The Hour Glass

[brattzz]

Just curious why THG has not re-commenced share buyback.

It shows that the main purchase of THG's SSB is to buy from open market when FMR is aggressively selling off their holdings from 9.9% to below 4.6%, as long as FMR stops selling, THG has to stop/slow down their SSB, no point wasting bullets...

Not a target to reach >90%, delisting effort by THG,

Without FMR aggressively selling big blocks, THG will not step in to buy as aggressively as before, 

Sure, THG will start SSB again every now and then, when THG sees good value to accumulate these small loosely held shares by non-funds,

THG is unlikely to be as aggressive as before to avoid being labelled as propelling up the share prices...

Shortist will continue to be active and do what they do best, push the price down and allow value to emerge! -> THG can come in and catch them once a while just to squeeze them for fun of it!

[weijian]

Just curious why THG has not re-commenced share buyback.

I do not think there is much value to dwell too much (especially if one already has an emotional dependence on SBB to "support share prices"). But just for fun, here is what I extracted from SGX's announcement website:

Share buy back last date: 25 April 2022
FY22 Announcement: 26 May 2022.
Next share buy back after results: 27 May 2022

Share buy back last date: 11 Oct 2021
1H22 Announcement: 12 Nov 2021.
Next share buy back after results: 10 Dec 2021

Holiday season is arriving. I would hope the Mgt spends more time selling watches than anything else...

[brattzz]

WJ,

There's no more watches to sell to non-VIPs! (PP,AD,Rolex!) all delayed up to 2 years! :O :O :O

huat har!

[CY09]

Yes Bratzz is right among the wealthy, recession has not hit.

Luxury goods are still being snapped up such that they are totally in short supply with a long wait list. It makes an investment thought, should we consider investing in luxury brand companies such as The Hrglass (or even Apple) where they seem to be rather recession proof due to their clientile.

But then again, this is why their valuations are rich.

[wj1984]

WJ,

There's no more watches to sell to non-VIPs! (PP,AD,Rolex!) all delayed up to 2 years! :O :O :O

huat har!

I beg to differ but there are always watches (desired i.e. above retail price) to sell. It is whether you qualify for it. What I understand is it's maybe easier to purchase some less desirable watches now. So the good times may end soon.

If i may add there are a lot of upper-middle class people who are supporting the watch market. These people may be affected by recession.

[Choon]

Reading Watches of Switzerland results announcement transcript today.

There was a comment from mgmt that luxury watch retail is undeveloped in the United States due to underinvestment in retail. Likewise in the Nordics. This may well be management's ra-ra comments.

But hopefully the above is true for Australia / New Zealand, given that THG had bought quite a number of retail properties there.

[dydx]

Reading Watches of Switzerland results announcement transcript today.

There was a comment from mgmt that luxury watch retail is undeveloped in the United States due to underinvestment in retail. Likewise in the Nordics. This may well be management's ra-ra comments.

But hopefully the above is true for Australia / New Zealand, given that THG had bought quite a number of retail properties there.

For those - especially men - who can afford, buying a Rolex for himself/herself or loved ones, family members on special occasions (birthday, child's wedding or graduation, etc.), or even buying a pair of Rolexes with the spouse (for wedding, anniversaries, after year-end bonus, etc.), are very common nowadays. Such a consumer behaviour cuts across different cultures, and has emerged as a secular trend. I am quite sure this is the case in Australia and New Zealand as well. We can quite easily ascertain this by reviewing the Google Reviews of THG's Down Under stores.

[brattzz]

https://investors.sgx.com/company-disclo...ABJ1EDR9QP

New NE director - Principal, Hillhouse Investment Management Ltd

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Whether we are investors in the early innings or later in the game, Hillhouse focuses its efforts on growth. Our mission is to build strong, sustainable businesses that will thrive for many decades to come.

[brattzz]

https://www.businesstimes.com.sg/compani...ned-market

ROLEX will begin issuing certificates of authenticity to authorised dealers selling its pre-owned watches in a move that will give the Swiss company more oversight of its products and shake up the US$20 billion market for secondhand luxury timepieces.

Swiss dealer Bucherer will be the first to begin selling pre-owned Rolex watches that are certified as authentic by the company at stores across Europe, Rolex said on its website.

Other authorised Rolex dealers can begin participating in the programme in the spring of 2023. Rolex said it will only certify watches that are at least three years old in a move to dissuade so-called flippers of its watches who sell new watches at prices above retail.

https://www.forbes.com/sites/carolbesler...2e51c05bec

Rolex has introduced a certified pre-owned program for its watches, a major move that will help regulate the market when it comes to buying and selling Rolexes on the secondary market. The program will initially only be available at select Bucherer boutiques in Europe, but will roll out to other retailers in 2023. Rolex is offering the opportunity to purchase pre-owned watches that are certified as authentic and guaranteed by the brand from its existing network of official retailers. They will be guaranteed according to the exacting quality criteria inherent to all Rolex products and will carry a two-year international guarantee, valid from their date of resale in the Rolex network. The program will authenticate second-hand Rolex watches that are least three years old.

According to Rolex, the aim of starting its own certified pre-owned program is to bring added value to the existing supply of pre-owned Rolex watches. “Because when these watches change hands, their authenticity must be attestable at the time of resale by the Official Retailers,” said Rolex in a statement released today. “Rolex advocates the durability of its products. Thanks to uncompromising quality standards, the brand produces watches with the longest possible lifespans. It therefore wishes to accompany the second life of its watches already circulating on the market, with a view to preserving, maintaining and guaranteeing what already exists. This approach is in keeping with the Perpetual philosophy: the relentless pursuit of excellence and a long-term commitment to future generations.”

It is rolling out initially at Bucherer boutiques in six countries: Switzerland, Austria, Germany, France, Denmark and the UK, beginning this month. Other official Rolex authorized dealers who choose to be part of the program will be able to do so starting in spring, 2023.

Not only may this be the only way to obtain a Rolex in the future, it is also an opportunity to build a relationship with Rolex and its authorized dealers, thereby improving chances of purchasing a new model. Official dealers participating in the pre-owned network will display a special Rolex Certified Pre-Owned plaque, and each will bear a Rolex Certified Pre-Owned seal attesting to their status as certified second-hand Rolex watches. A Rolex Certified Pre-Owned guarantee card will be delivered at the time of the sale, officially confirming that the watch is genuine and guarantees its proper functioning. This card bears the words “Certified Pre-Owned” and serves as an official certificate of authenticity. “Rolex watches – new or second-hand – should only be bought from Official Rolex Retailers, who are authorized to sell and care for Rolex watches,” says the statement. “Thanks to their skills and technical expertise, the retailers ensure the continued smooth functioning of each timepiece over the years. Only the official Rolex network is able to provide these guarantees.”

So Rolex will take the lead and go into the pre-owned market biz, THG will have to start a new biz division - "Pre-Own" with certificates from Rolex! - for their current servings to asian/asean/chinese markets! - buy with peace of mind!

Just like automotive industries! Pre-owned cars by major brands!

[weijian]

Just for interest sake...Bucherer has issued its prices and I took a look:

GMT-Master II
Bucherer CPO = 21,000 CHF (18,300pounds)
Grey Market price from Subdial Index = 15,745pounds
Difference = CPO is 16% more expensive

Date Just 41
Bucherer CPO = 12,500 CHF (10,900pounds)
Grey Market price from Subdial Index = 9,566pounds
Difference = CPO is 14% more expensive

Rolex CPO is higher than the grey market (obviously) but not a lot much to pay for those who wants a luxury timepiece with a piece of mind and as soon as possible.

The execution will be in the details. Where will be the inventory coming from? What are the margins? How much more support is needed for the AD staff to do this for the margins? Will this be value add to its customers?

Nonetheless, the Boss (Rolex) has just given the go-ahead for the ADs to start another business line. If the Tays decide to do it and executed it correctly, it will be another growth engine.

Bucherer CPO: https://www.bucherer.com/rolex-certified-pre-owned
Subdial Index: https://beta.subdial.co/market