The Hour Glass

[pacyfiq]

My opinion is that only the Segment under 2,000 Sgd price can be affected by the Smart Watches. I wear everyday my Apple Watch and i love it (very addictive) but i still dream to own a Daytona or a Nautilus, this will not change.

[pacyfiq]

Last results from 14 February are very good in my opinion, profit up 29% compare to last year! 163 Millions cash and equivalents. net asset value 0.76 Sgd per share!!!

[WolfT]

My opinion is that only the Segment under 2,000 Sgd price can be affected by the Smart Watches. I wear everyday my Apple Watch and i love it (very addictive) but i still dream to own a Daytona or a Nautilus, this will not change.

well, good luck finding a Daytona or a PP Nautilus or AP 15400 in THG. The waiting list is too long and so difficult to find. 
Nowadays I don’t even bother to walk in to see and talk cock with the salesperson. I rather buy from grey dealers.

[lazyplane]

heya lazyplane, will you feel that the management has "learn" from the GFC and is more prepared this time?
Or still they are reactive?

I would think it's has not bottomed yet, so recommend to stay out for a while...

cheap can get cheaper...

I think management has tried hard to avoid GFC inventory write down but realistically, this is essential part of the core business and without inventory, they got nothing to sell.
There are also long standing relationships with the watch makers that they have to take into consideration
Agree cheap will be cheaper. It is sad as i know there are times where as good management  can try to do everything to stop but you cant fight the market. 

Just ask any ship maker  or commodity exploration company that is worth their salt about the last 2 years...

[cyclone]

Financial Results for the Financial Year Ended 31 March 2019 ("FY2019")

Highlights :
1. Year-on-year revenue rose to $720.9 million, buoyed by positive consumer sentiment and steady growth across its regional retail network
2. Profit after taxation of $71.4 million
3. Group’s FY2019 gross margins improved to 27.0%. (FY2018: 24.2%)
4. Earnings per share were 9.99 cents vs 7.07 cents previous year, up 41%
5. Cash and cash equivalent at $181.0 million
6. Bank loans stood at $15.0 million, after making net repayments of $33.6 million
7. Consolidated net assets were $560.2 million or $0.79 per share
8. The Board of Directors recommends a first and final dividend of 3.00 Singapore cents per share for FY2019 (FY2018: 2.00 cents per share)
9. Barring any unforeseen circumstances, the Group expects to be profitable for the next financial year.

The Hour Glass today closed flat at S$0.75.

More details in :
1. https://links.sgx.com/FileOpen/THGL_4Q_F...eID=561209
2. https://links.sgx.com/FileOpen/THGL_4Q_F...eID=561210

[brattzz]

waos, finally up dividends to 3cts, substainable! that explains why Boss Tay keep buying in last few months!! Huat Har!!! 💪💪💪

[ksir]

They got about $0.23 net cash per share.
Definitely can pay more if they'd like to share. But at least increase by 50%! haha not bad.


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[brattzz]

They got about $0.23 net cash per share.
Definitely can pay more if they'd like to share. But at least increase by 50%! haha not bad.


Sent from my iPhone using Tapatalk

The increase of dividends payout is inline with the increase of earnings per share, it's a good reflection of how Boss Tay is thinking with respect to biz profits and dividends,
think it's going to be a zero-debt company very soon...

hang on for the upside! huat har!

[Choon]

They got about $0.23 net cash per share.
Definitely can pay more if they'd like to share. But at least increase by 50%! haha not bad.


Sent from my iPhone using Tapatalk

The increase of dividends payout is inline with the increase of earnings per share, it's a good reflection of how Boss Tay is thinking with respect to biz profits and dividends,
think it's going to be a zero-debt company very soon...

hang on for the upside! huat har!

And yet the share price barely moves...despite the good results and increase in dividend payout while its valuation is so depressed.

What the increase in dividend payout reflects is a family / management that is guarding its cash pile too zealously , at the expense of minority shareholders' interest. And that why the share price barely moves. (IMO)

Dividend of 3cts vs Earnings of 10cts is only 30% payout ratio while the company is sitting on 23cts of cash. 

Would there be a negative impact to the company if there is a special dividend of another 2cts? The cash pile drops to 21cts. So?

In short (IMO), 
(1) the company is managed well and has good business economics;
(2) its share price is cheap relative to (1);
(3) but the inability of minority shareholders (over many years) to enjoy the earnings of the company poses the weakest link to the investment thesis. 

Given that THG is a family business, (3) is particularly critical. If (3) does not change, I do no think minority shareholders will HUAT even if THG reports another 50% earnings growth next year. (IMO)

[dydx]

And yet the share price barely moves...despite the good results and increase in dividend payout while its valuation is so depressed.

Not true. Based on the last done price of $0.755, this counter has advanced 19.8% from its 12-month low at $0.63 last recorded on 13Feb19. Relative to the STI, THG has out-performed the SG market by 24% in the last 12 months from 1Jun18..

https://sg.finance.yahoo.com/quote/AGS.S...1dfQ%3D%3D

But I agree with you that THG remains underpriced, as I feel for a high-quality business like THG, Mr Market should be willing to attach say at least 2 years' forward earnings or EPS in market valuation..