The Hour Glass

Has there been a raise in middle class non-essential expenditure in covid19? do we just buy a $5K rolex just bcos we cannot spend on our holidays? maybe...

is JJ our "normal" working person? representative of middle working class? hardly sir..JJ is a super-star and rakes in millions...

Why is sg's properties still so hot and deserving of cooling measures?!! cheap credit??

There MUST be some value-add that recent buyers see in THG's, new purchased properties?, new rental streams? zero-installment plan for buying 100K PP watch? or $1milo RM watch?? :O

numbers, numbers, numbers, where are the latest numbers?!!

But when i visit THG stores at Paragon and Taka, there's no customers.

(03-03-2021, 03:24 PM)Choon Wrote: But when i visit THG stores at Paragon and Taka, there's no customers.

same observation at Vivocity sir for last 6 months... :O :O 

digital selling, walk-in via e-appointment only? 

The shops are empty because there are no more watches to sell. Rolex / PP are allocation based and customers must spend a certain amount before being offered a 'desirable' model.

THG selling model is now similar to Hermes

Yes. That much is true about severe shortage for many collectable luxury items, not just watches. The shortage not only is causing prices to rise, it also means that those who cant wait(usually at least a few months) will have to settle for less desirable models. (aka old inventory) More old inventory is cleared during this pandemic than all of the last 3-5 years if my sources are accurate.

For certain high value luxury items, the usual walk in to see if there is a crowd does not apply. It would usually be by appointment basis. Also the more desirable models do not need to advertised or displayed. The waiting list is usually very long and supply wont be able to cater to demand. The challenge is to bring in ample stock of desirable items and that is hard. So it may not be possible to meet the high demand with inadequate stock. 

For ultra high net worth clients, some luxury shops will deliver the whole boutique to the doorstep for them to pick and choose. the wealthy legs are too precious to walk out, especially during this pandemic.

Now you know.

The most reliable forward signal for THG's business and profits may well be from the mall managers, who should know which retailers or outlets have chalked up the highest sales in value or recent sales increase. Most malls including those owned by retail REITs are charging retailers a variable rental based on sales turnover, on top of a fixed monthly rent.

continued uptrend in buying of THG with increase volume, has VBs been moving the markets?

BigToe's insight into the luxury segment has been very educational!
Thank you very much!

for a working class person like me, i am unable to relate to workings of the luxury markets and HNW consumers, :O

Quick Comparison with Watches of Switzerland.

THG trades at PE 6X vs Watches of Switzerland PE 39X. 

Yet THG earns a higher profit (SGD76M vs GBP38M), has fatter op margin (12% vs 8%), and a safer bal sheet (net cash vs net debt). 

[attachment=1768]

https://links.sgx.com/FileOpen/THGL_FY20...eID=667107

very resilient luxury sector business and good results for FY2021! cash pile and increased dividends!
plenty of rich people buying watches!! buy-buy-buy!!

Huat har!!

(21-05-2021, 01:21 PM)brattzz Wrote: https://links.sgx.com/FileOpen/THGL_FY20...eID=667107

very resilient luxury sector business and good results for FY2021! cash pile and increased dividends!
plenty of rich people buying watches!! buy-buy-buy!!

Huat har!!

The results headlines were PATMI grew 8% while revenue dropped 1%.

 In THG's usual understated manner, not emphasised were that operating profit and associates results increased by 23% and 45% respectively.

Masking the double-digit growth in underlying business performance (operating profit and associate results) was a fair value loss on investment properties.

While THG should have received and benefited from some temporary COVID-related grants/subsidies, I suspect that stripping away such benefits, underlying profit could still have grown by double digits.