Haw Par (H02) AI Stock Analysis

• Market Cap: S$3.30B
• Dividend Yield: 8.96%
• Average Volume (3M): 144.52K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.74
• Revenue Growth: 5.85%
• EPS Growth: 6.82%
• Country: SG
• Employees: 595
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.55
• Shares Outstanding: 221,368,180
• 10 Day Avg. Volume: 160,760
• 30 Day Avg. Volume: 144,516
• PEG Ratio: 0.79
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 15.10
• P/FCF Ratio: 12.90
• 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: 78 Outperform
• Price Target: S$17.00 ▲(4.36% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven mainly by strong financial strength (very low leverage and improved 2025 cash generation) and supportive valuation/income appeal (moderate P/E and high dividend yield). Offsetting factors are mixed near-term technical momentum and fundamentals to monitor, including the 2025 revenue decline and net margins that appear influenced by non-operating items.

Positive Factors

Conservative balance sheet

Extremely low leverage and steady equity/assets growth give Haw Par durable financial flexibility. This reduces refinancing and solvency risk, enables funding of property upkeep or opportunistic investments internally, and supports consistent shareholder distributions during downturns.

Strengthened cash generation (2025)

Material improvement in 2025 cash generation increases the firm's ability to fund capex, property maintenance, and dividends from operations rather than external financing. Strong FCF relative to net income enhances long-term financial self-sufficiency and operational resilience.

Recognized brand and diversified model

A durable consumer brand (Tiger Balm) plus recurring rental income from property investments create diversified cash streams. Branded OTC product demand tends to be resilient, while property income smooths volatility, reducing reliance on any single segment over the medium term.

Negative Factors

2025 revenue decline

A material top-line contraction in 2025 suggests weakening demand or adverse segment mix that could pressure operating leverage. If revenue recovery is slow, margins, reinvestment capacity, and dividend sustainability may be strained absent offsetting cost or product-market gains.

Earnings quality concerns

Unusually elevated net margins driven by non-operating items reduce confidence that reported profits are repeatable. Reliance on one-offs or investment gains undermines predictability of distributable cash and complicates assessment of sustainable operating performance.

Lumpy historical cash conversion

Although 2025 cash flow improved, prior years had operating cash flow materially below net income, indicating volatile cash conversion. Persistent timing or working-capital swings can impair predictable funding for capex, property upkeep, and dividends across several quarters.

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 makes money primarily through (1) sales of healthcare products and (2) income generated from its investment properties, with additional contributions from its leisure/attractions segment. 1) Healthcare products (consumer healthcare): - Revenue is generated from the manufacturing and/or distribution and sale of branded over-the-counter healthcare products, led by Tiger Balm topical pain relief products (and related variants within the brand). - Earnings are driven by consumer demand for these products in the markets where the company sells them, supported by brand recognition and ongoing marketing, distribution, and retail/pharmacy channels. 2) Property investment: - Revenue is generated from rental income and related property income from investment properties held by the group. - Profitability is influenced by occupancy rates, rental rate changes, tenant mix, operating/maintenance costs, and broader commercial property market conditions. 3) Leisure/attractions: - Revenue is generated from visitor-related income at its leisure attractions (e.g., admissions/tickets and on-site spending where applicable). - Earnings can fluctuate with tourism volumes, local visitor traffic, operating costs, and broader travel/leisure trends. Other factors affecting earnings: - Overall earnings can be influenced by geographic sales mix and currency movements (for healthcare product sales), raw material and manufacturing costs, distribution/retail dynamics, and property market cycles. Specific material partnerships or counterparty arrangements are not available here and are therefore null.

Haw Par Financial Statement Overview

Summary

Very strong balance sheet with extremely low leverage and solid financial flexibility. Cash flow improved sharply in 2025 with free cash flow closely matching net income, but revenue declined in 2025 and unusually elevated net margins suggest non-operating items may be influencing reported earnings, reducing earnings-quality confidence.

Income Statement

Revenue expanded strongly from 2021–2024, but slipped in 2025 (annual revenue growth -9.12%), pointing to a near-term top-line slowdown. Profitability looks robust on gross margin (roughly mid-50% range) and healthy 2025 operating profitability (EBIT margin ~29%), but reported net profit margins are unusually high (often near or above 100%), suggesting earnings are meaningfully influenced by non-operating items; that makes headline profit less repeatable and lowers quality-of-earnings confidence.

Balance Sheet

The balance sheet is very conservatively financed, with extremely low leverage (debt-to-equity ~0.01 in 2025 and similarly low across prior years). Equity and assets have grown steadily over the period, providing substantial financial flexibility. Returns on equity are solid but not exceptional (mid-single-digit to ~6%), implying the company is very safe but not highly leveraged to amplify shareholder returns.

Cash Flow

Cash generation strengthened materially in 2025, with operating cash flow rising to 271.3M and free cash flow to 269.2M (very strong year-over-year improvement). Free cash flow closely matched net income in 2025 (about 0.99x), supporting earnings quality in the latest year; however, earlier years showed weaker cash conversion (operating cash flow well below net income in 2021–2024), indicating cash flow can be lumpy and timing-dependent.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	229.97M	244.82M	232.06M	182.09M	141.18M
Gross Profit	128.76M	134.09M	134.89M	98.57M	73.64M
EBITDA	73.45M	250.11M	233.49M	49.06M	119.45M
Net Income	265.46M	228.27M	216.57M	148.32M	110.10M
Balance Sheet
Total Assets	4.42B	4.28B	3.59B	3.65B	3.28B
Cash, Cash Equivalents and Short-Term Investments	834.71M	3.93B	3.21B	3.18B	596.23M
Total Debt	44.27M	36.30M	28.48M	58.40M	762.00K
Total Liabilities	126.83M	128.47M	117.17M	101.41M	72.08M
Stockholders Equity	4.29B	4.15B	3.48B	3.55B	3.21B
Cash Flow
Free Cash Flow	269.17M	50.33M	54.92M	21.21M	14.46M
Operating Cash Flow	271.29M	53.79M	62.68M	40.94M	18.84M
Investing Cash Flow	76.93M	199.82M	258.00M	-261.58M	87.52M
Financing Cash Flow	-300.68M	-82.79M	-79.30M	-38.07M	-65.11M

Haw Par Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:H02, the sentiment is Negative. The current price of 16.29 is above the 20-day moving average (MA) of 16.17, below the 50-day MA of 16.31, and above the 200-day MA of 14.58, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 35.97 is Neutral, neither overbought nor oversold. The STOCH value of 22.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:H02.

Haw Par Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H02	78 Outperform	S$3.30B	13.08	6.34%	8.96%	5.85%	6.82%
BSL	68 Neutral	S$1.90B	―	6.15%	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$1.53B	-23.90	-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.