Stock research on global mid-cap companies

Evaluate Research

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.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet etc.

Stock research on global mid-cap companies, Evaluate Research

Equity Bottom-Up

-4.4% EPS &amp; +7.4% Revenue Growth
Haw Par reported revenue of SG$53.4 mn for 3Q2017, growth of 7.4% YoY, driven by strong sales in the healthcare segment as demand for Tiger Balm products remained strong especially in the Asian countries. However, EPS for the quarter declined by 4.4% from SG19.3 cents in 3Q2016 to SG18.4 cents in 3Q2017 mainly due to higher distribution and marketing expenses as well as higher general and administrative expenses. The company has been aggressively growing its “Tiger Balm” business by expanding its product line as well as by increasing its presence in different geographies. As a result, distribution and marketing expenses increased by 20.3% during the period from SG$10.9 mn in 3Q2016 to SG$13.1 mn in 3Q2017. We expect these expenses to remain at similar levels over the next 2 to 3 years as the company continues to expand its geographical presence and product offerings. Other income, which includes the company’s investment and interest income, was at SG$34.0 mn, up 5.1% for the quarter. For the first 9 months of FY2017, revenues are up 13.0% YoY at SG$174.8 mn while net income is up 4.6% YoY at SG$109.7 mn.
Net Cash + Investments = 114% of Market Cap
Haw Par has net cash of SG$350.5 mn or SG$1.59 per share on its balance sheet. The value of its investment holdings is SG$2,459.3 mn or SG$11.18 per share and the company carries its investment properties at a fair value of SG$211.4 mn or SG$0.96 on its books. Together, the value of its net cash and investments add up to SG$13.73per share which is almost 14% higher than the company’s current stock price of SG$12.00 per share.
Analyst: Ajeya Patil

-4.4% EPS &amp; +7.4% Revenue Growth
Haw Par reported revenue of SG$53.4 mn for 3Q2017, growth of 7.4% YoY, driven by strong sales in the healthcare segment as demand for Tiger Balm products remained strong especially in the Asian countries. However, EPS for the quarter declined by 4.4% from SG19.3 cents in 3Q2016 to SG18.4 cents in 3Q2017 mainly due to higher distribution and marketing expenses as well as higher general and administrative expenses. The company has been aggressively growing its “Tiger Balm” business by expanding its product line as well as by increasing its presence in different geographies. As a result, distribution and marketing expenses increased by 20.3% during the period from SG$10.9 mn in 3Q2016 to SG$13.1 mn in 3Q2017. We expect these expenses to remain at similar levels over the next 2 to 3 years as the company continues to expand its geographical presence and product offerings. Other income, which includes the company’s investment and interest income, was at SG$34.0 mn, up 5.1% for the quarter. For the first 9 months of FY2017, revenues are up 13.0% YoY at SG$174.8 mn while net income is up 4.6% YoY at SG$109.7 mn.
Net Cash + Investments = 114% of Market Cap
Haw Par has net cash of SG$350.5 mn or SG$1.59 per share on its balance sheet. The value of its investment holdings is SG$2,459.3 mn or SG$11.18 per share and the company carries its investment properties at a fair value of SG$211.4 mn or SG$0.96 on its books. Together, the value of its net cash and investments add up to SG$13.73per share which is almost 14% higher than the company’s current stock price of SG$12.00 per share.
Analyst: Ajeya Patil

Q3FY2017 [ended September] Earnings Update

Haw Par Corp

Q3FY2017 [ended September] Earnings Update