquariums in Sentosa and Pattaya. Additionally, they manage a portfolio of investment properties and securities. We have the following investment thesis:

  1. Equity Investments worth SGD2,126m exceeds Haw Par Corporations current market capitalisation of SGD1,879m.
  2. Highly stable Healthcare business of household-brands analgesics with highly profitable and strong cash-flow generation, 10-year average ROA and FCF/Total Assets of 29.0% and 26.1% respectively. Tiger Balm and Kwan Loong Oil is ranked 2nd and 5th respectively within Singapore’s analgesics space.
  3. SGD223.6m property portfolio and Equity Investments provides a stable and recurring source of income.

The full report can be found below and free to be downloaded via Scribd.

Haw Par Corporation

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I developed my passion for investment management especially equity research at a relatively young age. My investment journey began when I was 20, at a point in time where markets were still recovering from the Global Financial Crisis. My portfolio started from money I saved over the past years and through working during the holidays. I was fortunate to have a good friend with common investing mentality to began my journey towards value investing. To date, we still research and invest in companies together, discussing valuations and potential risks of a company. To date, I manage a fund with a value investing style. Positions are decided upon via a bottom-up approach or smart speculation (a term I came up with when buying a stock for quick profit due to a mismatch in prices in the market due to takeovers/selling of a subsidiary or associate). Apart from managing my own portfolio, I enjoy sharing my research with family and friends, seeking their opinions and views towards the stock. Reading Economics in London, I constantly keep up with the financial news in Singapore & Hong Kong. Despite my busy schedule, it has not stopped me from enjoying other aspects of life. I enjoy a variety of activities in whatever free time I may have – endurance running, marathons, traveling, fine dining, whiskey appreciation, fashion. Lastly, I enjoy meeting new people, discussing ideas and gaining new perspectives towards issues in the world.