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).
The company recently caught my attention due to its strong share price performance in the last five years, up by about 60% during the period. After doing some research on the company, I found some interesting facts about the company that many investors might not be aware of.
In my previous article here, we looked at three of those. In this article, we will continue with the next two.
Exceptional stock return in the last ten years
Investors like a company that can sustainably grow its business, and hence its share price, over a long period of time. For Haw Par, it has done just that over the decade.
Source: Yahoo Finance
To put the above share price rise into perspective, Haw Par’s share price grew from about S$3.45 ten years ago to S$13.35 today, up by about 290% during the period. In other words, the shares saw an annualised 14.5% gain over the years.
What’s more, the above return has yet to take into account all the dividend payment over the years.
An owner operator refers to major shareholders who also manage the company.
In the case of Haw Par, Wee Cho Yaw and his family members own a combined 35.64% of the company’s shares. Moreover, the family members also hold key management positions within the company, including the role of chairman, deputy chairman and CEO.
As such, minority investors should be comfortable with such a corporate structure before investing in the company. One benefit of such a structure is that the Wee family should be financially aligned with external shareholders, and will likely strive to make the company successful in the long-term.
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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 has a recommendation for Haw Par Group Ltd and United Overseas Bank.