Haw Par Corporation is on its way to another year of extraordinary good results coming off FY2023-an impressive S$122Mil 1st half profits being generated! Its 1st half 2024 Earning Per Shares (EPS) is at 55.1 cents and I think it should eventually hit more than S1.00 for the entire FY2024. This is amazing given that its historical EPS are 82 cents (FY2019); 54 cents (FY2020); 50 cents (FY2021); 67 cents (FY2022) and 98 cents (FY2023) respectively. The huge earnings for 2023 and 2024 is mainly attributable to its investment income from its strategic stake in UOB and also interest income from government debt securities.
Tiger Balm Still Doing Well.
Revenue top line from its main business of Tiger Balm healthcare have also been doing well recently and gradually recovering to pre-COVID level. It grew an impressive 6.3% year on year basis for the 1st half. Furthermore, the Management of Haw Par Corp has been looking out to deploy excess capital on hand via the acquisition of a new business. However, from management last update, they still have not found a suitable business for Haw Par Corp to acquire.
For those interested to know more about Har Paw Corporation, I will recommend you guys to read up on an interesting deep dive of Haw Par Corporation by our Incipient Investor friend from Passive Loss's blog in 2023.
Parting Thoughts
Shareholders who are hoping for a "special dividend" payout will be extremely disappointed. The interim dividends is at 20 cents which is a miserable pay-out ratio of approximately 36% only based on the current earning of 55.1 cents. Management has previously indicated that they will continue to look out for suitable business investment opportunity.
It is also strange that despite the better results of Haw Par for 2023 and 2024, its share price never recover to its former glorious price of S$13.60 per share in July 2021 and has continued to languish at the S$10 per share price range.
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