Stock research on global mid-cap companies

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Stock research on global mid-cap companies, Evaluate Research

Equity Bottom-Up

Haw Par reported strong results for the fourth quarter ended December 31, 2016 beating our revenue estimate by 15%. Revenue grew by 38% during the quarter from SG$34.1 million in 4Q2015 to SG$47 million in 4Q2016. This increase came on the back of solid results from the company’s healthcare segment where revenue increased by 52% during the period. However, EPS was down by 10% from 8.6 cents in 4Q2015 to 7.8 cents in 4Q2016 due to negligible dividend income received from investments during the quarter vs. SG$17.7 million received during 4Q2015. As expected, leisure segment revenue for the quarter was down by 73% YoY on account of the closure of Underwater World Singapore (“UWS”) in June 2016. The leisure segment only contributes about 5% to total revenues.
For the full year 2016, revenue came in at SG$201.6 million vs. SG$178.8 million in FY2015, a YoY growth of 12.8%. Gross profit increased by 16% due to successful cost saving initiatives undertaken by the company. Inspite of the increase in revenue and gross profit, operating income and EPS for the year were lower than that recorded during the previous year mainly as dividend income earned from the company’s investments fell by 34.7% from SG$89.5 million in FY2015 to SG$58.4 million in FY2016. Adjusted EPS for the year came in at 57 cents vs. our estimate of 63 cents. On a YoY basis, EPS declined slightly by 3% from 59 cents achieved in FY2015. Healthcare segment revenue grew by 15.6% from SG$152.6 million in FY2015 to SG$176.4 million in FY2016 while operating profit for the segment was SG$66 million vs. SG$48.1 million during the previous year, a growth of 37.3%. Revenue from leisure segment was down 34.2% due to the closure of UWS. As for the property segment, revenue increased by 24.7% and operating profit grew by 16.9% during the period due to continued improvement in occupancy rates during the year.
Analyst: Ajeya Patil

Haw Par reported strong results for the fourth quarter ended December 31, 2016 beating our revenue estimate by 15%. Revenue grew by 38% during the quarter from SG$34.1 million in 4Q2015 to SG$47 million in 4Q2016. This increase came on the back of solid results from the company’s healthcare segment where revenue increased by 52% during the period. However, EPS was down by 10% from 8.6 cents in 4Q2015 to 7.8 cents in 4Q2016 due to negligible dividend income received from investments during the quarter vs. SG$17.7 million received during 4Q2015. As expected, leisure segment revenue for the quarter was down by 73% YoY on account of the closure of Underwater World Singapore (“UWS”) in June 2016. The leisure segment only contributes about 5% to total revenues.
For the full year 2016, revenue came in at SG$201.6 million vs. SG$178.8 million in FY2015, a YoY growth of 12.8%. Gross profit increased by 16% due to successful cost saving initiatives undertaken by the company. Inspite of the increase in revenue and gross profit, operating income and EPS for the year were lower than that recorded during the previous year mainly as dividend income earned from the company’s investments fell by 34.7% from SG$89.5 million in FY2015 to SG$58.4 million in FY2016. Adjusted EPS for the year came in at 57 cents vs. our estimate of 63 cents. On a YoY basis, EPS declined slightly by 3% from 59 cents achieved in FY2015. Healthcare segment revenue grew by 15.6% from SG$152.6 million in FY2015 to SG$176.4 million in FY2016 while operating profit for the segment was SG$66 million vs. SG$48.1 million during the previous year, a growth of 37.3%. Revenue from leisure segment was down 34.2% due to the closure of UWS. As for the property segment, revenue increased by 24.7% and operating profit grew by 16.9% during the period due to continued improvement in occupancy rates during the year.
Analyst: Ajeya Patil

Haw Par Corp

Healthcare Segment Drives Revenue Beat