SGX:H02

Stock Analysis Report

Executive Summary

Haw Par Corporation Limited, together with its subsidiaries, manufactures, markets, and trades in healthcare products in Singapore, ASEAN countries, other Asian countries, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.

Share Price & News

How has Haw Par's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

H02

-0.5%

SG Pharmaceuticals

-0.002%

SG Market


1 Year Return

4.1%

H02

-1.4%

SG Pharmaceuticals

0.7%

SG Market

Return vs Industry: H02 exceeded the SG Pharmaceuticals industry which returned -1.4% over the past year.

Return vs Market: H02 exceeded the SG Market which returned 0.7% over the past year.


Shareholder returns

H02IndustryMarket
7 Day-1.1%-0.5%-0.002%
30 Day-3.0%-1.2%-1.4%
90 Day-7.0%-6.0%-7.3%
1 Year13.0%4.1%4.7%-1.4%4.7%0.7%
3 Year65.5%46.9%39.0%25.0%15.1%2.8%
5 Year86.7%55.0%37.1%16.2%10.1%-8.2%

Price Volatility Vs. Market

How volatile is Haw Par's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Haw Par undervalued compared to its fair value and its price relative to the market?

15.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: H02 (SGD13.24) is trading above our estimate of fair value (SGD7.72)

Significantly Undervalued: H02 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: H02 is good value based on its PE Ratio (15.4x) compared to the Pharmaceuticals industry average (21.3x).

PE vs Market: H02 is poor value based on its PE Ratio (15.4x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate H02's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: H02 is good value based on its PB Ratio (1x) compared to the SG Pharmaceuticals industry average (1x).


Next Steps

Future Growth

How is Haw Par forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H02's forecast earnings growth (15% per year) is above the savings rate (2.3%).

Earnings vs Market: H02's earnings (15% per year) are forecast to grow faster than the SG market (5.5% per year).

High Growth Earnings: H02's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if H02's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if H02's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if H02's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Haw Par performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: H02's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: H02's earnings growth over the past year (22%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: H02 earnings growth over the past year (22%) exceeded the Pharmaceuticals industry 7.4%.


Return on Equity

High ROE: H02's Return on Equity (6.2%) is considered low.


Return on Assets

ROA vs Industry: H02's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: H02 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Haw Par's financial position?


Financial Position Analysis

Short Term Liabilities: H02's short term assets (SGD478.2M) exceeds its short term liabilities (SGD101.9M)

Long Term Liabilities: H02's short term assets (478.2M) exceeds its long term liabilities (725.0K)


Debt to Equity History and Analysis

Debt Level: H02's debt to equity ratio (0.8%) is considered satisfactory

Reducing Debt: H02's debt to equity ratio has reduced from 2% to 0.8% over the past 5 years.

Debt Coverage: H02's debt is well covered by operating cash flow (337.6%).

Interest Coverage: H02 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: H02 has a low level of unsold assets or inventory.

Debt Coverage by Assets: H02's debt is covered by short term assets (assets are 20.076910x debt).


Next Steps

Dividend

What is Haw Par's current dividend yield, its reliability and sustainability?

2.27%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%2.6%markettop25%5.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: H02's dividend (2.27%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.55%).

High Dividend: H02's dividend (2.27%) is low compared to the top 25% of dividend payers in the SG market (5.71%).

Stable Dividend: H02's dividend payments have been volatile in the past 10 years.

Growing Dividend: H02's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.9%), H02's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Haw Par's salary, the management and board of directors tenure and is there insider trading?

9.4yrs

Average management tenure


CEO

Ee Lim Wee (58yo)

16yrs

Tenure

S$2,080,000

Compensation

Mr. Ee Lim Wee has been the Chief Executive Officer and President of Haw Par Corporation Limited since April 1, 2003. Mr. Wee has been an Acting President and Chief Executive Officer of Haw Par Healthcare  ...


CEO Compensation Analysis

Compensation vs. Market: Ee Lim's total compensation ($USD1.52M) is about average for companies of similar size in the SG market ($USD1.45M).

Compensation vs Earnings: Ee Lim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.4yrs

Average Tenure

Experienced Management: H02's management team is seasoned and experienced (9.4 years average tenure).


Board Age and Tenure

19.3yrs

Average Tenure

71.5yo

Average Age

Experienced Board: H02's board of directors are seasoned and experienced ( 19.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellS$9,347,34823 May 19
First Eagle Investment Management, LLC
EntityCompany
Shares634,607
Max PriceS$14.73
SellS$587,50523 May 19
Ah Han
EntityIndividual
Role
Member of the Board of Directors
Executive Non-Independent Director
Shares40,100
Max PriceS$14.65
SellS$525,92422 May 19
Ah Han
EntityIndividual
Role
Member of the Board of Directors
Executive Non-Independent Director
Shares36,000
Max PriceS$14.61
SellS$919,50018 Dec 18
Soo Jin Hwang
EntityIndividual
Role
Member of the Board of Directors
Non-Executive & Independent Director
Shares75,000
Max PriceS$12.26

Ownership Breakdown


Management Team

  • Ee Lim Wee (58yo)

    CEO, President & Executive Non-Independent Director

    • Tenure: 16yrs
    • Compensation: S$2.08m
  • Ah Han (70yo)

    Executive Non-Independent Director

    • Tenure: 14.8yrs
    • Compensation: S$877.00k
  • Paul Chow

    Group Financial Controller

    • Tenure: 0.7yrs
  • Meng Kwek

    Regional General Manager of Underwater World Singapore Pte Ltd & Haw Par Leisure Pte Ltd

    • Tenure: 17.8yrs
  • Tang Lee

    Manager of Corporate Communications

    • Tenure: 0yrs
  • Kay Swee Lee

    Legal Counsel & Company Secretary

    • Tenure: 0.6yrs
  • Edwin Chia

    Human Resource Director

    • Tenure: 2.8yrs

Board Members

  • Hiang Meng Gn (70yo)

    Non-Executive Independent Director

    • Tenure: 5.2yrs
    • Compensation: S$55.00k
  • Cho-Yaw Wee (90yo)

    Non-Executive & Non-Independent Chairman

    • Tenure: 41.8yrs
    • Compensation: S$100.00k
  • Soo Jin Hwang (83yo)

    Non-Executive & Independent Director

    • Tenure: 33yrs
    • Compensation: S$50.00k
  • Ee Lim Wee (58yo)

    CEO, President & Executive Non-Independent Director

    • Tenure: 16yrs
    • Compensation: S$2.08m
  • Suan Lee (85yo)

    Non-Executive Independent Director

    • Tenure: 23.8yrs
    • Compensation: S$50.00k
  • Ah Han (70yo)

    Executive Non-Independent Director

    • Tenure: 14.8yrs
    • Compensation: S$877.00k
  • Ee-chao Wee (64yo)

    Non-Executive Deputy Chairman

    • Tenure: 3.7yrs
    • Compensation: S$59.00k
  • Peter Sim (64yo)

    Non-Executive Independent Director

    • Tenure: 8.4yrs
    • Compensation: S$60.00k
  • Sat Pal Khattar (76yo)

    Non-Executive Independent Director

    • Tenure: 42.8yrs
    • Compensation: S$65.00k
  • Kia Ngee Chew (73yo)

    Non-Executive Independent Director

    • Tenure: 8.4yrs
    • Compensation: S$65.00k

Company Information

Haw Par Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Haw Par Corporation Limited
  • Ticker: H02
  • Exchange: SGX
  • Founded: 1969
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: S$2.927b
  • Shares outstanding: 221.07m
  • Website: https://www.hawpar.com

Number of Employees


Location

  • Haw Par Corporation Limited
  • No. 03-03 Haw Par Technocentre
  • 401 Commonwealth Drive
  • Singapore
  • 149598
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HAWP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
H02SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 1992
HAWP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2011

Biography

Haw Par Corporation Limited, together with its subsidiaries, manufactures, markets, and trades in healthcare products in Singapore, ASEAN countries, other Asian countries, and internationally. The company’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:38
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.