Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
Back on the 27 July, Chinese search-engine <a href="https://www.smartkarma.com/entities/sogou-inc" target="_blank" data-smartkarma-citation="entities:25996:1" rel="noopener">Sogou Inc (SOGO US)</a>, majority-owned by <a href="https://www.smartkarma.com/entities/sohu-com-ltd" target="_blank" data-smartkarma-citation="entities:22853:1" rel="noopener">Sohu.com Inc (SOHU US)</a>  and <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="http://app.quotemedia.com/data/downloadFiling?webmasterId=101533&amp;ref=115257193&amp;type=PDF&amp;symbol=SOGO&amp;companyName=Sogou+Inc.+American+Depositary+Shares+each+representing+one+Class+A&amp;formType=6-K&amp;dateFiled=2020-09-29&amp;CK=1713947" target="_blank" rel="noopener">entered</a> into a definitive agreement for a "Going-Private Transaction" at US$9/share.
Additionally, Sohu entered into a SPA with Tencent concerning its stake in Sogou, which would result in Tencent holding not less than 90% of the voting power in Sogou. Therefore the Merger would be a short-form merger - there is no vote. Dissenting rights will, however, now be afforded following the Grand Court of  Cayman Islands ruling handed down on the 28 January this year and discussed in <a href="https://skr.ma/H7E1t" target="_blank" rel="noopener">Changyou (CYOU US): Short-Form Merger Dissent Now Permitted</a>. Sohu's privatisation of Changyou competed on the 17 April.
</div><div>
The deal appeared to be a lock, until Sogou's 1 December <a href="http://app.quotemedia.com/data/downloadFiling?webmasterId=101533&amp;ref=115473750&amp;type=PDF&amp;symbol=SOGO&amp;companyName=Sogou+Inc.+American+Depositary+Shares+each+representing+one+Class+A&amp;formType=SC+13E3%2FA&amp;dateFiled=2020-12-01&amp;CK=1713947" target="_blank" rel="noopener">SEC filing</a>, wherein the termination date for the SPA was pushed out to 31 July, from 29 March previously, to allow clearance from the PRC regulatory authorities, specifically State Administration for Market Regulation or SAMR.
What seemed an ample extension at the time now appears less assured as SAMR bears down on the tech sector. 
This muddies when (and potentially if) the merger goes through. Plus the knock-on effect to Sohu which would pocket ~US$1.2bn under the merger compared to its current maker cap of ~US$0.7bn.
But Tencent is unlikely to walk - not at this Offer price. 
</div><div>More below the fold.</div>


Back on the 27 July, Chinese search-engine Sogou Inc (SOGO US), majority-owned by Sohu.com Inc (SOHU US)  and Tencent Holdings (700 HK), entered into a definitive agreement for a "Going-Private Transaction" at US$9/share.
Additionally, Sohu entered into a SPA with Tencent concerning its stake in Sogou, which would result in Tencent holding not less than 90% of the voting power in Sogou. Therefore the Merger would be a short-form merger - there is no vote. Dissenting rights will, however, now be afforded following the Grand Court of  Cayman Islands ruling handed down on the 28 January this year and discussed in Changyou (CYOU US): Short-Form Merger Dissent Now Permitted. Sohu's privatisation of Changyou competed on the 17 April.

The deal appeared to be a lock, until Sogou's 1 December SEC filing, wherein the termination date for the SPA was pushed out to 31 July, from 29 March previously, to allow clearance from the PRC regulatory authorities, specifically State Administration for Market Regulation or SAMR.
What seemed an ample extension at the time now appears less assured as SAMR bears down on the tech sector. 
This muddies when (and potentially if) the merger goes through. Plus the knock-on effect to Sohu which would pocket ~US$1.2bn under the merger compared to its current maker cap of ~US$0.7bn.
But Tencent is unlikely to walk - not at this Offer price. 
More below the fold.

Sohu/Sogou: Persuasive Situation Amid Ongoing Antitrust Investigations

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Anta Sports Products / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a>'s Chairman aims to raise around US$1.5bn via selling a 3.3% stake in the company. In this note, we will run the deal through our framework and talk about deal dynamics. We have covered one of the earlier placements in the stock in 2017, <a href="https://www.smartkarma.com/insights/anta-sports-raising-for-hopefully-a-good-acquisition-great-track-record-helps" target="_blank" rel="noopener">Anta Sports - Raising for Hopefully a Good Acquisition, Great Track Record Helps</a>.

Anta Sports Products (2020 HK)'s Chairman aims to raise around US$1.5bn via selling a 3.3% stake in the company. In this note, we will run the deal through our framework and talk about deal dynamics. We have covered one of the earlier placements in the stock in 2017, Anta Sports - Raising for Hopefully a Good Acquisition, Great Track Record Helps.

Anta Sports Placement - Has Been Doing Well but the Chairman Selling Will Be -Ve for Sentiment

Linklogis, a technology solution provider for supply chain finance in China, is aiming to raise around US$500m in its Hong Kong IPO. Its investors include Tencent, GIC and Standard Chartered Bank.Linklogis’ cloud-native solutions optimize the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. As per CIC, Linklogis was the leader among technology solution providers in China in terms of supply chain finance transactions processed over 9M20, accounting for 20.5% market share.Linklogis overall revenue grew by 83% YoY in FY19 and was up another 52% over 9M20. While its core function of Supply Chain finance has been registering strong growth of 64.4% YoY in FY19 and 53.8% in 9M20, revenue from its Emerging solutions was up nearly 6x in FY19 and grew by another 38% over 9M20.In this insight, I'll cover the positive aspects of the deal.

Linklogis, a technology solution provider for supply chain finance in China, is aiming to raise around US$500m in its Hong Kong IPO. Its investors include Tencent, GIC and Standard Chartered Bank.Linklogis’ cloud-native solutions optimize the payment cycle of supply chain transactions and digitalize the entire workflow of supply chain finance. As per CIC, Linklogis was the leader among technology solution providers in China in terms of supply chain finance transactions processed over 9M20, accounting for 20.5% market share.Linklogis overall revenue grew by 83% YoY in FY19 and was up another 52% over 9M20. While its core function of Supply Chain finance has been registering strong growth of 64.4% YoY in FY19 and 53.8% in 9M20, revenue from its Emerging solutions was up nearly 6x in FY19 and grew by another 38% over 9M20.In this insight, I'll cover the positive aspects of the deal.

Linklogis Pre-IPO - The Positives - Fast Growing Blockchain Driven Supply Chain Financier

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-02/Capture_17.PNG' alt='HawPar-CEO' />
 </figure>
 <div class='content-caption'>HawPar-CEO</div>
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Wee Ee Lim sees himself as the custodian of a rich and diverse legacy, one that has withstood the test of time.

The 59-year-old runs SGX-listed healthcare and leisure company Haw Par Corporation, which celebrated its Golden Jubilee in 2019. The Group’s topical analgesic Tiger Balm brand, which has crossed the century-old mark, is its crown jewel.

“As CEO, I take on the role of caretaker of this company and the brand for future generations,” Wee noted.

“My team and I constantly remind ourselves that we are guardians, and since we have benefitted from the contributions of generations before us, we are equally committed to further build and invest in Haw Par and Tiger Balm to safeguard this legacy.”

Wee is a scion of 92-year-old property and banking magnate Wee Cho Yaw, the Non-Executive and Non-Independent Chairman of Haw Par. The younger Wee joined the Group as a marketing executive in 1986, before rising through the ranks to take on the role of President and Chief Executive Officer in 2003.

A Bachelor of Arts in Economics graduate from Clark University in the US, Wee Ee Lim also holds directorships in SGX-listed property companies UOL Group and United Industrial Corporation, as well as the Wee Foundation.

When the younger Wee entered the Haw Par Group 35 years ago, it was a conglomerate with diversified businesses. Its portfolio ranged from pharmaceuticals - not just Tiger Balm but also generic drugs - and consumer electronics, to industrial and engineering, textile manufacturing and trade, as well as the distribution of sports gear and apparel for brands such as Nike, Adidas and Prince.

“It was difficult to understand and manage all these businesses from very different sectors. We were out of focus and the management was being pulled in different directions,” he recalled.

Subsequently, under Wee Ee Lim’s direction, the Group began sharpening its focus and divesting unprofitable divisions. “Following that, we were able to achieve a higher ROI, with less earnings volatility,” he said.

“In fact, I would say that we’ve become over-focused, with just two operating divisions - Healthcare and Leisure.”

As a result, uppermost on his mind has been the search for new engines of growth, to take Haw Par’s business to the next level.

Dry Powder

“Over the decades, Haw Par has built up a strong balance sheet and cash position through prudent management - we could have used the financial resources accumulated to add another significant leg for the Group to grow our business, though not for lack of trying,” he noted. “But valuations in a low-interest rate environment have been very high, and patience is important during these times.”

“Whatever it is, we’re not stopping. We continue to channel energies towards this area, and with the economic downturn due to COVID-19, there may be more opportunities for acquisitions, and we may succeed,” he added.

“We’re keeping our powder dry so that we can strike when we need to - I have some years to go, and I want to build at least another leg for Haw Par for the next generation.”

In July 1969, Haw Par Brothers International Ltd was incorporated, named after the Aw brothers - Boon Haw and Boon Par - who created Tiger Balm. “Haw” and “Par” mean “tiger” and “leopard” respectively in the Chinese dialect.

Haw Par shares began trading in November 1969 on the then Stock Exchange of Malaysia and Singapore. Amongst the businesses included in the listing were Tiger Balm and substantial stakes in Sin Poh (Star News), the publisher of the Chinese newspaper Sin Chew Jit Poh. However, in 1975, accounting irregularities were uncovered by the authorities, leading to the near-collapse of Haw Par.

The Government of Singapore intervened, and a new board, headed by Michael Fam, and which included industry leaders such as Wee Cho Yaw, was formed to put the house in order. In 1978, the senior Wee was appointed Chairman of Haw Par, after which he put in place a new leadership team and consolidated the business. The company’s name was changed to Haw Par Corporation in 1997.

 

Haw Par Corporation was recognised by The Financial Times in the FT 1000 High-Growth Companies Asia Pacific 2018 and 2020, and by The Straits Times in the ST Singapore’s Fastest Growing Companies 2019 and 2020.

Leisure used to account for a substantial portion of Haw Par’s revenues when it owned and operated attractions like Underwater World Singapore and held stakes in L’Aquarium in Barcelona. But the Group shuttered Underwater World Singapore in 2016 due to lease expiry, and was left with Underwater World Pattaya, a boutique aquarium in Thailand.

“However, I am hopeful that the skillsets and experience we’ve acquired will open a window of opportunity for us to expand into other leisure businesses,” the younger Wee said.

Unique DNA

In the meantime, Healthcare remains the Group’s key area of focus. “Currently, the largest contributor to Healthcare comes from our Tiger Balm brand, which possesses a unique history and DNA,” he noted.

Tiger Balm’s range of topical remedies treats discomforts brought on by different activities and lifestyles, including headaches, colds, rheumatic or arthritic pains, as well as muscle strains.

“Global brands have significant home markets to support their growth, but not Tiger Balm - Singapore is small, with no significant home market to rely on,” he pointed out.

The Aw brothers founded Tiger Balm in the 1900s in Burma and moved into Singapore in 1926. They tapped on their network of newspapers in the region to advertise and promote Tiger Balm. From the 1920s to the 1950s, with Singapore as the base, they succeeded in extending the brand’s presence beyond Indochina, into markets like Hong Kong, Thailand and Malaysia, where Tiger Balm became a household name.

“In fact, when you ask, ‘Where is Tiger Balm from?’, people from different parts of Asia will claim it as their home-grown brand,” he added.

“By taking Tiger Balm on its journey across the region, the Aw brothers have enriched its DNA, enabled it to transcend geographical boundaries and evolve into a truly Asian brand.”

An early foothold in Europe and America, established by the current management during the globalisation thrust in the late 1970s, also adds to the brand’s advantage, as mainstream acceptance in the West leads to the use of Tiger Balm catching on with younger consumers in Asia. Today, Tiger Balm has a presence in more than 100 countries.

For the brand to thrive, it must be rejuvenated, and remain an integral part of people’s lives, he noted.

“Cognisant of this, the management of Haw Par has, over time, revived the Tiger Balm brand in order to align with consumers’ changing lifestyles and outlooks, correcting the misperception that Tiger Balm is “my grandmother’s product”, aged and old-fashioned.”

Over the decades, the Group has strengthened its brand equity by widening Tiger Balm’s appeal across demographics, introducing the “Balance” range for those seeking to restore balance to their hectic lifestyles, the “Active” range that caters to the fitness-conscious, as well as the all-natural Tiger Balm mosquito repellent patch under the “Junior” range to keep children safe from dengue and Zika.

Brand Metamorphosis

From a single pain relief product, Tiger Balm has transformed into a lifestyle care brand that connects with consumers at a deeper level, Wee said. Beyond alleviating pain, consumers have begun to appreciate its soothing scent, using Tiger Balm to relax and rejuvenate.

It has developed a loyal following, ranging from leading sports figures and Hollywood celebrities, to the regular person on the street.

“More powerful than any paid advertising, unsolicited word-of-mouth endorsements of Tiger Balm in both traditional and social media lend authenticity to the brand, making Tiger Balm relatable to younger generations of consumers,” he pointed out.

Likewise, the growth of a vibrant Tiger Balm community online continues to boost brand equity. “As e-commerce and social commerce take on greater prominence, especially during COVID-19, we’re gratified to find that strong support for Tiger Balm online offers potential,” he noted.

“While this is still an insignificant part of our business, we’ve been diverting more time and resources to this area, working with our partners to ensure accessibility of our products via online channels.”

Meanwhile, challenges loom, not the least of which is COVID-19. “Stricter healthcare regulatory frameworks also continue to raise the bar for market entry of new products, lengthening time needed for product introductions to certain markets,” he pointed out.

“While the pandemic has impacted our business and presented hurdles, it has prompted increased focus on self-care, in which Tiger Balm plays a key role,” he said.

In addition, there are broader trends in the Group’s favour, such as the emergence of a huge middle class concerned about health, fitness and well-being, with a preference for natural and herbal solutions. Ageing populations and digital lifestyles also continue to spur demand for viable approaches to manage aches and pains.

“As a herbal remedy and name that has been trusted by generations to provide care, healing and comfort, Tiger Balm is well-positioned to ride these trends,” Wee noted.

Deepening knowledge of its consumers and markets remains key for Haw Par. “We're in so many countries - I'll be the last person to claim that I know every market thoroughly," he added. "Through understanding these markets better, we will uncover more opportunities. Currently, we're only touching the surface - there's untapped potential yet to be realised." Haw Par Corporation

Haw Par, a Singapore-grown multinational group, has been listed on SGX since 1969. Over the decades, the Group has been disciplined in asset rationalisation, organically growing its core businesses, and making selected acquisitions. Today, the Haw Par Group is an enterprise with a strong consumer healthcare business that promotes healthy lifestyles through its healthcare products. The largest contributor to the healthcare business comes from its Tiger Balm brand. With a wide range of products available in over 100 countries, Tiger Balm is arguably the world’s leading and most versatile topical analgesic brand. Besides the consumer healthcare business, the Group also engages in leisure businesses, and holds significant investments in securities and properties.

The company website is: <a href="http://www.hawpar.com">www.hawpar.com</a> 
Click <a href="https://www.sgx.com/securities/equities/H02">here </a>for the company's StockFacts page. 
For the year ended 31 December 2020 financial results, click <a href="https://links.sgx.com/FileOpen/Haw%20Par%20FY2020%20Full%20Year%20Results%2022.2.21.ashx?App=Announcement&amp;FileID=648970">here.</a> 
 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. 
For previous editions of kopi-C: the Company brew, please click <a href="https://www.sgx.com/research-education/market-dialogues">here</a>.   
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to <a href="https://www.sgx.com/jennifer.t@sgx.com">jennifer.t@sgx.com</a>.

 
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    HawPar-CEO


Wee Ee Lim sees himself as the custodian of a rich and diverse legacy, one that has withstood the test of time.

The 59-year-old runs SGX-listed healthcare and leisure company Haw Par Corporation, which celebrated its Golden Jubilee in 2019. The Group’s topical analgesic Tiger Balm brand, which has crossed the century-old mark, is its crown jewel.

“As CEO, I take on the role of caretaker of this company and the brand for future generations,” Wee noted.

“My team and I constantly remind ourselves that we are guardians, and since we have benefitted from the contributions of generations before us, we are equally committed to further build and invest in Haw Par and Tiger Balm to safeguard this legacy.”

Wee is a scion of 92-year-old property and banking magnate Wee Cho Yaw, the Non-Executive and Non-Independent Chairman of Haw Par. The younger Wee joined the Group as a marketing executive in 1986, before rising through the ranks to take on the role of President and Chief Executive Officer in 2003.

A Bachelor of Arts in Economics graduate from Clark University in the US, Wee Ee Lim also holds directorships in SGX-listed property companies UOL Group and United Industrial Corporation, as well as the Wee Foundation.

When the younger Wee entered the Haw Par Group 35 years ago, it was a conglomerate with diversified businesses. Its portfolio ranged from pharmaceuticals - not just Tiger Balm but also generic drugs - and consumer electronics, to industrial and engineering, textile manufacturing and trade, as well as the distribution of sports gear and apparel for brands such as Nike, Adidas and Prince.

“It was difficult to understand and manage all these businesses from very different sectors. We were out of focus and the management was being pulled in different directions,” he recalled.

Subsequently, under Wee Ee Lim’s direction, the Group began sharpening its focus and divesting unprofitable divisions. “Following that, we were able to achieve a higher ROI, with less earnings volatility,” he said.

“In fact, I would say that we’ve become over-focused, with just two operating divisions - Healthcare and Leisure.”

As a result, uppermost on his mind has been the search for new engines of growth, to take Haw Par’s business to the next level.

Dry Powder

“Over the decades, Haw Par has built up a strong balance sheet and cash position through prudent management - we could have used the financial resources accumulated to add another significant leg for the Group to grow our business, though not for lack of trying,” he noted. “But valuations in a low-interest rate environment have been very high, and patience is important during these times.”

“Whatever it is, we’re not stopping. We continue to channel energies towards this area, and with the economic downturn due to COVID-19, there may be more opportunities for acquisitions, and we may succeed,” he added.

“We’re keeping our powder dry so that we can strike when we need to - I have some years to go, and I want to build at least another leg for Haw Par for the next generation.”

In July 1969, Haw Par Brothers International Ltd was incorporated, named after the Aw brothers - Boon Haw and Boon Par - who created Tiger Balm. “Haw” and “Par” mean “tiger” and “leopard” respectively in the Chinese dialect.

Haw Par shares began trading in November 1969 on the then Stock Exchange of Malaysia and Singapore. Amongst the businesses included in the listing were Tiger Balm and substantial stakes in Sin Poh (Star News), the publisher of the Chinese newspaper Sin Chew Jit Poh. However, in 1975, accounting irregularities were uncovered by the authorities, leading to the near-collapse of Haw Par.

The Government of Singapore intervened, and a new board, headed by Michael Fam, and which included industry leaders such as Wee Cho Yaw, was formed to put the house in order. In 1978, the senior Wee was appointed Chairman of Haw Par, after which he put in place a new leadership team and consolidated the business. The company’s name was changed to Haw Par Corporation in 1997.

 

Haw Par Corporation was recognised by The Financial Times in the FT 1000 High-Growth Companies Asia Pacific 2018 and 2020, and by The Straits Times in the ST Singapore’s Fastest Growing Companies 2019 and 2020.

Leisure used to account for a substantial portion of Haw Par’s revenues when it owned and operated attractions like Underwater World Singapore and held stakes in L’Aquarium in Barcelona. But the Group shuttered Underwater World Singapore in 2016 due to lease expiry, and was left with Underwater World Pattaya, a boutique aquarium in Thailand.

“However, I am hopeful that the skillsets and experience we’ve acquired will open a window of opportunity for us to expand into other leisure businesses,” the younger Wee said.

Unique DNA

In the meantime, Healthcare remains the Group’s key area of focus. “Currently, the largest contributor to Healthcare comes from our Tiger Balm brand, which possesses a unique history and DNA,” he noted.

Tiger Balm’s range of topical remedies treats discomforts brought on by different activities and lifestyles, including headaches, colds, rheumatic or arthritic pains, as well as muscle strains.

“Global brands have significant home markets to support their growth, but not Tiger Balm - Singapore is small, with no significant home market to rely on,” he pointed out.

The Aw brothers founded Tiger Balm in the 1900s in Burma and moved into Singapore in 1926. They tapped on their network of newspapers in the region to advertise and promote Tiger Balm. From the 1920s to the 1950s, with Singapore as the base, they succeeded in extending the brand’s presence beyond Indochina, into markets like Hong Kong, Thailand and Malaysia, where Tiger Balm became a household name.

“In fact, when you ask, ‘Where is Tiger Balm from?’, people from different parts of Asia will claim it as their home-grown brand,” he added.

“By taking Tiger Balm on its journey across the region, the Aw brothers have enriched its DNA, enabled it to transcend geographical boundaries and evolve into a truly Asian brand.”

An early foothold in Europe and America, established by the current management during the globalisation thrust in the late 1970s, also adds to the brand’s advantage, as mainstream acceptance in the West leads to the use of Tiger Balm catching on with younger consumers in Asia. Today, Tiger Balm has a presence in more than 100 countries.

For the brand to thrive, it must be rejuvenated, and remain an integral part of people’s lives, he noted.

“Cognisant of this, the management of Haw Par has, over time, revived the Tiger Balm brand in order to align with consumers’ changing lifestyles and outlooks, correcting the misperception that Tiger Balm is “my grandmother’s product”, aged and old-fashioned.”

Over the decades, the Group has strengthened its brand equity by widening Tiger Balm’s appeal across demographics, introducing the “Balance” range for those seeking to restore balance to their hectic lifestyles, the “Active” range that caters to the fitness-conscious, as well as the all-natural Tiger Balm mosquito repellent patch under the “Junior” range to keep children safe from dengue and Zika.

Brand Metamorphosis

From a single pain relief product, Tiger Balm has transformed into a lifestyle care brand that connects with consumers at a deeper level, Wee said. Beyond alleviating pain, consumers have begun to appreciate its soothing scent, using Tiger Balm to relax and rejuvenate.

It has developed a loyal following, ranging from leading sports figures and Hollywood celebrities, to the regular person on the street.

“More powerful than any paid advertising, unsolicited word-of-mouth endorsements of Tiger Balm in both traditional and social media lend authenticity to the brand, making Tiger Balm relatable to younger generations of consumers,” he pointed out.

Likewise, the growth of a vibrant Tiger Balm community online continues to boost brand equity. “As e-commerce and social commerce take on greater prominence, especially during COVID-19, we’re gratified to find that strong support for Tiger Balm online offers potential,” he noted.

“While this is still an insignificant part of our business, we’ve been diverting more time and resources to this area, working with our partners to ensure accessibility of our products via online channels.”

Meanwhile, challenges loom, not the least of which is COVID-19. “Stricter healthcare regulatory frameworks also continue to raise the bar for market entry of new products, lengthening time needed for product introductions to certain markets,” he pointed out.

“While the pandemic has impacted our business and presented hurdles, it has prompted increased focus on self-care, in which Tiger Balm plays a key role,” he said.

In addition, there are broader trends in the Group’s favour, such as the emergence of a huge middle class concerned about health, fitness and well-being, with a preference for natural and herbal solutions. Ageing populations and digital lifestyles also continue to spur demand for viable approaches to manage aches and pains.

“As a herbal remedy and name that has been trusted by generations to provide care, healing and comfort, Tiger Balm is well-positioned to ride these trends,” Wee noted.

Deepening knowledge of its consumers and markets remains key for Haw Par. “We're in so many countries - I'll be the last person to claim that I know every market thoroughly," he added. "Through understanding these markets better, we will uncover more opportunities. Currently, we're only touching the surface - there's untapped potential yet to be realised."   Haw Par Corporation

Haw Par, a Singapore-grown multinational group, has been listed on SGX since 1969. Over the decades, the Group has been disciplined in asset rationalisation, organically growing its core businesses, and making selected acquisitions. Today, the Haw Par Group is an enterprise with a strong consumer healthcare business that promotes healthy lifestyles through its healthcare products. The largest contributor to the healthcare business comes from its Tiger Balm brand. With a wide range of products available in over 100 countries, Tiger Balm is arguably the world’s leading and most versatile topical analgesic brand. Besides the consumer healthcare business, the Group also engages in leisure businesses, and holds significant investments in securities and properties.

The company website is: www.hawpar.com  
Click here for the company's StockFacts page.  
For the year ended 31 December 2020 financial results, click here.  
 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  
For previous editions of kopi-C: the Company brew, please click here.    
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.

 



Haw Par Corporation: A Distinguished Brand Heritage

Topsports International Holdings / Equity Capital Markets

<div>
CDH aims to raise around US$236m via selling a 2.3% stake in <a href="https://www.smartkarma.com/entities/topsports-international" target="_blank" data-smartkarma-citation="entities:28153:1" rel="noopener">Topsports International (6110 HK)</a>. This will be the second selldown in the company in a span of 7 months. 
We had covered the previous placement in Jun 2020 as well, <a href="https://www.smartkarma.com/insights/topsports-placement-parent-selling-but-discount-is-enticing-at-the-low-end" target="_blank" rel="noopener">Topsports Placement - Parent Selling but Discount Is Enticing at the Low-End.</a>
</div><div>
I've covered various aspects of the company in my earlier insights, links to which are below. In this insight, I'll talk about the deal dynamics.

</div><div>Links to my earlier insights:</div><div><ul style="list-style-type: disc;">
<li>The company's fundamentals and some of the related party issues: <a href="https://www.smartkarma.com/insights/topsports-international-holdings-pre-ipo-performing-well-but-all-proceeds-will-likely-go-to-belle" target="_blank" rel="noopener">Topsports International Holdings Pre-IPO - Performing Well but All Proceeds Will Likely Go to Belle</a>
</li>
<li>Historic growth and its implication for current operations: <a href="https://www.smartkarma.com/insights/topsports-international-pre-ipo-history-has-a-lot-to-tell-about-growth-and-margins" target="_blank" rel="noopener">Topsports International Pre-IPO - History Has a Lot to Tell About Growth and Margins</a>
</li>
<li>Compared the company's reported growth numbers with those of its two principal brands: <a href="https://www.smartkarma.com/entities/nike-inc-cl-b" target="_blank" data-smartkarma-citation="entities:6658:1" rel="noopener">Nike Inc Cl B (NKE US)</a> and <a href="https://www.smartkarma.com/entities/adidas-ag" target="_blank" data-smartkarma-citation="entities:21578:1" rel="noopener">adidas AG (ADS GR)</a>: <a href="https://www.smartkarma.com/insights/topsports-pre-ipo-quick-take-nike-adidas-data-throws-up-some-interesting-nuggets" target="_blank" rel="noopener">Topsports Pre-IPO - Quick Take - Nike &amp; Adidas Data Throws up Some Interesting Nuggets</a>
</li>
<li>Compared the company's performance with that of its main listed peer:  <a href="https://www.smartkarma.com/insights/topsports-pre-ipo-way-ahead-of-its-peer-on-most-counts" target="_blank" rel="noopener">Topsports Pre-IPO - Way Ahead of Its Peer on Most Counts</a>
</li>
<li>Commented on earnings outlook and valuation: <a href="https://www.smartkarma.com/insights/topsports-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Topsports Pre-IPO - Thoughts on Valuation</a>
</li>
<li>Updates from PHIP: <a href="https://www.smartkarma.com/insights/topsports-pre-ipo-phip-not-very-encouraging-updates-shifting-more-towards-adidas" target="_blank" rel="noopener">Topsports Pre-IPO - PHIP (Not Very Encouraging) Updates - Shifting More Towards Adidas</a>
</li>
<li>Comments on IPO price range: <a href="https://www.smartkarma.com/insights/topsports-international-ipo-looks-reasonable-towards-the-lower-end" target="_blank" rel="noopener">Topsports International IPO - Looks Reasonable Towards the Lower End</a>
</li>
<li>IPO trading update: <a href="https://www.smartkarma.com/insights/topsports-international-ipo-trading-cheap-at-the-ipo-price" target="_blank" rel="noopener">Topsports International IPO Trading - Cheap at the IPO Price</a>
</li>
<li>1H Results: <a href="https://www.smartkarma.com/insights/topsports-international-ipo-trading-1h-results-inline-but-not-very-encouraging-results" target="_blank" rel="noopener">Topsports International IPO Trading - 1H Results - Inline but Not Very Encouraging Results</a>
</li>
<li>Lock-up expiry: <a href="https://www.smartkarma.com/insights/topsports-lock-up-hasn-t-corrected-as-much-watch-out-for-the-debt-at-parent-level" target="_blank" rel="noopener">Topsports Lock-Up - Hasn’t Corrected as Much, Watch Out for the Debt at Parent Level</a>
</li>
<li>Update on Implication from Nike Results: <a href="https://www.smartkarma.com/insights/topsports-nike-results-are-encouraging-for-the-short-term-but-not-so-for-the-long-term" target="_blank" rel="noopener">Topsports - Nike Results Are Encouraging for the Short-Term but Not so for the Long Term</a>
</li>
<li>Placement in Jun 2020: <a href="https://www.smartkarma.com/insights/topsports-placement-parent-selling-but-discount-is-enticing-at-the-low-end" target="_blank" rel="noopener">Topsports Placement - Parent Selling but Discount Is Enticing at the Low-End</a>
</li>
</ul></div>


CDH aims to raise around US$236m via selling a 2.3% stake in Topsports International (6110 HK). This will be the second selldown in the company in a span of 7 months. 
We had covered the previous placement in Jun 2020 as well, Topsports Placement - Parent Selling but Discount Is Enticing at the Low-End.

I've covered various aspects of the company in my earlier insights, links to which are below. In this insight, I'll talk about the deal dynamics.

Links to my earlier insights:
The company's fundamentals and some of the related party issues: Topsports International Holdings Pre-IPO - Performing Well but All Proceeds Will Likely Go to Belle

Historic growth and its implication for current operations: Topsports International Pre-IPO - History Has a Lot to Tell About Growth and Margins

Compared the company's reported growth numbers with those of its two principal brands: Nike Inc Cl B (NKE US) and adidas AG (ADS GR): Topsports Pre-IPO - Quick Take - Nike &amp; Adidas Data Throws up Some Interesting Nuggets

Compared the company's performance with that of its main listed peer:  Topsports Pre-IPO - Way Ahead of Its Peer on Most Counts

Commented on earnings outlook and valuation: Topsports Pre-IPO - Thoughts on Valuation

Updates from PHIP: Topsports Pre-IPO - PHIP (Not Very Encouraging) Updates - Shifting More Towards Adidas

Comments on IPO price range: Topsports International IPO - Looks Reasonable Towards the Lower End

IPO trading update: Topsports International IPO Trading - Cheap at the IPO Price

1H Results: Topsports International IPO Trading - 1H Results - Inline but Not Very Encouraging Results

Lock-up expiry: Topsports Lock-Up - Hasn’t Corrected as Much, Watch Out for the Debt at Parent Level

Update on Implication from Nike Results: Topsports - Nike Results Are Encouraging for the Short-Term but Not so for the Long Term

Placement in Jun 2020: Topsports Placement - Parent Selling but Discount Is Enticing at the Low-End



Topsports Placement - Previous Deal Didn't Do Well, More to Come

United States

NIKE, Inc. designs, develops, and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children. The Company sells its products worldwide to retail stores, through its own stores, subsidiaries, and distributors.

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