The Hour Glass

[weijian]

I am not a watch connoisseur but a good read to appreciate where all the fuzz is coming from.

Inside The Manufacture Going Where Few Have Gone Before – Inside All Four Rolex Manufacturing Facilities

After the waterproofness test and self-winding module examination, the completed watches are set into boxes of 10 for a rigorous 24-hour accuracy test. But before the test begins, the watches are photographed – exactly 24 hour later the watches will be photographed again, and the two images laid upon each other. If the images do not align perfectly, the watch will be sent back for further adjustment.

For all those watches that make it through this final stage of testing, final bracelets will be fitted, COSC tags applied, and finally, they will be placed into a completely proprietary Rolex shipping container for distribution to their destination markets.

Yes, well, Rolex has a machine in-house that can filter stones in mass to cull out anything that isn't a real diamond. The machine costs tens of thousands of dollars so I asked how frequently they received a stone from a supplier that wasn't an actual diamond. The answer? About one out of 10 million. They do it anyway, because this is Rolex

https://www.hodinkee.com/articles/inside-rolex

[brattzz]

for buyers, market down-turn bearish has provided a lowered pricing of THG's shares! let's look forward to the FY2021's reporting soon in 2 weeks times!

[brattzz]

FMR continues sell to below 6%... at bite price, $2.33 +/-
cashing out slowly...

[xierwang]

The Hour Glass was down 4% today, however the co reported a record sales, profit and dividends just now, way above analysts expectations!

Looking ahead, The Hour Glass Group believes that demand momentum will remain buoyant and continues its focus on organic development throughout the Asia Pacific region.

[xierwang]

Using the 1H result numbers as a basis...
https://links.sgx.com/FileOpen/THGL_1H_F...eID=690513
, and bearing in mind 2H (ending Mar22) is usually much stronger, what are the chances that full-year net profit would hit $150.0m? At $150.0m, EPS would be approx. $0.22. Full-year result is due in 2 weeks.

Your estimation is so accurate, full-year net profit is $150.0m and EPS is $0.2234, amazing!

[dydx]

Using the 1H result numbers as a basis...
https://links.sgx.com/FileOpen/THGL_1H_F...eID=690513
, and bearing in mind 2H (ending Mar22) is usually much stronger, what are the chances that full-year net profit would hit $150.0m? At $150.0m, EPS would be approx. $0.22. Full-year result is due in 2 weeks.

Your estimation is so accurate, full-year net profit is $150.0m and EPS is $0.2234, amazing!

Thanks for your compliment. The actual full-year net profit of $154.7m exceeded my guesstimate of $150.0m, and this number is after having taken a total $6.6m in accounting non-cash impairment losses in PPE and goodwill related to the recent market entry into New Zealand by way of an acquisition. If we add this amount back, FY22's adjusted net profit would be $161.3m, giving an even higher EPS of $0.233. The results are truly quite amazing!

https://links.sgx.com/FileOpen/THGL_FY20...eID=718692

[brattzz]

it's really quite an amazing business.... luxury segment really does not have recession??!! :O
the rolex supply is short, but the demand becomes higher than ever?? it's buy and flip rolexes for profits? something i cannot understand...

[dreamybear]

it's really quite an amazing business.... luxury segment really does not have recession??!! :O
the rolex supply is short, but the demand becomes higher than ever?? it's buy and flip rolexes for profits? something i cannot understand...

Well, Cortina also reported high revenue / profit growth so it does seem the demand for timepieces is strong.

I must admit I "misread" the investment merits - despite the growing trend of smartwatches, it does seem lux timepieces remain as evergreen products. 

Oh well, guess I just have to learn and move on.....

--------------------------

FY Financial Statements
https://links.sgx.com/FileOpen/CHLFY2022...eID=718974
"...On the other hand, the purchasing power of the regional consumers is rising continually. Customer demand for luxury timepieces remain positive..."

[dydx]

https://links.sgx.com/1.0.0/corporate-an...a44cd3d624

Yesterday was the first trading day after the release of a set of superb FY22 full-year results on 26May22 evening, and the company immediately restarted to buy back shares and bought back 2.49m shares and paid an average $2.36311/share. Minority shareholders should do more in-depth analysis on this.

[dydx]

Before the latest results, the company also did a similarly big share buy-back on 20Apr22, comprising 2.27m shares at a higher average price of $2.40724/share..
https://links.sgx.com/1.0.0/corporate-an...c8f2409ab9

On the same day (20Apr22), the company also issued the following announcement to inform that TYC Investment Pte Ltd (substantially owned and controlled by the Tay Family), having crossed the 50% mark, has become the immediate and ultimate holding company..
https://links.sgx.com/FileOpen/New%20Hol...eID=712852
The announcement also informed that the Tay Family's collective interest was approximately 69.25% at that point. After yesterday's big share buy-back, the Tay Family's collective interest should be very close to 70% now.

The 20Apr22 announcement also contained a last para of friendly advice/reminder to all minority shareholders and potential investors, which is reproduced in full below.

Shareholders and potential investors of the Company are advised to read this announcement and any
further announcements made by the Company carefully. Shareholders and potential investors of the
Company are advised to refrain from taking any action with respect to their securities in the Company
which may be prejudicial to their interests, and to exercise caution when dealing in the securities of the
Company. Shareholders and potential investors of the Company should consult their stockbrokers, bank
managers, solicitors or other professional advisers if they have any doubt about the actions they should
take.