ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

THG owns a stake in GEMS

(03-11-2013, 09:54 PM)dzwm87 Wrote: [ -> ]THG owns a stake in GEMS

Twenty Largest GEMS TV Shareholders
NO. NAME NO. OF SHARES %

1 HSBC (SINGAPORE) NOMINEES PTE LTD 253,104,440 24.45
2 THE HOUR GLASS LIMITED 41,212,000 3.98
3 BANK OF SINGAPORE NOMINEES PTE LTD 40,510,753 3.91
4 BANK OF EAST ASIA NOMINEES PTE LTD 24,955,000 2.41
5 BOON SU YIN MARIE 15,852,000 1.53
6 CHEW KONG HUAT 12,402,000 1.20
7 CITIBANK NOMINEES SINGAPORE PTE LTD 10,529,800 1.02
8 OCBC SECURITIES PRIVATE LTD 10,264,000 0.99
9 PHILLIP SECURITIES PTE LTD 8,627,000 0.83
10 UOB KAY HIAN PTE LTD 8,426,000 0.81
11 WONG LIAN SOO 7,766,000 0.75
12 MAYBANK KIM ENG SECURITIES PTE LTD 7,732,138 0.75
13 TAN YEW LIANG 7,710,000 0.74
14 TAN KENG SOON 7,400,000 0.71
15 YEO LAY CHU JANET 6,000,000 0.58
16 SEE LOP FU JAMES @ SHI LAP FU JAMES 5,000,000 0.48
17 TAY LAI HUAT (ZHENG LAIFA) 4,200,000 0.41
18 NG LAM CHIN 4,100,000 0.40
19 CHUA CHENG ANN 4,000,000 0.39
20 VRASARINNOP TARALATP 3,664,000 0.35

Source: SGX - GEMS TV ANNUAL REPORT 2013

Swiss watchmaking in September 2013
Growth rebound

Benefiting from one additional working day and a favourable base effect, watch exports showed a marked upturn in September. With a value of 1.9 billion francs, they exceeded last year’s level by 8.5%. Not since January has such a high monthly increase been observed.

Steel, platinum and gold watches contributed significantly to the increase in exports in value terms. However the total number of timepieces fell by just over 100,000 units (-4.3%). The category of other metals and steel timepieces clearly influenced this downward trend. Since the beginning of the year, Switzerland has exported one million fewer watches than in the period January-September 2012.

In September, only watches below 200 francs (export price) recorded a decline (-12.7% in volume terms). The highest increase concerned the 200-500 francs category, which continued to rise by more than 20%. Above 500 francs, exports were up 8.8% by value and 7.3% by volume.

Many markets ended the month on a positive note. Among the latter, Hong Kong has shown signs of recovery in recent months, and likewise the United States. China continued to lose ground, albeit to a minor extent, and has seen its situation improve since the start of the year. Germany’s growth rate was on a par with the average, as was Japan’s, where growth stabilised during the third quarter. Despite a slight decline in September, Italy continues to show a high level of growth overall. Conversely, France saw its downward trend take a turn for the worse.

Source: FHS

Swiss watchmaking in October 2013
Continued growth and high value

In line with previous months, watch exports continued to perform well in October. Their value was maintained at a high level thanks to growth of 1.1%. Indeed the figures indicate the best month ever recorded by the sector, with a result of 2.2 billion francs.
Swiss watch exports in October 2013

Steel watches were the main impetus for growth with a rise in value of 4.6%, while gold and bimetallic products lost ground. Platinum timepieces made an important contribution to the general upturn. In volume terms, the increase in steel was offset by a decline in the category of other metals.

The profile of different price segments was to a large extent the same as in previous months. Watches costing less than 200 francs continued to taper off. Between 200 and 500 francs, the increase was less marked in October, but still significant. Above 500 francs, the increase was between 1% and 2% both in value and volume terms.

Watch exports to Hong Kong remained stable in October. The United States continued its recovery thanks to above-average growth. China was again unable to reverse its downward trend, however the level of decline was much less marked than at the beginning of the year. The situation in Europe was slightly negative overall. Italy and France registered a decline of several points, while Spain and Austria took even more shine off the figures. Germany however recorded an upturn. Singapore showed clear signs of recovery, confirmed by the good result achieved in October.

Source: FHS

THG has just launched the "First-Ever 40 Months Interest-Free Instalment Payment Plan At 0% Interest" marketing campaign to last from 1Jan to 28Feb 2014…..
http://www.thehourglass.com/?p=3338

This should boost sales further during this after-yearend bonus and CNY watch-shopping season.

I wonder who bears default risk.

(03-01-2014, 04:05 AM)dydx Wrote: [ -> ]THG has just launched the "First-Ever 40 Months Interest-Free Instalment Payment Plan At 0% Interest" marketing campaign to last from 1Jan to 28Feb 2014…..
http://www.thehourglass.com/?p=3338

This should boost sales further during this after-yearend bonus and CNY watch-shopping season.

(03-01-2014, 07:05 AM)chew Wrote: [ -> ]I wonder who bears default risk.

(03-01-2014, 04:05 AM)dydx Wrote: [ -> ]THG has just launched the "First-Ever 40 Months Interest-Free Instalment Payment Plan At 0% Interest" marketing campaign to last from 1Jan to 28Feb 2014…..
http://www.thehourglass.com/?p=3338

This should boost sales further during this after-yearend bonus and CNY watch-shopping season.

The bank which u use the credit card from.

Seems like a big red flag... they might have problems trying to clear away their inventories
2013 Full year EPS could also come lower as compared to 2012
Shall wait for their coming annual report

3Q (Oct to Dec) and 4 Q (Jan to Mar) - together making up the 2H - are historically and seasonally the better quarters for THG in terms of sales and profits. A good look into the last FY13 (ended 31Mar13) and 3Q-FY13 results announcements will confirm this pattern….
http://infopub.sgx.com/FileOpen/SGX_THGL...eID=239560 [FY13 result announcement]
http://infopub.sgx.com/FileOpen/THGL_3Q_...ileID=2440 [3Q-FY13 result announcement]

I suppose THG is trying to use this "40 Months Interest-Free Instalment Payment Plan At 0% Interest" to boost sales/profits a little more in 4Q, and also help those younger or lower-middle income individuals and households to buy/own their first - or 2nd or 3rd? - branded watches like a Rolex or Hublot, by making their purchases more affordable through an interest-free instalment payment plan under their DBS credit cards. I suppose such a financing scheme makes economic sense for THG, DBS, and those consumers who hold DBS credit cards - and there are many out there! - so long as the SGD financing interest rates - i.e. financing cost borne by THG - remain low, and the individual financing amounts - with the associated credit risks and responsibilities borne by DBS and the borrowers - are kept within prudential limits.