Haw Par Corporation

[specuvestor]

The Structure of whether the holdco (shop collecting rental) pays out their profit will be a major determinant between OPMI choosing the holdco or the durian stall If both don't then maybe the massage that gives out sufficient profit might be more attractive

[Big Toe]

I love everything durian, if all else being equal, will go for the durian stall for sure. Only durians I have not tried are the hybrid variety. Tried all commercial cultivar and most of the wild cultivars found in Borneo. (And even the kampung durians in Ubin)

But in the case of Haw Par shop, personally it would make more sense for me to invest in the shop, there is more value in the shop. Bearing in mind that this could mean an infinite timeline of holding this until something good happens. Could be years, decades or nothing happens for very long time and cash keeps swelling. Some people call it value trap but I dont agree.

[dreamybear]

Since there is some discussion on SBB / paying out dividends in the OCBC thread ( https://www.valuebuddies.com/thread-2206...#pid172366), I thought the comment(as highlighted below) might be of interest.

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https://hawpar.listedcompany.com/newsroo...5X9X.1.pdf (emphasis added)
"Mr Yeo enquired on the absence of share buyback mandate. He was of the view that share buybacks provide a higher return to the Company as compared to investment in treasury bills to which the CEO replied that the Company had carried out share buybacks in the past but found it to be ineffective as the Company’s shares did not have sufficient liquidity in the market. Furthermore, share buybacks will shrink the balance sheet of the Company, making it worse off in the long term"

[weijian]

Since there is some discussion on SBB / paying out dividends in the OCBC thread ( https://www.valuebuddies.com/thread-2206...#pid172366), I thought the comment(as highlighted below) might be of interest.

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https://hawpar.listedcompany.com/newsroo...5X9X.1.pdf (emphasis added)
"Mr Yeo enquired on the absence of share buyback mandate. He was of the view that share buybacks provide a higher return to the Company as compared to investment in treasury bills to which the CEO replied that the Company had carried out share buybacks in the past but found it to be ineffective as the Company’s shares did not have sufficient liquidity in the market. Furthermore, share buybacks will shrink the balance sheet of the Company, making it worse off in the long term"

hi dreamybear,

This reply had been discussed in the previously in this thread and so you could read back.

If shrinking the balance sheet is not the goal since it makes the company worst in the long term, then it shouldn't be giving dividends as well since it has the same effect. Maybe that is why some companies have remarkedly consistent dividends, OR had declined giving any - all to improve the balance sheet. It is just unfortunate they haven't proposed shrinking their own paycheck to improve the company's balance sheet.