The Hour Glass

[ValueBeliever]

The only winners are lawyer/law firm and the government court. What ever that is to be settled legally will be very expensive in Singapore. I guess Ms Chan had bear with it for far too long and this is the only option. Not sure how rich is the Tay family and if Ms Chan decided to sell the stake, what price will the buyer be willing to pay. Its also about shldrs interest that the business of Hour Glass image could be damaged as a result of internal squabble.

Sincere boss might be interested?

[crabcrab]

Swiss watchmaking in February 2014
Rebound in growth confirmed

Swiss exports in February confirmed the rebound in growth recorded in January. Their value rose 7.0% compared to February 2013, reaching a level of 1.7 billion francs. After a year of consolidation at a very high level, the sector is again showing signs of a marked increase in the value of exports, in line with forecasts.

The main materials by value recorded an increase close to the average. Those representing a smaller share rose very steeply. The picture in volume terms was more mixed, however the total was up significantly compared to February 2013. The category of other materials registered very strong growth.

In terms of watch exports by price segment, the only downturn recorded in February concerned the value of timepieces costing less than 200 francs (export price). This was offset however by other price ranges. Above 200 francs, the increase was on average 8.4% by value and 11.3% by volume. Several markets recorded sharp upturns. Hong Kong for example exceeded its February 2013 level by 18.7% while Japan even registered +44.6%. In second place, the United States continued its recovery, albeit at a more moderate rate.
Watch exports to China were flat, but remain well below their 2012 level. Germany, the leading European market, recorded a downturn for the third consecutive month. After very strong growth in January,the United Arab Emirates continued to gain ground.

Source: FHS

[lazyplane]

Whoa ! Back in play today !

[ValueMaster]

up 8% today, is it due to the coming results or what?

[dydx]

The FY14 (ended 31Mar14) full-year result should be out in the next few days (Note: last FY13's full-year result was released on 28May13), together with a good final dividend (last FY13: $0.055/share).

The business should continue to evolve and grow - just go and pay a visit to the just beautifully renovated shop located on level 1 of Takashimaya S.C., you will know what I mean.

[psolhawk]

Results are out.
http://infopub.sgx.com/FileOpen/Media%20...eID=299117
http://infopub.sgx.com/FileOpen/THGL_4Q_...eID=299116

Full year profit increase yoy by 4%
Cash increase from 79 million to 116 million
Debt decrease by around 1.5million
EPS increase by around 4% to 23.38cents
NAV stands at $1.56
Dividend increase 9% to 6 cents
Net cash from operations at 64 million, up from 13 million in 2013

Luxury Enteprise Division set up to spearhead non-watch related luxury items. Laduree has done well apparently, enough confidence for them to bring it out of Singapore to Southeast Asia countries.

What I find impressive was, that they controlled the expenses with regards to salaries especially (8% increment yoy) and I think that helped a lot to combat the 18% increase in rentals.

This ship is sailing well. At $1.83, P/E is 7.8X. P/S 2.9X. P/B 1.17X. Still inexpensive IMO.

[dydx]

Without doubt, THG Group is very well-positoned and managed as the leading regional retail chain for luxury watches. THG is a battleship! THG Group is probably also the most profitable retail enterprise in Singapore.

[Boon]

Hour Glass pursuing expansion in Thailand

Dennis Chan
The Straits TimesSaturday, May 31, 2014

The Hour Glass is unfazed by the political turmoil in Thailand and confident of its long-term prospects in the country.

It continues to expand its reach in the Land of Smiles, with the opening of a new Rolex boutique and one Hublot boutique in Central Embassy in Bangkok.

And there are plans to open another two boutiques this financial year, said the luxury watch retailer yesterday while unveiling its full-year earnings, which rose 4 per cent to $54.9 million. Revenue for the year ended March 31 rose by 13 per cent to $682.8 million.

In a statement, Hour Glass made claims to a record year, in which broad-based improvement in its retail network and incisive management brought about a robust performance. The mainboard-listed company said it outperformed several closely monitored industry benchmarks: expansion of revenue, maintenance of profitability, efficient cost management, improvement on inventory turnover days and increasing overall cash balance.

Two new mono-brand watch boutiques were opened in Marina Bay Sands during the year. Gross margins came in at 23 per cent, a small dip compared with 23.9 per cent the year before. Earnings per share swelled to 23.38 cents from 22.49 cents previously. Net asset value per share rose by 15 cents to $1.56. Group inventory level remained stable at $263.3 million while cash and cash equivalents amounted to $116.4 million.

Hour Glass executive director Michael Tay said the results were achieved despite difficult market conditions during the year. The group has commenced plans to lay the foundations for a new growth engine, through its newly formed luxury enterprise division, and to further entrench its position in its regional markets.

The company proposed a first and final dividend of six cents a share, up from 5.5 cents last year. It sees another profitable year ahead.

See more at: http://business.asiaone.com/news/hour-gl...GmvwJ.dpuf

____________________________________________________________________________________________________________
FY20140331 Results

Revenue : SGD million
FY2010 = 483.662
FY2011 = 517.617:
FY2012 = 607.009
FY2013 = 601.932
FY2014 = 682.797

NPAT : SGD million
FY2010 = 33.478
FY2011 = 43.181
FY2012 = 56.209
FY2013 = 54.331
FY2014 = 56.366

Gross Margin
FY2010 = 20.1%
FY2011 = 22.4%
FY2012 = 24.1%
FY2013 = 23.9%
FY2014 = 23.0%

Net Margin
FY2010 = 6.9%
FY2011 = 8.3%
FY2012 = 9.4%
FY2013 = 9.0%
FY2014 = 8.3%

Stock Turn Ratio
FY2010 = 2.4
FY2011 = 2.1
FY2012 = 2.0
FY2013 = 1.7
FY2014 = 2.0

EPS (SGD Cents)
FY2010 = 14.08
FY2011 = 18.10
FY2012 = 23.33
FY2013 = 22.49
FY2014 = 23.38

Cash & Cash Equivalent (SGD million)
FY2010 = 50.452 (borrowing= 14.136)
FY2011 = 50.708 (borrowing= 14.292)
FY2012 = 53.701 (borrowing = 3.069)
FY2013 = 79.536 (borrowing = 41.198)
FY2014 =116.379(borrowing = 39.738)

DPS (SGD cents)
FY2010 = 3.50
FY2011 = 5.00
FY2012 = 6.00
FY2013 = 5.50
FY2014 = 6.00

Comments:
1) I must admit I am impressed by the record revenue achieved amid challenging market condition - wondering how much of it was due to non-watch related new business – probably not making significant impact to top and bottom line at this stage - without segmental breakdown between watch and non-watch related business, it would be impossible to make meaningful comparisons/analysis on different business segments.
2) Despite of growth in topline (revenue), Gross and Net Margin seemed to be on a gradual decline from their peaks in FY2012 - bottom line (NPAT) had grown slightly compared to FY2013 but it stayed almost flat if compared to FY2012 – hopefully, this was a temporary phenomenon which would improve with better market conditions – otherwise it would be a worrying trend- which way would it go - only time will tell.
3) Management seems committed to grow both its core business (luxury watch) and non-watch related new businesses, but little had been disclosed on how well the non-watch related new business have been doing so far. How successful would these new business venture turn out to be - again, only time will tell.

(not vested)

[LLI]

The question is how much of it is coming from the Chinese tourist?

[pacyfiq]

Today i visit the new Hublot and Rolex shop by Hour Glass at Central Embassy in Bangkok. As always, best location and beautiful shop and service.