Stock research on global mid-cap companies, Evaluate Research

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Stock research on global mid-cap companies

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a 20-25 page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish Update Notes covering quarterly earnings, major corporate events, etc.

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Equity Bottom-Up

Haw Par reported mixed Q2 [ended June] FY16 results where the revenue was broadly in-line with our estimates but the bottom-line fell short by 34%. For the reported quarter, the company posted SG$ 52.6 million in revenues, up 2.8% YoY, driven by growth in revenue from the Property and Leisure segments. However, operating income fell 18.7% YoY to SG$ 51 million mainly due to a 26% decline in other income [which includes lower dividend and investment income from the group’s equity investments].
Net profit decreased by 58.3% to SG$ 48.4 million as compared with the same period last year mainly due to weak dividend income and large one-time gain reported in last year’s Q2FY15 from partial disposal and reclassification of Hua Han Health Industry Holdings Ltd. [previously an associate company of Haw Par]. EPS came at SG$ 0.22 against SG$ 0.53 in the prior year quarter.

Haw Par reported mixed Q2 [ended June] FY16 results where the revenue was broadly in-line with our estimates but the bottom-line fell short by 34%. For the reported quarter, the company posted SG$ 52.6 million in revenues, up 2.8% YoY, driven by growth in revenue from the Property and Leisure segments. However, operating income fell 18.7% YoY to SG$ 51 million mainly due to a 26% decline in other income [which includes lower dividend and investment income from the group’s equity investments].
Net profit decreased by 58.3% to SG$ 48.4 million as compared with the same period last year mainly due to weak dividend income and large one-time gain reported in last year’s Q2FY15 from partial disposal and reclassification of Hua Han Health Industry Holdings Ltd. [previously an associate company of Haw Par]. EPS came at SG$ 0.22 against SG$ 0.53 in the prior year quarter.

Haw Par is one of the leading manufacturers and distributors of healthcare products globally. The company’s most popular product, Tiger Balm, is amongst the world’s leading topical analgesics with over 100 years of proven success in more than 100 countries. The company operates an extensive distribution channel located across Asia, America and Europe. Additionally, the company owns and operates Oceanariums. Haw Par has investments in various listed equities which provide huge dividend income. The company has grown over the years and we expect the company to grow going forward, driven by numerous catalysts which are likely to unfold in the coming period.
Our 12-month price target on the stock is SG$ 15.00 which represents about 71% total return from current levels. Our price target is based on lower of DCF and P/E methodologies. Our DCF based price is SG$ 16.00 which assumes 11.3% WACC and 2.5% terminal growth rate. We apply an 18.6x on our FY2017 EPS estimate of SG$ 0.81 which comes to SG$ 15.00 per share. See DCF details further in the report.

Haw Par is one of the leading manufacturers and distributors of healthcare products globally. The company’s most popular product, Tiger Balm, is amongst the world’s leading topical analgesics with over 100 years of proven success in more than 100 countries. The company operates an extensive distribution channel located across Asia, America and Europe. Additionally, the company owns and operates Oceanariums. Haw Par has investments in various listed equities which provide huge dividend income. The company has grown over the years and we expect the company to grow going forward, driven by numerous catalysts which are likely to unfold in the coming period.
Our 12-month price target on the stock is SG$ 15.00 which represents about 71% total return from current levels. Our price target is based on lower of DCF and P/E methodologies. Our DCF based price is SG$ 16.00 which assumes 11.3% WACC and 2.5% terminal growth rate. We apply an 18.6x on our FY2017 EPS estimate of SG$ 0.81 which comes to SG$ 15.00 per share. See DCF details further in the report.

Singapore

Haw Par Corporation Limited is an investment holding company whose subsidiaries manufacture, market, and trade healthcare products under the Tiger and Kwan Loong brand names.  The Company also manufactures dietary supplements and pharmaceuticals, and operates recreational centers.  Haw Par invests in properties and securities.

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Haw Par Corp (HPAR SP)

Haw Par Corp: 2QFY2016 Earnings Update

Haw Par reported mixed Q2 [ended June] FY16 results where the revenue was broadly in-line with our estimates but the bottom-line fell short by 34%....

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Haw Par Corp: Initiation Report

Haw Par is one of the leading manufacturers and distributors of healthcare products globally. The company’s most popular product, Tiger Balm, is...

Evaluate Research

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