Haw Par Corporation (HPC) is a conglomerate involved in 3 main segments: Healthcare, Leisure and Investments. Its healthcare products are manufactured under the Tiger Balm and Kwan Loong Brand. The Group also owns and operates 2 aquariums in Sentosa and Pattaya. Additionally, they manage a portfolio of investment properties and securities. We have the following investment thesis:

1. Equity Investments worth SGD2,126m exceeds Haw Par Corporations current market capitalisation of SGD1,879m.
2. Highly stable Healthcare business of household-brands analgesics with highly profitable and strong cash-flow generation, 10-year average ROA and FCF/Total Assets of 29.0% and 26.1% respectively. Tiger Balm and Kwan Loong Oil is ranked 2nd and 5th respectively within Singapore’s analgesics space.
3. SGD223.6m property portfolio and Equity Investments provides a stable and recurring source of income.

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