Headwinds Continue for The Hour Glass 1H 2017

The Hour Glass Logo

From the 1H FY2017 financial results below, we can see how much the current economic downturn has hurt the luxury business. On a positive note, the Group’s balance sheet remains robust with consolidated net assets of $444.2 million with cash and cash equivalents of $85.3 million.

Unaudited 1H FY2017 Results

For the Period ended:

3 Sep ’16


30 Sep ’15


Change %
Profit Before Taxation21,73425,049(13%)
Profit After Taxation16,88520,722(19%)
Earnings per Share (cents)2.342.85(18%)

The Hour Glass has businesses in Singapore, Hong Kong, Japan, Australia, Thailand and Malaysia.

Thailand Business

With the recent passing of Thailand’s King, Thailand enters a prolonged period of mourning, curtailing and luxury consumption. This will have an impact on the Group’s Thai associates. There are currently 9 boutiques in Thailand.

Current Dividend Yield

At current closing price of S$0.625, this translates to a dividend yield of 3.2%. The Hour Glass is still not a fantastic dividend stock.

If you really love The Hour Glass

The total number of shares issued in the market is 705,011,880. Based on the consolidated net assets of $444.2 million, the net asset value is S$0.63 per share. At current closing price of S$0.625, The Hour Glass is trading at fair value.

Currently, The Hour Glass makes up 4% of my stock portfolio. Estimated 2.5% dividend yield. Vested for dividend + growth.

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