Wolf Money(Haw Par Corporation)


I have taken a position in Haw Par Corp(HPC). I am sure a lot of value investors would have long drawn to this deep value company. Haw Par Corp has three core businesses, one part healthcare, one part investment and one part leisure. The two main businesses which generate the most profit for the group are healthcare and investment.


(A range of ointments well like by generations) 

Tiger balm brand is very well established in Asia, very popular with tourists buying back as a gift for their friends and relatives when they travel to Singapore. The Singapore heritage brand was founded by the Aw senior in 1870s. The healthcare unit generates a steady profit for the company in the range of 30-40m a year.


The investments portion mainly comprises a 4.4% stake in UOB and a 8.5% stake in UOL are the prime cuts of the “mix grill”. Dividends from both companies amounting to 104m making up most of the HPC’s 148m profit in FY 2022. The market value of UOB share alone is worth around $10 per Haw Par Corp share equaling to the whole market capitalisation of Haw Par Corp. If Haw Par ever had intention of selling UOB shares, the shareholders of Haw Par will get the rest of the businesses for free which make up of 3 leasehold office properties, 8.5% stake in UOL shares(468m), the healthcare business and 600m cash around $2.7 net cash per share. The reported NAV of $16 made up of highly liquid assets comprises of marketable securities, cash and treasury bills. The share is trading at only 0.6x price to book. How did a healthcare company got involved in UOB share, the initial shares in UOB was part of the deal for UOB to acquired Chung Khiaw Bank which was then under Haw Par Brothers. The story of Haw Par is one of fascination akin to an old version of the “Crazy rich asian” movie. This company has to be one of the most undervalue company listed on SGX. It is one of the rare net net listco in Singapore with strong fundamental.

Below is a link to the Haw Par story



(Trading range of $9-$14 over the past 5 years)

The outlook for the healthcare business is good with borders reopening after covid lockdown. The underwater world in Thailand should also benefit from tourists flocking back into the country. The group reported a 35% jump in profit in FY2022. HPC will have a bump up in profit generated from the extra 15c special dividend declared by UOB and 3c special dividend by UOL in 1H FY2023 result. To be honest, I never fancy the company, always feel the stock is a hard nut to crack, a potential value trap due to “wcy discount”, a very shrewd banker who always paid 50c for something worth a dollar. The dividend is a low 3% given the amount of cash flow generated from its businesses. I am buying it as a cash management tool with current share price trading closer to lower range of that 5 years trading range of $9-$14. There are no fast money here, it might not be suitable for hot blooded young men who love driving their Lamborghini. God Bless.

Psst....btw don’t expect Dr. Wee to sell his sister companies in Haw Par anytime soon, they are critical to his empire. 😉

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  1. it just dropped $1 below my buying price, luckily i have only 1 lot...hahaha

    1. You get use to it pretty soon 😆 best of luck tiger cub


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