Haw Par WKN: 862742 ISIN: SG1D25001158 Forum: Aktien User: Motzki2.0

Finally, Haw Par is a cash flow positive basket, with the FCF generated by the healthcare business and real estate properties, plus the substantial dividend income from the public equities.  Note that this latter form of income only shows up in cash from investing activities, not cash from operations.  Through the first nine months of 2019, dividend income was over $100M, so this is a very hefty amount of income relative to Haw Par’s EV of $2.27B enterprise value.  Add this to the $70M+ of free cash flow from the healthcare business, and you can see that Haw Par represents a significant positive carry on that NAV. As mentioned above, I am using $18.25 as a conservative NAV estimate.  I do realize that to some extent one might wish to view Haw Par like a closed end fund, where you don’t really expect to see the stock trade at full NAV.  Nonetheless, the combination of reasonable value accretion and closing of the discount to 15-20% over 18-36 would still produce a decent IRR.