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21-29 of 29
UOB dynasty stocks in action again
This is going to get more interesting.
https://uk.finance.yahoo.com/news/heres-why-think-haw-par-025757585.html?guccounter=1& guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8& guce_referrer_sig=AQAAAKyBJnRXeFYWDjB6yqZ4WYfQJZIsj8ITrODCGDotNaLpqBCNhRwlW23sam2eJhgmLQYGcJdJkUS-J2s5S0TRzztrws28py18lX6jJEwIl_e-ToZD9P67juztF9dCMokZloNjTJGBn3VcSr0zfHy0grVVc-maA7zhfi6FI07U3Pgf
https://uk.finance.yahoo.com/news/heres-why-think-haw-par-025757585.html?guccounter=1& guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8& guce_referrer_sig=AQAAAKyBJnRXeFYWDjB6yqZ4WYfQJZIsj8ITrODCGDotNaLpqBCNhRwlW23sam2eJhgmLQYGcJdJkUS-J2s5S0TRzztrws28py18lX6jJEwIl_e-ToZD9P67juztF9dCMokZloNjTJGBn3VcSr0zfHy0grVVc-maA7zhfi6FI07U3Pgf
it is good to own company with a fortress balance sheet, great assets, a lot of cash, and amazing brand value.
what kind of questions should we ask Haw Par management for AGM?
23 April 2025 at 2.00 p.m
PARKROYAL on Beach Road, Grand Ballroom, Level 1
what kind of questions should we ask Haw Par management for AGM?
23 April 2025 at 2.00 p.m
PARKROYAL on Beach Road, Grand Ballroom, Level 1
Some of the main assets of Haw Par - total value about $6.1 billion SGD.
UOB shares (74.8 million) : Current market value ~ $2.86 billion SGD
UOL Group shares (71.9 million): Current market value ~ $420 million SGD
Net Cash at hand (31-Dec-2024): $709 million SGD
Liquid Debt investments (31-Dec-2024): $143 million SGD
Fast growing & highly profitable HealthCare segment (TIGER brand): $2 billion to 2.5 billion valuation.
Total value about $6.1 billion SGD.
DYODD
UOB shares (74.8 million) : Current market value ~ $2.86 billion SGD
UOL Group shares (71.9 million): Current market value ~ $420 million SGD
Net Cash at hand (31-Dec-2024): $709 million SGD
Liquid Debt investments (31-Dec-2024): $143 million SGD
Fast growing & highly profitable HealthCare segment (TIGER brand): $2 billion to 2.5 billion valuation.
Total value about $6.1 billion SGD.
DYODD
I bought in 2023 from $9.22 to $9.75 in anticipation of special dividend which should come by 2028 or 2029. But payday came so much earlier.
Indeed, the big money is in the waiting.
alexvar ( Date: 27-Mar-2025 12:18) Posted:
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$1.20 dividend coming up in May!
~10 percent dividend yield.
UOB bank is pumping, and paying special dividend and share buybacks.
haw par should also do share buybacks, until at least the price is not longer discounted to the cash-rich book value of ~$19 per share.
~10 percent dividend yield.
UOB bank is pumping, and paying special dividend and share buybacks.
haw par should also do share buybacks, until at least the price is not longer discounted to the cash-rich book value of ~$19 per share.
Seeing the daily prices of HP reminds me of the idiom 欲 迎 还 拒 .
Haha but looking at the volume & price so far today, this wayang kulit may be finally over. 🎭
The HealthCare (mainly Tiger products) segment grew at a 24 percent annual revenue CAGR from 2020 to 2024, generating an amazing 40 percent pre-tax ROA in both 2023 and 2024.
In 2024, the Healthcare segment had S$162 million in total assets, generating S$226 million in sales and S$62 million in pre-tax profits. This is a high-growth, recession-resistant segment that will continue to drive the company&rsquo s profitability in the future.
If we were to value the Healthcare segment as a stand-alone company, taking the 40 times of its S$62 million 2024 pre-tax profits, it could be valued at approximately S$2.5 billion.
If we took 10 times of its 2024 annual revenues, the Healthcare segment could be valued at approximately S$2.3 billion (especially, the highly valuable Tiger brand).
DYODD
In 2024, the Healthcare segment had S$162 million in total assets, generating S$226 million in sales and S$62 million in pre-tax profits. This is a high-growth, recession-resistant segment that will continue to drive the company&rsquo s profitability in the future.
If we were to value the Healthcare segment as a stand-alone company, taking the 40 times of its S$62 million 2024 pre-tax profits, it could be valued at approximately S$2.5 billion.
If we took 10 times of its 2024 annual revenues, the Healthcare segment could be valued at approximately S$2.3 billion (especially, the highly valuable Tiger brand).
DYODD
Folks at Sakura Research just published a BUY research on haw par corp.
Haw Par Call for Strategic Review
Simplify the group structure by distributing UOB and UOL Group shares, increase stock liquidity, focus on high-growth, high-return segments, and maximize ROE (SGX H02)
Sakura Research is long Haw Par Corporation
Opinions only. Terms Apply.
Why Sakura Research is long Haw Par Corporation (HPC)
1) Management is Keen to Reward the Shareholders
HPC management is now committed to rewarding all shareholders, with a final dividend of 20¢ and a special dividend of $1, resulting in an annual dividend yield of approximately 10.8 percent
2) Recession-Proof Strong Balance Sheet
HPC boasts a rock-solid balance sheet, with 30 percent of its market cap in cash-like instruments (cash at hand and liquid debt instruments) and nearly zero intangibles. After deducting these liquid assets, HPC&rsquo s effective market cap is around S$1.98 billion only, making it an attractive investment at current prices.
3) Own UOB and UOL Group at Subsidized Prices
HPC provides exposure to UOB Bank and UOL Group at a significant market discount. For every 3 HPC shares, HPC investors could receive 1 share of UOB Bank and 1 share of UOL Group as dividend-in-specie. This is an excellent deal, as those 3 HPC shares cost about S$38, while the combined value of the 2 additional (1 UOB + 1 UOL) shares is ~S$43.
This arbitrage opportunity does even not account for HPC massive net cash plus liquid debt instruments pile (at around S$850 million), its fast-growing and highly profitable Healthcare Segment, the highly valuable Tiger brand, Singapore/Malaysia commercial properties, or Underwater World Pattaya.
4) Tiger Brand and High Growth Healthcare Segment
HPC&rsquo s healthcare segment is a standout, with 24 percent annual revenue CAGR from 2020 to 2024.
This segment generates an impressive pre-tax ROA of around 40 percent. In 2024, the healthcare division had S$162 million in assets, generating S$226 million in sales and S$62 million in pre-tax profits.
This is a high-growth, recession-resistant segment that will continue to drive the company&rsquo s profitability. This segment could be valued at S$2.3 to $S2.5 billion on a stand-alone basis.
5) Limited Analyst Coverage of this Stock Gem, haw par
Despite strong operating results and an attractive dividend payout, analyst coverage of HPC remains terribly low. The most recent report was issued in July 2024, by CGS International, and it noted that HPC is trading below historical book value.
6) Opportunities to Improve Return on Equity (ROE)
Haw Par Coporations&rsquo s current Return on Equity (ROE) stands at approximately 6 percent, but it has the potential to increase this to at least 10 percent. One strategy to achieve this could be share repurchases, similar to what UOB Bank recently implemented with its $3 billion special dividend and buyback package. Increasing ROE through buybacks would create further shareholder value, but sadly, HPC&rsquo s most recent buyback was 18 years ago, in 2007.
7) Potential Stock Split to Boost Liquidity
A stock split could increase liquidity, allowing HPC to become a likely candidate for inclusion in the SGX STI 30 Index. This could elevate HPC&rsquo s status alongside other index constituents, like UOB and UOL Group. It would also be a step toward replacing less compelling foreign companies, such as DFI Retail Group (China) and ThaiBev (Thailand), with a strong Singaporean company.
8) Simplification of the Group Structure through UOL & UOB share distributions
We believe HPC&rsquo s management should simplify the corporate structure by distributing its UOL Group and UOB shareholdings (as dividend-in-specie to Haw Par shareholders) to improve stock liquidity, management focus on ROE maximisation, and enhance its growth potential.
DYODD.
Haw Par Call for Strategic Review
Simplify the group structure by distributing UOB and UOL Group shares, increase stock liquidity, focus on high-growth, high-return segments, and maximize ROE (SGX H02)
Sakura Research is long Haw Par Corporation
Opinions only. Terms Apply.
- Haw Par Share Price: about S$12.80
- Net Asset Value per Share (as of 31-Dec-2024): S$18.74
- Market Cap: about S$2.8 billion (about US$2.13 billion)
- Dividend Yield: 10.8 percent (20¢ initial dividend, 20¢ final dividend, and $1 special dividend)
- Ex-Dividend S$1.20 Date: May 5, 2025
- Price/Net Tangible Book Value: 0.69
- Strong Net Cash Position: S$710 million in net cash (after deducting borrowings) and S$143 millionin liquid debt instruments, together representing around 30 percent of market cap.
- HPC ownership of STI-30 stocks: Around 74.8 million shares of UOB (~$2.8b) and around 72 million shares of UOL Group (~$417m), representing around 113 percent of HPC market capitalization.
- 5-year share price performance: Terribly low 21 percent for HPC, compared to UOB&rsquo s approximately 100 percent increase, and the STI Index approximately 62 percent increase.
Why Sakura Research is long Haw Par Corporation (HPC)
1) Management is Keen to Reward the Shareholders
HPC management is now committed to rewarding all shareholders, with a final dividend of 20¢ and a special dividend of $1, resulting in an annual dividend yield of approximately 10.8 percent
2) Recession-Proof Strong Balance Sheet
HPC boasts a rock-solid balance sheet, with 30 percent of its market cap in cash-like instruments (cash at hand and liquid debt instruments) and nearly zero intangibles. After deducting these liquid assets, HPC&rsquo s effective market cap is around S$1.98 billion only, making it an attractive investment at current prices.
3) Own UOB and UOL Group at Subsidized Prices
HPC provides exposure to UOB Bank and UOL Group at a significant market discount. For every 3 HPC shares, HPC investors could receive 1 share of UOB Bank and 1 share of UOL Group as dividend-in-specie. This is an excellent deal, as those 3 HPC shares cost about S$38, while the combined value of the 2 additional (1 UOB + 1 UOL) shares is ~S$43.
This arbitrage opportunity does even not account for HPC massive net cash plus liquid debt instruments pile (at around S$850 million), its fast-growing and highly profitable Healthcare Segment, the highly valuable Tiger brand, Singapore/Malaysia commercial properties, or Underwater World Pattaya.
4) Tiger Brand and High Growth Healthcare Segment
HPC&rsquo s healthcare segment is a standout, with 24 percent annual revenue CAGR from 2020 to 2024.
This segment generates an impressive pre-tax ROA of around 40 percent. In 2024, the healthcare division had S$162 million in assets, generating S$226 million in sales and S$62 million in pre-tax profits.
This is a high-growth, recession-resistant segment that will continue to drive the company&rsquo s profitability. This segment could be valued at S$2.3 to $S2.5 billion on a stand-alone basis.
5) Limited Analyst Coverage of this Stock Gem, haw par
Despite strong operating results and an attractive dividend payout, analyst coverage of HPC remains terribly low. The most recent report was issued in July 2024, by CGS International, and it noted that HPC is trading below historical book value.
6) Opportunities to Improve Return on Equity (ROE)
Haw Par Coporations&rsquo s current Return on Equity (ROE) stands at approximately 6 percent, but it has the potential to increase this to at least 10 percent. One strategy to achieve this could be share repurchases, similar to what UOB Bank recently implemented with its $3 billion special dividend and buyback package. Increasing ROE through buybacks would create further shareholder value, but sadly, HPC&rsquo s most recent buyback was 18 years ago, in 2007.
7) Potential Stock Split to Boost Liquidity
A stock split could increase liquidity, allowing HPC to become a likely candidate for inclusion in the SGX STI 30 Index. This could elevate HPC&rsquo s status alongside other index constituents, like UOB and UOL Group. It would also be a step toward replacing less compelling foreign companies, such as DFI Retail Group (China) and ThaiBev (Thailand), with a strong Singaporean company.
8) Simplification of the Group Structure through UOL & UOB share distributions
We believe HPC&rsquo s management should simplify the corporate structure by distributing its UOL Group and UOB shareholdings (as dividend-in-specie to Haw Par shareholders) to improve stock liquidity, management focus on ROE maximisation, and enhance its growth potential.
DYODD.