Haw Par (SGX:H02) Cools After Half Year Earnings As Valuation Questions Grow

Haw Par (SGX:H02) reported its half year 2026 results on 14 August, with sales of S$115.93 million and net income of S$107.87 million, both lower than the prior year period.

See our latest analysis for Haw Par.

Haw Par's recent half year result appears to have cooled momentum, with the share price at S$15.50 and a 30 day share price return of 7.9% lower, even as the 3 year total shareholder return of 92.48% remains strong.

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With Haw Par now at S$15.50 and analyst estimates pointing materially higher, the recent pullback widens an already clear gap. The next step is to see where fair value really sits within that spread.

Price to earnings of 12.9x: Is it justified for Haw Par?

Haw Par is trading on a P/E of 12.9x, which sits below both the Singapore market and the Asian pharmaceuticals peer group, suggesting the share price is not stretching recent earnings.

The P/E ratio compares the current share price with earnings per share. For a healthcare company like Haw Par, this gives you a quick sense of how the market is valuing its current profit stream relative to other stocks.

Here the market is assigning Haw Par a lower P/E than the Singapore market average of 14x and well below the Asian pharmaceuticals industry average of 22.5x. It also sits slightly below the estimated fair P/E of 13.6x. That combination points to a market that is pricing Haw Par more conservatively than peers, while still close to the level that regression based models suggest could be a reasonable anchor over time.

Against peers, this gap is clear. Haw Par trades at 12.9x earnings, compared with a 33x peer average and a 22.5x industry average. If sentiment or expectations were to line up more closely with those broader benchmarks, there is room for the market multiple to move toward the fair ratio level highlighted by the model.

Explore the SWS fair ratio for Haw Par

Result: Price-to-earnings of 12.9x (UNDERVALUED)

However, Haw Par's recent declines over 30 and 90 days, along with softer half year earnings, could signal sentiment risks if these trends persist or deepen.

Find out about the key risks to this Haw Par narrative.

Another view on Haw Par's value

The P/E comparison presents Haw Par as relatively inexpensive, yet the SWS DCF model suggests the opposite. With Haw Par at S$15.50 and that model indicating a future cash flow value of S$6.18, the stock appears overvalued using this approach. Which lens do you place more weight on for the long term?

For a closer look at how this model works in practice, including the inputs that drive that S$6.18 figure, Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Haw Par for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 257 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Given the mix of cautious and optimistic signals around Haw Par, this is a moment to move quickly, review the underlying data yourself, and weigh both sides of the story by checking the 4 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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