The Motley Fool

A Look at Haw Par Corporation Limited

Listed back in 1969, Haw Par Corporation Limited (SGX: H02) is a consumer healthcare business that also invests in strategic assets. Here’s what potential investors should know about the company.

Healthcare segment

The principal operating activity of the group is the licensing and distribution of the Tiger brand, which includes Tiger Balm and Kwan Loong. While some might assume that Tiger brand is old-school, the sale of Tiger products has actually been growing consistently over the past few decades.

Tiger Balm is now sold in 100 countries all over the world. In 2018, the upward sales trend for Tiger Balm in various markets in Southeast Asia, the Indo-China region, and Europe continues.

Besides Tiger balm, the company has also extended its product range, with Tiger Balm Neck & Shoulder rub gaining traction last year. Tiger Balm plaster is another new product that has outperformed its main competitors.

To keep its products visible to consumers, Haw Par Corporation has built effective partnerships with local distributors to enhance shelf visibility to consumers. Its efforts have clearly worked well, with healthcare segment revenue and profit growing 10.8% and 16.5% annually since 2007.

Investments and property

In addition to its healthcare business, Haw Par Corporation also holds a large number of shares of United Overseas Bank Limited (SGX: U11) and UOL Group Limited (SGX: U14).

As of 2018, Haw Par Corporation had 74.8 million shares of UOB and 72.0 million shares of UOL Group Limited. At the time of writing, the two investments have a market value of S$2.5 billion.

The group also owns three leasehold buildings in Singapore and a freehold commercial building in Kuala Lumpur.

Leisure and others segment

Lastly, the group also has a stake in Underwater World Pattaya. This segment contributes just a fraction of the group’s overall revenue. In 2018, total revenue from this segment was S$21 million, compared to S$201 million generated from its healthcare business.

Putting it all together

As you can see, Haw Par Corporation Limited is principally a healthcare business and generates most of its revenue from the Tiger Brand. However, it also holds a large investment in both UOB and UOL Group. Hopefully, this article gives investors a better idea of the make-up of this company, which has been on the stock market for over 50 years.

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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 Jeremy Chia doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Haw Par Group Ltd and United Overseas Bank.