Haw Par Corp posts 7.3% rise in Q2 profit

SINGAPORE-LISTED Haw Par Corporation on Friday posted a year-on-year growth in its second-quarter net profit, boosted by higher sales in its healthcare segment and absence of a one-off cost incurred.

Net profit for the three months ended June 30 came in 7.3 per cent higher at S$51.9 million, while it rose 10.6 per cent to S$69.2 million in the first half of 2017.

Revenue in Q2 climbed 15 per cent to S$60.5 million, while it grew 15.6 per cent to S$121.4 million in H1 2017.

The group said demand for its Tiger Balm products in Q2 grew following the expansion in distribution network and increase in marketing activities. But revenue growth was partially offset by lower revenue from the leisure segment.

Cost of sales for the quarter went up by 2.1 per cent to S$21.8 million and up 6.2 per cent to S$43.8 million in the first half.

Earnings per share in Q2 came in at 23.6 Singapore cents, up from 22.1 Singapore cents a year ago, while net asset value was S$12.90, up from S$11.29 as at end-December 2016.

A first and interim dividend of 10 Singapore cents per share has been declared and is payable in September.

Looking ahead, the group said its investments and net assets will continue to be affected by the volatility of global financial markets.

"The key markets where healthcare operates in depend on continued tourist inflows and geopolitical stability in order to sustain growth.

"The proposed disposal of 60 million UIC shares in exchange for 27.27 million UOL shares is subject to shareholders' approval in August 2017. If the proposed transaction is approved, the group's strategic investment portfolio will change accordingly to include a larger shareholding of 8.57 per cent (from 5.51 per cent) in UOL Group Limited."