Haw Par Corporation Limited: 1H2025 Financial Results Analysis
Haw Par Corporation Limited, a Singapore-based conglomerate listed on the Singapore Exchange, has released its unaudited condensed interim consolidated financial statements for the half year ended 30 June 2025. The Group is primarily engaged in the manufacture and marketing of healthcare products (notably under the “Tiger” brand), leisure-related goods and services, and long-term investments in properties and securities.
Key Financial Metrics – 1H2025 vs 1H2024
| Metric |
1H2025 |
2H2024 |
1H2024 |
YoY Change |
QoQ Change |
| Revenue |
\$126.3m |
\$118.1m |
\$118.1m |
+7.0% |
+7.0% |
| Gross Profit |
\$71.4m |
\$64.5m |
\$64.5m |
+10.8% |
+10.8% |
| Other Income |
\$116.8m |
\$97.2m |
\$97.2m |
+20.3% |
+20.3% |
| Profit Before Tax |
\$152.0m |
\$129.2m |
\$129.2m |
+17.7% |
+17.7% |
| Net Profit |
\$144.1m |
\$122.0m |
\$122.0m |
+18.2% |
+18.2% |
| EPS (Basic & Diluted) |
65.1 cents |
55.1 cents |
55.1 cents |
+18.1% |
+18.1% |
| Dividend per Share (paid) |
120 cents |
20 cents |
20 cents |
+500% |
+500% |
| Net Asset Value per Share |
\$18.44 |
\$18.74 |
\$16.71 |
+10.4% |
-1.6% |
Historical Performance Trends
- Revenue Growth: Revenue increased 7.0% YoY, driven by resilient demand for healthcare products and favorable product mix, lifting gross margins from 54.6% to 56.5%.
- Other Income: Other income surged 20.3%, mainly due to higher dividends received from strategic and long-term investments.
- Profitability: Net profit rose 18.2%, and EPS increased 18.1%, reflecting robust operational performance and higher returns from investments.
- Dividend Policy: The Group paid a special and final dividend of 120 cents per share in 1H2025, a significant increase compared to 20 cents in 1H2024.
- Asset Mix: Investment in debt securities declined 62% as matured tranches were shifted to bank deposits due to lower treasury bill yields.
Exceptional Earnings or Expenses
- General & Administrative Expenses: Jumped 49.2% primarily due to net foreign currency losses in 1H2025 versus foreign currency gains in 1H2024.
- Finance Expenses: Decreased 24.8% due to lower borrowing rates.
Dividends
- Paid: In 1H2025, a final dividend of 20 cents per share and a special dividend of \$1.00 per share were paid, totaling 120 cents. This is a substantial increase from the previous year’s payout of 20 cents per share.
- Proposed: The First & Interim Dividend for 2025 is 20 cents per ordinary share, tax-exempt (one-tier), payable on 11 September 2025.
Macroeconomic and Industry Environment
- Management notes that “prolonged uncertainty surrounding trade policies and tariffs may further weigh on the slowing global economy,” with expectations that weaker consumer spending could affect the Group’s operating businesses in the next 12 months.
Related Party Transactions & Other Corporate Actions
- No material related party transactions or share buybacks/dilution occurred during the period.
- No divestments, fundraising, IPOs, or significant asset sales were reported.
Chairman’s Statement and Board Confirmation
The Board of Directors stated: “The Board of Directors hereby confirms that, to the best of its knowledge, nothing has come to its attention which may render the unaudited financial results of the Group for the half year ended 30 June 2025 to be false or misleading in any material aspect.”
Tone: Neutral and factual, with no forward-looking optimism or pessimism expressed.
Conclusion & Investment Recommendations
Overall Financial Performance: The Group delivered a strong set of results in 1H2025, with double-digit increases in revenue, profit, and EPS. Dividend payouts were exceptionally generous, supported by robust investment income. However, management cautions about macroeconomic headwinds and potential pressures on consumer spending that may temper future growth.
- If you currently hold Haw Par shares:
- The company’s fundamentals are solid, with strong cash reserves, high profitability, and a history of consistent dividends. Investors may consider maintaining their position, especially in light of attractive dividend payouts and solid asset backing. However, it is prudent to monitor macroeconomic risks and any signs of weakening operational performance.
- If you do not currently hold Haw Par shares:
- While current valuations appear supported by strong results and high dividend yield, new investors should be cautious due to potential macroeconomic uncertainties and the risk of slower consumer spending impacting future earnings. Consider entering on price corrections or further evidence of sustained operational resilience.
Disclaimer: The above views are based strictly on Haw Par Corporation’s published financial statements for the period ended 30 June 2025. This is not investment advice. Investors should consult their own financial advisors and consider their own risk profiles before making investment decisions.
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