Initially available only in its distinctive, recognisable hexagonal jar as a waxy ointment, Tiger Balm is now part of an extensive product line that includes plasters, lotions, rubs, and sprays to suit diverse individual preferences.
In FY2024 ended Dec 31, 2025, Haw Par Corporation’s healthcare segment — comprising mainly the Tiger Balm line — contributed around $62.5 million in profit before tax, 280% higher than FY2020’s $16.2 million, which was severely impacted by the Covid-19 pandemic. While earnings have recovered, they are still below FY2018’s peak of more than $77.2 million and FY2023’s $64.8 million.
However, what is most interesting about Haw Par for investors is not its colourful history (which has been publicly documented) or its association with its flagship Tiger Balm. Instead, it is the company’s shareholdings in United Overseas Bank (UOB) and UOL Group.
As of FY2024 ended Dec 31, Haw Par held around 74.85 million UOB shares and just over 72 million UOL shares, yielding more than $129 million and $14 million in dividend income, respectively. If there are no changes in Haw Par’s interests in UOB and UOL, the stake in UOB is worth $2.86 billion, while UOL’s is nearly $781 million as at Jan 31.
Overall, Haw Par’s investment segment contributed more than $176 million, representing more than 70% of pre-tax profit for FY2024. Har Par’s other businesses include property and tourism, which reported around $10.2 million in pre-tax profit, with an associate contributing the remaining $4.2 million.
While Har Par’s earnings stand out for its investment income, its balance sheet stands out even more among Singapore-listed companies; it is arguably an impregnable fortress built to withstand not one but multiple black swan events.
According to its most recent six-month report, ended June 30, 2025, Haw Par’s cash holdings stood at nearly $700 million. Total liabilities were around $125 million, a fraction of total assets that were over $4.2 billion.
In an unrated July 2025 report, DBS estimates that Haw Par’s businesses are worth around $23.50 per share, with fair value at $18.80, assuming a 20% trading discount.
Analysts Dale Lai and Derek Tan note that the healthcare segment delivered “strong” gross margins in FY2024, and that Har Par’s new manufacturing plant in Johor Bahru is a potential growth catalyst. They also note that the segment’s low capex requirements enable Haw Par to maintain consistent cash surpluses.
The cash holdings are, of course, augmented by the company’s investment income, giving Haw Par the firepower to distribute consistent dividends to shareholders. With historical payout ratios at around 35%–45%, Lai and Tan are confident in the company’s ability to continue dividend payouts and even have the flexibility to increase dividends to the 60–70 cent range from the current 40 cents, while retaining a “considerable” portion for future reinvestment. In view of this, the counter is deemed one of its few “value unlock” picks.
DBS also believes Haw Par has the potential to unlock value from its investment properties in Singapore. Both Haw Par Centre and Har Par Glass Tower are located in a prime area near Orchard Road. Lai and Tan suggest that these two properties could be converted into hotels or co-living spaces, with their prime location enhancing their appeal and commercial viability.
Based on sum-of-the-parts — high margin healthcare, recurring dividend income, prime investment properties and fortress balance sheet — valuation of Haw Par’s business, Lai and Tan conclude that Har Paw, at less than $14 per share when the report was issued, was undervalued by the market which provided an opportunity for investors to take advantage of a “persistent” valuation gap.
