Haw Par (H02) AI Stock Analysis

• Market Cap: S$3.61B
• Dividend Yield: 8.96%
• Average Volume (3M): 144.52K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.64
• Revenue Growth: 5.85%
• EPS Growth: 6.82%
• Country: SG
• Employees: 595
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.65
• Shares Outstanding: 221,368,180
• 10 Day Avg. Volume: 160,760
• 30 Day Avg. Volume: 144,516
• PEG Ratio: 2.12
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 10.08
• P/FCF Ratio: 49.05
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: S$17.00 ▲(4.36% Upside)

Haw Par's strong financial performance, characterized by high profitability and a solid balance sheet, is the most significant factor contributing to its score. The technical analysis indicates a positive trend, and the valuation is attractive with a reasonable P/E ratio and high dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Brand Reputation

A strong brand reputation and loyal customer base for Tiger Balm help sustain sales and provide a competitive advantage in the healthcare market.

Solid Balance Sheet

A strong balance sheet with low debt levels ensures financial stability and flexibility, enabling the company to invest in growth opportunities.

High Profitability

High profitability indicates efficient operations and cost management, supporting sustainable growth and shareholder returns.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit the company's ability to invest in new projects and manage financial obligations, impacting long-term growth.

Potential Cost Pressures

A decline in gross profit margin suggests potential cost pressures, which could affect profitability if not managed effectively.

Moderate Return on Equity

Moderate return on equity indicates that the company may not be utilizing its equity as efficiently as possible, which could impact long-term growth potential.

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 generates revenue primarily through the sale of its healthcare products, with Tiger Balm being a significant contributor to its earnings. The company benefits from a strong brand reputation and a loyal customer base, which helps sustain its sales. Additionally, revenue is supplemented by its investments in leisure properties, including theme parks and real estate holdings, which provide rental income. Strategic partnerships with distributors and retailers also play a crucial role in expanding the company's market presence and driving sales. Furthermore, the company's focus on innovation and product development helps maintain competitive advantage and attract new customers.

Haw Par Financial Statement Overview

Summary

Haw Par exhibits strong financial health with high profitability and a solid balance sheet. The company maintains a robust balance sheet with minimal leverage and financial risk. However, the decline in free cash flow growth warrants attention.

Income Statement

Haw Par demonstrates strong profitability with a high net profit margin of 93.24% and consistent revenue growth over the years. The gross profit margin is solid at 54.77%, indicating efficient cost management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a robust balance sheet with a very low debt-to-equity ratio of 0.0087, indicating minimal leverage and financial risk. The return on equity is moderate at 5.50%, reflecting efficient use of equity. The equity ratio is strong, highlighting financial stability.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth by 8.97%, which could be a concern. However, the free cash flow to net income ratio is high at 93.57%, indicating effective cash generation relative to earnings. The operating cash flow to net income ratio is moderate, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	253.05M	244.82M	232.06M	182.09M	141.18M	111.03M
Gross Profit	141.07M	134.09M	134.89M	98.57M	73.64M	48.83M
EBITDA	252.22M	250.11M	233.49M	49.06M	119.45M	127.31M
Net Income	250.42M	228.27M	216.57M	148.32M	110.10M	119.77M
Balance Sheet
Total Assets	4.21B	4.28B	3.59B	3.65B	3.28B	2.95B
Cash, Cash Equivalents and Short-Term Investments	3.95B	3.93B	3.21B	3.18B	596.23M	554.41M
Total Debt	33.99M	36.30M	28.48M	58.40M	762.00K	892.00K
Total Liabilities	125.21M	128.47M	117.17M	101.41M	72.08M	64.00M
Stockholders Equity	4.08B	4.15B	3.48B	3.55B	3.21B	2.89B
Cash Flow
Free Cash Flow	61.65M	50.33M	54.92M	21.21M	14.46M	17.49M
Operating Cash Flow	64.01M	53.79M	62.68M	40.94M	18.84M	25.03M
Investing Cash Flow	467.65M	199.82M	258.00M	-261.58M	87.52M	138.09M
Financing Cash Flow	-312.00M	-82.79M	-79.30M	-38.07M	-65.11M	-73.80M

Haw Par Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:H02, the sentiment is Positive. The current price of 16.29 is above the 20-day moving average (MA) of 15.76, above the 50-day MA of 15.48, and above the 200-day MA of 13.54, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 67.46 is Neutral, neither overbought nor oversold. The STOCH value of 94.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:H02.

Haw Par Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H02	79 Outperform	S$3.61B	14.40	6.37%	8.96%	5.85%	6.82%
BSL	67 Neutral	S$1.90B	29.45	6.20%	2.45%	8.90%	4.57%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
A50	46 Neutral	S$1.67B	-35.00	-9.99%	―	12.39%	-400.00%

Haw Par Corporate Events

Haw Par Subsidiary Underwater World Singapore Struck Off Company Register

Haw Par Corporation Limited has announced that its indirect wholly owned subsidiary, Underwater World Singapore Pte Ltd, has been officially struck off the Register of Companies by Singapore’s Accounting and Corporate Regulatory Authority, following an application made under Section 344A of the Companies Act 1967. The company stated that the removal of this dormant entity is not expected to have any material impact on the group’s earnings per share or net asset value per share for the financial year ending 31 December 2025, indicating that the move is largely an administrative streamlining of its corporate structure with minimal implications for shareholders and operations.

The most recent analyst rating on (SG:H02) stock is a Buy with a S$17.00 price target. To see the full list of analyst forecasts on Haw Par stock, see the SG:H02 Stock Forecast page.