Singapore listed Haw Par Corp announced their full year results not too long ago. While the results is same old, same old they decide to announced a final dividend of 20 cents per share and also a $1 special dividend.
If they keep their share price at $12, that means a 10% yield payout.
The last time I wrote about Haw Par was in 2024 [Haw Par: The Sleepy 4% Yielder in 2024]
Well Haw Par isn’t that sleepy of a yielder anymore but it is still very far off from where UOB is sitting at now.
The top chart below is the price of Haw Par and bottom is UOB.
The price of Haw Par is pretty much linked to how UOB perform since Haw Par owns a chunk in UOB. Haw Par is sill below its high.
This post is less of an update of the performance because I don’t think the price is going to do much as an indirect proxy stock. I am grateful for the special dividend and could treat that as buying today at $11 instead of $12.
Here are some of the updated figures. Most of the figures reported are in billions and millions so you have to contextualize how they are related to the market capitalization of Haw Par. There are currently 221 million Haw Par outstanding shares and at a price of $11.98, Haw Par’s market capitalization is $2,647 million. For context, the price at last write up $9.4, the market cap was at $2086. At $0.40 dividend per share, it currently represents 3.3% in dividend yield, which cost $88 million.
Strategic and Long Term Investments
Haw Par owns shares in UOB and UOL. The table shows the value of the shares they own.
| UOB | UOL | Total | |
| 2024 | 2.7 bil | 371 mil | 3.07 bil |
| 2023 | 2.1 bil | 451 mil | 2.55 bil |
| 2022 | 2.3 bil | 484 mil | 2.78 bil |
The value of UOB and UOL have been volatile. Their share price have gone the opposite directions (you can check the charts). Based on the current market yield average of 3.7%, The value of their holdings would generate like $107 mil which is good for $0.48 worth of dividends. This gives you an idea how well covered the dividend is.
Haw Par is net cash and the market capitalization is lower than the value of shares own in both UOB and UOL.
Refer to the UOB and UOL dividend per share history that I posted below.
Haw Par Total Cash + Investment in Debt Securities
Here is Haw Par’s cash and liquid position growth over the years:
| Cash + Inv in Debt Securities | Remarks | |
| 2024 | $888 mil | |
| 2023 | $759 mil | |
| 2022 | $628 mil | |
| 2021 | $596 mil | |
| 2020 | $554 mil | |
| 2019 | $465 mil | There is a special dividend paid out. Total div paid out $1.15 per share. |
| 2018 | $519 mil | |
| 2017 | $401 mil | |
| 2016 | $313 mil |
I was kind of right in my last Haw Par review that they could add $100 mil a year if they want to. With the special dividend of $1, that will cost Haw Par $221 mil and this means most likely the cash holdings will stay at this level or go down slightly next year.
UOB Dividend Per Share
I decide to tabulate UOB’s historical dividend per share since this has become a significant part of Haw Par’s cash flow.
| Dividend Per Unit | Remarks | |
| 2025 | $2.32 | Special div of $0.50 |
| 2024 | $1.73 | |
| 2023 | $1.60 | |
| 2022 | $1.20 | |
| 2021 | $0.99 | |
| 2020 | $1.14 | |
| 2019 | $1.25 |
Mental note that at current share price of $38, the historical dividend yield is closer to 4.7%.
UOL Dividend Per Share
Since I tabulated UOB, I should do it for UOL as well.
| Dividend Per Unit | Remarks | |
| 2024 | $0.20 | |
| 2023 | $0.18 | |
| 2022 | $0.15 | |
| 2021 | $0.15 | |
| 2020 | $0.175 | |
| 2019 | $0.175 | |
| 2018 | $0.175 | |
| 2017 | $0.15 | |
| 2016 | $0.15 | |
| 2015 | $0.15 | |
| 2014 | $0.20 |
Mental note that at current share price of $5.09, the historical dividend yield is closer to 3.9%
Haw Par’s Dividend and Interest Received.
There is much of Haw Par’s earnings that comes from the dividends received from the shares they held in UOB and UOL, as well as interest earned from the big stash of cash they have. We can observe how much they earn at the cash flow statements:
| Dividend Income Received | Interest Income Received | Total | |
| 2024 | 149 mil | 32 mil | 181 mil |
| 2023 | 136 mil | 19 mil | 155 mil |
| 2022 | 103 mil | 4 mil | 107 mil |
| 2021 | 85 mil | 1.5 mil | 87 mil |
| 2020 | 98 mil | 6 mil | 104 mil |
| 2019 | 106 mil | 8 mil | 114 mil |
| 2018 | 50 mil | 7 mil | 57 mil |
| 2017 | 34 mil | 4 mil | 38 mil |
The higher interest rate after 2022 have helped Haw Par. The interest earn is almost 5 times in 2023 and now 8 times that of the interest in 2017. The interest almost pays 20 cent in dividend by itself.
Dividends received have grown over time as UOB and UOL pays out more dividends.
Haw Par’s Healthcare
Segmental healthcare side of things:
| Year | Segment Revenue | Segment Profit | Segment Assets | Return on Assets |
| 2024 | $226 mil | $62 mil | $162 mil | 38% |
| 2023 | $213 mil | $64 mil | $153 mil | 42% |
| 2022 | $164 mil | $40 mil | $124 mil | 32% |
| 2021 | $125 mil | $21 mil | $180 mil | 17% |
| 2020 | $95 mil | $16 mil | $157 mil | 10% |
| 2019 | $224 mil | $74 mil | $167 mil | 44% |
| 2018 | $218 mil | $77 mil | $155 mil | 50% |
| 2017 | $202 mil | $69 mil | $107 mil | 34% |
| 2016 | $177 mil | $66 mil | $89 mil | 37% |
In the past, I use 2 different levels of PE valuation to give you a sensing of how much this business is worth.
- 15 times PE: $62 x 15 = $0.93 billion.
- 20 times PE: $62 x 20 = $1.24 billion.
Haw Par’s Worth if It Ever Gets Unlocked
Which I don’t think it will be for some time.
Haw Par’s value is made up of:
- Value of Strategic Assets in UOB and UOL Shares: $3.07 bil
- Net Cash: $888 mil
- Haw Par at 15 times valuation: $930 mil
Total $4.9 billion against the current market capitalization of $2.6 billion or 0.53 times discount.
Let us do an XIRR check if we assume today’s valuation is fair and that the company continues to add $100 mil in cash for the next 10 years, with a dividend step up of $0.05 every 2 years.
An IRR of 8.7% is pretty reasonable. You can imagine that you are buying an asset that gives you a compounded growth of 8.7% p.a. for the next 10 years. Is that attractive? Probably not so much if we classify Haw Par as a company with lower risk, higher quality, with more predictable earnings. Instead of a 10% hurdle, we can accept a hurdle of 8%, which is where Haw Par is trading at currently.
Let me extend this to twenty years.
The IRR is lower at 7.8% and I think is because by keeping the annual cash added to the value to be $100 mil, zero growth for Haw Par healthcare (Tiger Balm), I am assuming some curtailed growth. Is that reasonable? I think that is conservative but I don’t mind picking up a 7.8% p.a. growth over 20 years. $35,000 can get back $157,000 is not bad.
If you want to trade these stocks I mentioned, you can open an account with Interactive Brokers. Interactive Brokers is the leading low-cost and efficient broker I use and trust to invest & trade my holdings in Singapore, the United States, London Stock Exchange and Hong Kong Stock Exchange. They allow you to trade stocks, ETFs, options, futures, forex, bonds and funds worldwide from a single integrated account.
You can read more about my thoughts about Interactive Brokers in this Interactive Brokers Deep Dive Series, starting with how to create & fund your Interactive Brokers account easily.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Insurance Start-up Havend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith’s current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
