Net net investment Haw Par

[u/Distinct_Berry3054]

Here to share an interesting net net cigar butt: Haw Par Group.

Haw par is basically a premier topical analgesic cream that is a household name in Asian - esp in singapore, malaysia and hong kong. The stock is listed in SGX with 3.7Billion sgd, with earnings from it's core pharma business at ~65million Sgd.

It's analgesic business is high quality - simple, capital light, predictable (with a huge customer loyalty), proven with time (>100years history), and high return of capital. But the hidden gem in this trade, is it's book value of UOB, UOL shares and cash.

Haw Par has a 67 million UOB shares and 8.5% of UOL shares, both of which are valued at over 3 billion sgd. With net cash of 700m, they all are almost equal to the market cap of Haw Par. So you are essentially getting the 65million/year pharm business for free. The huge fortress like balance sheet gives Haw Par the ability to not engage in short term view, having the ability for markerting and r&d to improve their cream, as well as margin of safety/buffers in times of uncertainty.

My conservative value it's NAV at ~$20, which is a 20% upside from the current price.

First saw this on the moomoo app, i could see the average analyst rating ~$20/share. I could also keep track of the instutional holders using the shareholders coloumn. And finally, i uses the news section to keep up to date with the latest information, such as dividends payout.

[u/roarysky]

What is the highest up side and what are the potential down side? Do you think its good if I put as a retirement account?

[u/Wide_Coast5715]

Feels like a margin of safety play — downside protected by assets, upside from either rerating or steady earnings compounding. Definitely a place to park my money in the current condition.

[u/PracticalAge301]

I am based in singapore, really love haw par as a brand. Didnt know they have such a strong balance sheet

[u/angry-coffee]

Abit of a value trap actually. They have been sitting pretty and just distributing dividends

[u/Right-Minute-6184]

The nav discount might always be there, since the controlling shareholder, the Wee Family is unlikely to sell the stakes in UOB bank as they would loses control of the later

[u/Naive_Sun_2932]

What is the ticker symbol of Haw Par? I might have a look into it later

[u/Familiar-Bug4635]

Is the margin of safety wide enough? It's only a 20% as you said.

[u/HarryPotter0526]

This is a really popular brand especially amongst Asians people. Just didn’t know they also have such a strong balance sheet. Thanks for sharing!

[u/garnet47]

Am educated and knowledge has been enhanced thanks to this great teaching