Haw Par (H02) AI Stock Analysis

• Market Cap: $2.58B
• Dividend Yield: 6.7%
• Average Volume (3M): 106.40K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.67
• Revenue Growth: 5.50%
• EPS Growth: 5.41%
• Country: SG
• Employees: 595
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 1.03
• Shares Outstanding: 221,368,180
• 10 Day Avg. Volume: 130,290
• 30 Day Avg. Volume: 106,400
• PEG Ratio: 0.42
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 100.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ―

Haw Par is a strong performer in the drug manufacturing sector, benefiting from robust financial health characterized by high profitability and minimal leverage. The stock's upward technical trends further support its potential for growth. Its valuation remains attractive with a reasonable P/E ratio and a solid dividend yield, making it appealing to both growth and income investors. However, careful monitoring of cash flow generation is advised to ensure sustained operational performance.

Haw Par Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Haw Par Corporation Limited generates revenue primarily through its healthcare segment, with the Tiger Balm brand being a significant contributor. The brand's extensive range of topical analgesic products is sold in over 100 countries, providing a steady income stream. The company's leisure division, which includes the operation of oceanariums and aquariums, also contributes to its earnings through ticket sales and related activities. Furthermore, Haw Par derives income from its property investments and securities holdings, which provide rental income and investment returns. Strategic partnerships and licensing agreements further enhance the company's revenue potential.

Haw Par Financial Statement Overview

Summary

Haw Par's financial health is robust, marked by strong profitability, minimal leverage, and effective cost management. While the company shows potential in revenue growth and maintains a solid balance sheet, slight challenges in cash flow generation require attention. Overall, Haw Par is well-positioned competitively within the drug manufacturing industry.

Income Statement

Haw Par demonstrates a strong income statement with consistent revenue growth, evidenced by a 5.51% increase in the latest year. The company maintains robust profitability metrics with a high net profit margin of 93.22% and a substantial EBIT margin of 26.07%. These indicators showcase Haw Par's effective cost management and revenue generation capabilities within the industry.

Balance Sheet

Haw Par's balance sheet is notably strong, featuring an exceptionally low debt-to-equity ratio of 0.01, highlighting minimal leverage and financial stability. The company's equity ratio of 97.00% reflects a solid capital structure, which is supported by high stockholders' equity. These factors contribute to the company's ability to sustain operations and invest in growth opportunities.

Cash Flow

Haw Par's cash flow statement is positive, with a stable free cash flow and a reasonable free cash flow to net income ratio of 0.22. However, a slight decline in operating cash flow compared to the previous year indicates potential challenges in cash generation from core operations. The company's overall cash reserves remain strong, providing a buffer to support ongoing activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
244.82M	232.06M	182.09M	141.18M	111.03M
	Gross Profit
134.09M	134.89M	98.57M	73.64M	48.83M
	EBIT
63.84M	64.01M	43.38M	24.70M	13.93M
	EBITDA
250.11M	233.49M	49.06M	31.16M	20.47M
	Net Income Common Stockholders
228.27M	216.57M	148.32M	110.10M	119.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.93B	3.21B	334.27M	596.23M	554.41M
	Total Assets
4.28B	3.59B	3.65B	3.28B	2.95B
	Total Debt
36.30M	28.48M	29.20M	762.00K	892.00K
	Net Debt
-709.49M	-545.53M	-305.07M	-595.46M	-553.52M
	Total Liabilities
128.47M	117.17M	101.41M	72.08M	64.00M
	Stockholders Equity
4.15B	3.48B	3.55B	3.21B	2.89B
Cash Flow		Free Cash Flow
50.33M	54.92M	21.21M	14.46M	17.49M
	Operating Cash Flow
53.79M	62.68M	40.94M	18.84M	25.03M
	Investing Cash Flow
199.82M	258.00M	-261.58M	87.52M	138.09M
	Financing Cash Flow
-82.79M	-79.30M	-38.07M	-65.11M	-73.80M

Haw Par Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:H02, the sentiment is Neutral. The current price of 11.64 is below the 20-day moving average (MA) of 11.81, above the 50-day MA of 11.63, and above the 200-day MA of 10.71, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 14.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:H02.

Haw Par Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H02	75 Outperform	$2.58B	11.29	6.02%	6.70%	5.50%	5.41%
Sector *	51 Neutral	$7.32B	0.30	-60.36%	2.39%	17.47%	1.73%
RAFLF		$1.40B	28.96	6.02%	2.65%	―	―
3H5		€766.75M	82.50	0.07%	1.03%	―	―
40T		S$204.24M	15.99	14.45%	2.82%	―	―
5G3		S$598.63M	13.64	50.31%	4.89%	―	―
5WA		S$102.19M	40.00	-2.87%	―	―	―

Haw Par Corporate Events

Haw Par Corporation Convenes 56th Annual General Meeting

Haw Par Corporation Limited held its 56th Annual General Meeting at Parkroyal on Beach Road in Singapore, with key members of the Board of Directors and shareholders in attendance. The meeting commenced with a quorum and was chaired by Mr. Wee Ee Chao, focusing on the formal proceedings as per the circulated notice.