The Hour Glass

[dydx]

Apart from crunching the numbers to ascertain the profitability and financial health of THG and also making a comparison with say Cortina, I think another way to ascertain the quality aspects of THG's business is to simply stand in front of their shop (located on Level 1) at Takashimaya S.C. and admire or observe it for half an hour, and in the course of it one can count the number of people walking in and out of the store, and perhaps also the number of purchases/sales made.

My own conclusion after making such a survey and observation a few years ago: If I can, I would want to own that whole store!

Meanwhile, we can all review and explore the recently revamped corporate website of THG.....
http://www.thehourglass.com/?cat=12&lang=

[Pursuitofknowledge]

One has 44% increase in net profit the other recorded 100% in net profit for FY 2011. You say which is better leh?

In a roaring market, Cortina will stand to gain from higher growth rate in profit as compared to THG. This is because of the fact that it has a lower profit margin.

Anyway, given that Cortina has a longer inventory turnover day, expect the 1Q result to be slightly worse than THG as a result of the strengthening of CHF/SGD during 2nd half of 2011.

In times of recession, Cortina is not going to weather it as well as THG due to its lower profit margin once again.

I thought this was suppose to be a recession proof business? Wealthy people will still buy watches for collection and investments during a recession?

Im more worried about THG selling watches on CREDIT with all these interest free packages being doled out by them recently. What happens in the event the buyer who buys on credit runs away or defaults?

Maybe that explains the higher inventory turnover by THG?

Trade receivables account for 2.8% of its revenue while Cortina trade receivables accounts for 3% of its revenue. Therefore the amount of credit given by THG doesn't seem much of a concern for me. Not to mention THG hold 50+m cash after debts while Cortina have 69m of debts against 10m+ of cash. I wonder which company will hold firm during recession.

[ValueBeliever]

chow Tai Fook reported earnings and its growth is expected to be 60% for next few years. Our own back yard time pcs retailers are way undervalued in all aspect except topline growth.

PE of CTF is 15, ours is only 5 (both cortina and Hr Glass)
Yield on dividend CTF 0.69%, whereas Hr Glass 4.7%, Cortina is 5.8% (assuming u buy at today price of buyer at 60cts)

Not sure about NTA. CTF came with IPO price of 15HK Dollar and still trading under water?

No wonder, our gov sleeping! Tay Liam Wee has sold Sincere watch twice for hefty profit. SGX is really a hopeless market!! Haaahhaa Asia cheapest market is SPore!

[D123]

chow Tai Fook reported earnings and its growth is expected to be 60% for next few years. Our own back yard time pcs retailers are way undervalued in all aspect except topline growth.

PE of CTF is 15, ours is only 5 (both cortina and Hr Glass)
Yield on dividend CTF 0.69%, whereas Hr Glass 4.7%, Cortina is 5.8% (assuming u buy at today price of buyer at 60cts)

Not sure about NTA. CTF came with IPO price of 15HK Dollar and still trading under water?

No wonder, our gov sleeping! Tay Liam Wee has sold Sincere watch twice for hefty profit. SGX is really a hopeless market!! Haaahhaa Asia cheapest market is SPore!

Chow Tai Fook is NOT a useful comparison to THG and Cortina. THG and Cortina are re-sellers. Chow Tai Fook mostly manufactures its own goods. Their balance sheets will show you that.

THG and Cortina deal in time pieces. The time piece business only represents 7% of Chow Tai Fook's total sales. They are mainly in the business of selling gem-set jewellery and gold products.

Please read the prospectus and get your facts right.

[Boon]

Chow Tai Fook's principal products are mass luxury and high-end luxury jewellery products including gem-set jewellery, platinum/karat gold products, gold products and watches. Revenue from watches product is only 6.4% of total revenue in FY2012. You are comparing apples to oranges !!!

[KopiKat]

I missed that one......

Just saw 41 lots on Sell at $1.27. Anyone interested to take it?

On 18-Jun, someone was selling in blocks of 100 lots throughout the whole day at $1.25. I did pick up some then, after having divested my tiny holdings previously.

In case you are still interested, someone's selling again...

---

After 5pm data for ref (Total Vol = 343,000),

16:49:49 1.250 20,000 Buy Up
16:39:30 1.250 10,000 Buy Up
16:39:12 1.250 7,000 Buy Up
16:26:37 1.250 3,000 Sell Down
16:15:17 1.250 17,000 Sell Down
16:15:17 1.250 3,000 Sell Down
16:09:45 1.250 7,000 Sell Down
16:09:45 1.250 3,000 Sell Down
15:58:42 1.250 7,000 Sell Down
15:58:42 1.250 10,000 Sell Down
15:58:42 1.250 3,000 Sell Down
15:51:24 1.250 7,000 Sell Down
15:51:24 1.250 10,000 Sell Down
15:51:24 1.250 3,000 Sell Down
15:51:24 1.250 10,000 Sell Down
15:31:13 1.260 133,000 Sell Down
15:30:25 1.260 26,000 Buy Up
15:29:43 1.255 7,000 Buy Up
15:29:43 1.255 10,000 Sell Down
15:01:07 1.255 7,000 Buy Up
14:58:41 1.255 5,000 Buy Up
14:58:41 1.255 8,000 Buy Up
14:31:41 1.260 4,000 Sell Down
13:18:02 1.265 2,000 Buy Up
12:07:36 1.260 11,000 Sell Down
10:05:20 1.255 10,000 Sell Down

[freedom]

the ar2012 is out.

it seems that the company is building inventories in anticipation of higher price in the future. the chairman also explained the principal-agent problem between The Hour Glass and its brand owners.

in its receivable, I noticed that they received compensation from dropping dealership with one brandin certain territories. So the principal has been taking some distribution right back from the Hour Glass.

[Salty]

Hello all!

I noticed the dividends for hour glass over the last few years "exploded" upwards.
This most likely is due to the increased earnings due to exploded asian consumption on luxury watches.

I am wondering did the company changes fundamentally or the earnings exploded just due to a change in consumption?

very interested in this company

[shanrui_91]

Hello all!

I noticed the dividends for hour glass over the last few years "exploded" upwards.
This most likely is due to the increased earnings due to exploded asian consumption on luxury watches.

I am wondering did the company changes fundamentally or the earnings exploded just due to a change in consumption?

very interested in this company

nothing much has changed for the company but they have been riding on a strong sale trend for watches lead by the rise of the Chinese consumer. Luxury tax causes price to be very expensive and Hong Kong rather than Singapore has been the greatest beneficiary.

As quoted

"Having expressed in the past that our exposure to this nationality group was only 10% of Group revenue, I am pleased that management had extended that to 16% for the financial year just ended."

in its receivable, I noticed that they received compensation from dropping dealership with one brandin certain territories. So the principal has been taking some distribution right back from the Hour Glass.

This was an agreement dating back to annual report FY 2004:

"The Company has exclusive distribution agreements in respect of a principal in the Asia Pacific region.

During the year, the exclusive distributorship rights were revised to exclude certain territories countries in the Asia Pacific region. As a goodwill compensation for removing these countries from the originally defined territories, the principal agreed to pay the Company, an amount of CHF2 million ($2.7 million). The Company received CHF 250,000 ($337,000) during the year, with the balance amount of CHF1.75 million ($2,363,000) being recorded as a net receivable as at 31 March 2004 "

Nevertheless, it is a very well-written Chairman's Statement or rather one of the best I have seen so far.

(vested)

[orang]

the ar2012 is out.

it seems that the company is building inventories in anticipation of higher price in the future. the chairman also explained the principal-agent problem between The Hour Glass and its brand owners.

in its receivable, I noticed that they received compensation from dropping dealership with one brandin certain territories. So the principal has been taking some distribution right back from the Hour Glass.

"in anticipation of higher price in the future" sure sounds nice

Somehow inventory seen as a ratio to current assets - 0.76 for the latest fy and 0.74 and 0.68 going back to fy11 and fy10 - makes one feel uneasy. I know I am

The ratios to equity reading - 0.79 - 0.76 - 0.73 just adds on to the concern

The compensation received for dropping dealership being treated so casually in the receivables just seems not right, the amount piffling notwithstanding

(vested interest but thinking of jumping ship)