Haw Par

Haw Par: CS met management of Haw Par for an update on the co. Grp has two operating businesses—healthcare (the famous "Tiger" brand of pain relief balms) and leisure (underwater theme attractions in SG and Thailand)—income generating commercial properties in SG, Malaysia and Hong Kong, a large investment book (UOB, UOL and UIC) and huge net cash. Healthcare accounted for 20% of operating profits. OP grew 10% YoY in 2012, and management expects a strong performance in 2013. HPAR expects 10-15% top-line growth on higher penetration in the long run, with cost control helping margins. The Sentosa aquarium has seen a material reduction in visitor arrivals due to competition from new attractions in the vicinity. HPAR has another four years of lease left, but does not have a ROFR on new development. The company believes leisure is high risk/reward, and that it needs to be careful about new investments. HPAR feels acquisitions are the way forward in the long run, but it is not close to finalizing anything in the near term. The carrying value of investments + cash account for 78% of its gross asset in 2013.