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Management refusing to give themselves the option of buying back shares even though that optionality costs nothing.
HAW PAR CORPORATION LIMITED
Date & Time
23 Apr 2024 02:00 PM
Location
Parkroyal on Beach Road, Grand Ballroom, Level 1, 7500 Beach Road, Singapore 199591.
Will this test $10 soon? In the top gainer list today.
Dr Wee RIP.
.
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I had the same concern previously because I see Eu Yan Sang a lousy business.
But now I think likely not because I found out Wee family and Eu family are actually related. One of WCY' s daughters married Eu' s ex-Chairman' s son (current Chairman' s brother), who has passed away. This info can be found from internet.
Surnames of WCY' s two grandsons are actually Eu. So I suppose they (also their mother, WCY' s daughter) may have inherited some stakes in Eu Yan Sang.
Also I am thinking if Wees are really interested in the Eu Yan Sang business, they should have bought them when Eu Yan Sang were delisted back in 2016. That time the valuation was much cheaper.
If Wees really buy Eu Yan Sang this time at such a valuation, investors should question if there is any corporate governance issue.
But now I think likely not because I found out Wee family and Eu family are actually related. One of WCY' s daughters married Eu' s ex-Chairman' s son (current Chairman' s brother), who has passed away. This info can be found from internet.
Surnames of WCY' s two grandsons are actually Eu. So I suppose they (also their mother, WCY' s daughter) may have inherited some stakes in Eu Yan Sang.
Also I am thinking if Wees are really interested in the Eu Yan Sang business, they should have bought them when Eu Yan Sang were delisted back in 2016. That time the valuation was much cheaper.
If Wees really buy Eu Yan Sang this time at such a valuation, investors should question if there is any corporate governance issue.
Rightstock ( Date: 17-Jan-2024 09:26) Posted:
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Eu Yan San?
Roar power: Haw Par rides on Tiger Balm strength to bite into new markets
CONSUMERS in Singapore would recognise the classic Tiger Balm ointment in a heartbeat.
The analgesic heat rub &ndash in a distinctive hexagonal shaped vessel adorned with the logo of a leaping tiger &ndash remains the most well-known offering from healthcare products manufacturer Haw Par Corporation : H02 -0.21%.
But the topical ointment is just one of the many products in the company&rsquo s extensive range.
Over the last few decades, Haw Par has introduced plasters, mosquito repellent patches, scented shoulder rubs and sports warm-up creams to help bring the household name to more users and new markets.
Haw Par president and chief executive Wee Ee Lim noted that Tiger Balm&rsquo s market segment has &ldquo changed significantly&rdquo as the company started to develop markets in the United States and Europe in the 1980s.
Wee, who has led the company since 2003, said: &ldquo We have gotten good traction over the decades in the US and in European countries, with the help of the younger generation in the Western world having more knowledge of alternative medicines.&rdquo
And these markets helped to buoy demand for its healthcare wellness products during the Covid-19 pandemic.
Lockdowns and restrictions led to a slowdown in demand in Asian markets and operations in manufacturing plants in the region, while higher logistics costs added to operational costs, Wee told The Business Times.
During this time, consumers in Europe and the US were able to move around more easily and continue their usual spending habits. &ldquo They helped us through the most difficult period during Covid,&rdquo Wee said.
With the pandemic now mostly behind many markets, overall consumer sentiment has returned in full force.
Mainboard-listed Haw Par&rsquo s earnings jumped 34.9 per cent to S$104.1 million for the half year ended June 2023, from S$77.2 million in the corresponding year-earlier period.
Revenue climbed 16.3 per cent to S$111.1 million, from S$95.5 million in H1 FY2022. The group&rsquo s healthcare products accounted for the bulk of its total revenue, raking in sales of S$101.8 million for the period.
Haw Par said the improvement in H1 FY2023 was boosted by growth in consumer spending.
Brand recognition
While Haw Par&rsquo s products are widely recognised, the group struggles with a perception that its medicated oils are used largely by older folks.
Recognising that the texture and strong smell of the bottled ointment could be unpopular among younger consumers, it has turned to creating new, more trendy products &ndash while keeping the classic Tiger Balm association.
Tiger Balm&rsquo s range of products includes mosquito patches and repellents, pain patches, scented rubs and muscle sprays. PHOTO: HAW PAR CORPORATION
&ldquo When we refresh our traditional range of products, we consciously try to maintain the classic look,&rdquo said Wee.
It also developed products for more niche consumer groups. For example, it now has a warm-up cream for athletes.
Still, the original ointment remains the most distributed product under the Tiger Balm brand.
Several celebrities have posted about the product &ndash all unsolicited, said Wee. And the ointment even recently appeared in the South Korean drama King the Land, with screenshots of the scene shared widely on social media.
Wee joked: &ldquo Even if you go up to some obscure ski resorts in the mountains somewhere in Europe, you can still get (Tiger Balm).&rdquo
Tourism growth driver
Despite the improved sales last year, Wee is cautiously optimistic about the group&rsquo s prospects in 2024.
For instance, he highlighted a dampening of consumer sentiment in European markets.
Meanwhile, in the US, large retailers are facing the squeeze from e-commerce rivals. This pressure, he said, has been passed on to manufacturers.
At the same time, the slow return of Chinese tourists has hampered growth in the global tourism industry &ndash crimping a key revenue source, said Wee.
&ldquo In order to see growth, we have to get the tourism business to come back,&rdquo said Wee. &ldquo That engine is missing at the moment.&rdquo
Haw Par&rsquo s interest in tourism is also apparent in its leisure business.
The group owns Underwater World Pattaya in Thailand, which was opened in 2003 and has been profitable except during the Covid-19 years.
Closer to home, it used to run Underwater World Singapore in Sentosa, which closed in June 2016.
Haw Par had first purchased a 54.31 per cent stake in Underwater World Singapore in 1995, before buying up the remaining interest in 1999.
The group also previously operated oceanariums in Spain and China.
Hunting for new pastures
While leisure is not its current focus, Wee said retaining the Thai oceanarium helps to preserve the knowledge and experience the group had acquired in the aquarium attraction industry.
He also did not rule out finding other locations to &ldquo reignite the leisure segment&rdquo .
Haw Par is similarly on the lookout for &ldquo meaningful acquisitions at a reasonable valuation&rdquo , said Wee.
He noted that the low interest rate environment of the last 10 to 15 years meant that the company found it challenging to add value through acquisitions during that period.
Cautious about overly stretching Tiger Balm&rsquo s brand equity from the topical analgesics and well-being space for entry into new segments, however, Wee would prefer to acquire already established brands.
The group had S$275.8 million in cash and cash equivalents as at Jun 30.
&ldquo What you see today, with a lot of uncertainty in the market&hellip maybe this will be the time to put our dry powder to work,&rdquo he said.
Poor UOL share price performance not good for sentiment.
why the drop today
With a wonderful business, you can figure out WHAT will happen. You can't figure out WHEN it will happen. You don't want to focus on WHEN, you want to focus on WHAT. If you are right about WHAT, you don't have to worry about WHEN.
why so many married deal, any?
xmas is around the corner...haw haw haw
don' t par par if price shoot up soon...haw haw haw
don' t par par if price shoot up soon...haw haw haw
haw haw
haw haw par
Stuck at 9+
Turd gets lower despite healthy profits. Imagine if negative profit.
Please show hand sell down this fellow
jpm and fraser selling 9.7x
Yeah, be happy it took sooooo looooong.
Else how to OTOT buy at below $10 for past 5 months?
& as recent as early July, HP was labelled as turd in this thread, haha.
My average cost after 2 rounds of dividends is $9.31. 🐅 🐆 💰 🧧
kandinsky ( Date: 30-Aug-2023 14:11) Posted:
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take so long to realise? lol
beetlejuice ( Date: 30-Aug-2023 13:50) Posted:
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