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.
Yeah, they have an odd mix of goods. But incredibly cheap across the board since they have no middle-men and produce goods cheaply in China. I think that's what explains their consistently high same-store sales growth.
There will probably be a post-COVID slump in sales (face masks, etc) and then store count growth will be slow and steady. Still a low multiple 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.
Yes, they announced a 10% share buyback in 2022 and Bloomberg says it's completed, yet I didn't see it in the accounts. I agree with you that the growth potential remains weak in HK, and they haven't really proven themselves outside of HK even though I think the Philippine business has some potential. The same-store sales is impressive, so I think mid-single digit top-line growth across the cycle is reasonable too.
I think you refer to the meeting proposal on 2022-08-30, I think they have the authority to do share buyback from 2021 to 2022 but they did not do it, hence, it is lapsed and "completed".
The print was a bit weak. Mostly due to a high base due to last year's sales of face masks. So the company is seeing some short-term headwinds due to the end of COVID restrictions. On trailing numbers, the P/E is now 9x.
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.
Yeah, they have an odd mix of goods. But incredibly cheap across the board since they have no middle-men and produce goods cheaply in China. I think that's what explains their consistently high same-store sales growth.
There will probably be a post-COVID slump in sales (face masks, etc) and then store count growth will be slow and steady. Still a low multiple 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.
Yes, they announced a 10% share buyback in 2022 and Bloomberg says it's completed, yet I didn't see it in the accounts. I agree with you that the growth potential remains weak in HK, and they haven't really proven themselves outside of HK even though I think the Philippine business has some potential. The same-store sales is impressive, so I think mid-single digit top-line growth across the cycle is reasonable too.
CK Hutchison is an interesting one too, I wrote about it last year here: https://www.asiancenturystocks.com/p/deep-dive-2022-2-ck-hutchison
I think you refer to the meeting proposal on 2022-08-30, I think they have the authority to do share buyback from 2021 to 2022 but they did not do it, hence, it is lapsed and "completed".
That explains it, thanks!
Hi Sir,
International Housewares Retail dropped to HKD2.33.
Hope its just 'knee-jerk' reaction to 'not rosy' China Finance figures.
Best Regards
David
The print was a bit weak. Mostly due to a high base due to last year's sales of face masks. So the company is seeing some short-term headwinds due to the end of COVID restrictions. On trailing numbers, the P/E is now 9x.