JHC is such an interesting retail operation. If you’ve visited any of their stores, they seem to be a cross between TJ Maxx and Dollar General. There is a treasure hunt part of the shopping experience that is understated, and they do sell more higher-ticket items (I.e. rice cookers, etc.) than a Dollar General. I think that’s part of their secret sauce?
I wish their growth outlook was more exciting though.
From the cash flow statement, they seem to be doing a small buyback, like 10 million KHD (<1% share outstanding); not sure what you mean by a 10% stock buyback in 2022. Did they announce any major buybacks? It is a dividend stock with very low growth potential if they stick with Hong Kong territory. I feel founders buy shares for the income (dividend); Hong Kong 5 year bond is about a 3.5% yield, and this company give a yield of 8% (assuming it is stable), which is very attractive, even if it drops to 6% (stock price appreciated by 33%) still not bad. Another one, like CK Hutchison, pays about 6% yield. Thanks for sharing, worth to look further to park the HKD money.
International Housewares Retail (1373 HK)
JHC is such an interesting retail operation. If you’ve visited any of their stores, they seem to be a cross between TJ Maxx and Dollar General. There is a treasure hunt part of the shopping experience that is understated, and they do sell more higher-ticket items (I.e. rice cookers, etc.) than a Dollar General. I think that’s part of their secret sauce?
I wish their growth outlook was more exciting though.
From the cash flow statement, they seem to be doing a small buyback, like 10 million KHD (<1% share outstanding); not sure what you mean by a 10% stock buyback in 2022. Did they announce any major buybacks? It is a dividend stock with very low growth potential if they stick with Hong Kong territory. I feel founders buy shares for the income (dividend); Hong Kong 5 year bond is about a 3.5% yield, and this company give a yield of 8% (assuming it is stable), which is very attractive, even if it drops to 6% (stock price appreciated by 33%) still not bad. Another one, like CK Hutchison, pays about 6% yield. Thanks for sharing, worth to look further to park the HKD money.
Hi Sir,
International Housewares Retail dropped to HKD2.33.
Hope its just 'knee-jerk' reaction to 'not rosy' China Finance figures.
Best Regards
David