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Haw Par Corporation Ltd Shares Are Up 60% In The Last 5 Years. Here’s How It Makes Its Cash

Haw Par Corporation Ltd (SGX: H02) is the maker of the Tiger Balm brand of ointment. Other than its healthcare arm, it also has strategic stakes in UOL Group Limited (SGX: U14) and United Overseas Bank Ltd (SGX: U11).

As the legendary investor Warren Buffet put it simply, we invest in businesses that 1) we can understand, 2) possess a competitive durable advantage, 3) have honest and capable management and 4) trade at a reasonable price.

From the above, we can see the importance of understanding a company prior to committing our capital. In this article, we will try to understand one aspect of Haw Par – how does it make its cash.

Type of income

Haw Par 2018 Profits and Breakdown

Source: Haw Par 2018 Annual Report

The first aspect that we will look at is the type of income.

The biggest contributor to profit before interest and tax in 2018 was the investment segment. This segment engages in long-term investing activities, mainly in quoted securities in Asia. Here, the bulk of Haw Par’s investment is in United Overseas Bank and UOL Group.

The second major contributor to 2018’s profit was the healthcare segment. This segment focuses on manufacturing and distributing topical analgesic products under the “Tiger Balm” and “Kwan Loong” brands.

Lastly, the leisure and property segment focuses on renting out properties, as well as providing family and tourist-oriented leisure activities mainly in the form of oceanariums.

Revenues by region

Haw Par 2018 revenues by country and region

Source: Haw Par 2018 Annual Report

The next aspect that we will look at is the region from which Haw Par derives its revenue.

From the above, we can see that Haw Par derived the bulk of its 2018 revenue from Asian countries, of which Singapore accounted for about 13%.

Given the low level of contribution of revenue from countries outside Asia, investors might keep an eye on how well the company can grow this part of its business. If the company is as successful in these countries as it is in Asia, there is a good chance for revenue to grow significantly in the future.


Overall, we see that there are a number of moving parts here.

By breaking down and understanding the different parts separately, it’s easier for investors to understand the business as a whole which will, in turn, help them make better investment decisions about Haw Par.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool Singapore has a recommendation for Haw Par Corporation Ltd and United Overseas Bank Ltd.