a leading watch & jewellery retailer · 2018-08-29 · 4 nov 2018 jewellery shop - temple mall...
TRANSCRIPT
Other Information
Company Structure
Comprehensive watch brand mix Wide recognition of brandStrong presence on prime retail locationsDiversify synergies effect with group sister companiesExcellent direct marketingProficient management team
China Galaxy Tony Li 852-3698 6392 [email protected] Lewis Pang 852-2235 7847 [email protected] Mariana Kou 852-2600 8190 [email protected] International Walter Woo 852-3761 8776 [email protected] Bank Anne Ling 852-2203 6177 [email protected] International Walden Shing 852-3926 8952 [email protected] Linda Huang 852-3922 4068 [email protected] Peter Chu 852-3969 9521 [email protected]
IR Contacts:Anna Luk, Group IR DirectorT: (852) 2835 6783 E: [email protected]
Winnie Kwong, Group IR ManagerT: (852) 2835 6791E: [email protected]
Analyst Contacts
Emperor Watch & Jewellery Limited (887.HK)
Emperor Group (~54%)
Watch Business (~80%)
Authorised dealer of international watch brands
Design and sale of diamond,jade, pearl, gold and other
jewellery under brand
Public (~46%)
Jewellery Business (~20%)
A Leading Watch & Jewellery Retailer
Competitive Strengths
1www.emperorwatchjewellery.com Issued on 29 Aug 2018
Shareholding:
Revenue Mix:
Mr. Martin Lee,Executive Director of
Henderson Land Development Co. Ltd (Left)
Mr. Brian Li, Deputy Chief Executive of
the Bank of East Asia Limited (Left 1)
Baume & MercierBedat & CoBell & RossBlancpainBreguetCartierCertinaChopardGirard-PerregauxHamiltonIWC SchaffhausenJaeger-LeCoultreMontblanc
MidoOmegaOfficine Panerai ParmigianiPatek PhilippePiagetRadoRolexTag HeuerTissotTudorVacheron ConstantinZenith
Baume & Mercier (名士)Carl F. Bucherer (寶齊萊)Franck Muller (法穆蘭)Omega (歐米茄)Piaget (伯爵) Rolex (勞力士) Tag Heuer (泰格豪雅)Tudor (帝舵表)Zenith (真力時)
Hong Kong: 26 Dealerships Mainland China: 9 Dealerships
Watch Business
Mr. Thierry Stern, President of Patek Philippe (Right 2)Mr. & Mrs. Philippe Stern, Honorary President of
Patek Philippe (Left 3 & 4)
Co-op advertising campaigns with watch brand suppliers
The above price differences is mainly attributable by VAT, luxury tax, import tariff, currency exchange rate and regional price difference dictated by watch brand suppliers
Rolex "Day-Date”Yellow Gold HK$222,000RMB235,500SGD42,180
Cartier “Ballon Bleu” Medium Rose Gold
HK$343,000RMB342,000SGD63,000
Patek Philippe “Grand Complications”
Rose GoldHK$653,600RMB657,600SGD115,000
Market Local Listed Price Against Hong Kong
Hong Kong -Macau -Mainland China plus ~20%Singapore plus ~5%Malaysia -Japan -Korea plus ~5%Thailand plus ~5%Europe minus ~5%
Comprehensive Brand Mix
Close Relationship with Watch Brand Suppliers
Regional Watch Price Differences
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Singapore: 4 Dealerships
CartierPatek PhilippeRolexTudor
Mr. Daniel Neidhart, Managing Director of Rolex (Hong Kong) Limited (Left 1)
www.emperorwatchjewellery.com Issued on 29 Aug 2018
Stephan Ritzmann, CEO of Chopard Asia-Pacific Region (Left 2)
Martin Ganz, Vice President of Breguet Hong Kong and Macau (Right 1)
With focus on quality diamond and fine jadeites among the comprehensive product range, including pearl, colour stones and gold as well, under brand
Emphasis on skillful craftsmanship, delicate and stylish design
Jewellery Business
Roll out various signature jewellery collections with unique charisma for brand loyaltyRecast precious materials in an elegance and excellence with exceptional creationsDemonstrate feminine appeal with a fine and delicate quality
Celebrities endorsement on advertisements and advertorialsOnline exposure in popular websites and social media channelsCollaboration with KOLs & Bloggers
Quality Diamond and Jadeite with Design on Premium
Stringent Quality and Service Standards
Charismatic Endless Collections
Widely Recognised as a Prestigious Brand
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Recognised as Quality Tourism
Services-accredited shop by HKTB
High Jewellery Collection by Cindy Yeung launched in Nov 2017
Short film featuring High Jewellery Collection (by Cindy Yeung) on Youtube
Exposure on social media platforms
Heartbeat Collection
Ms. Charlene Choi featuring Heartbeat Collection
Well-trained staff who possess professional product knowledge and provide excellent customer servicesAdvise tips on jewellery care and maintenance Offer comprehensive after-sale services
Instagram Facebook
Product Quality
Assure quality and authenticity of the gem-sets~ 90% of diamond stones weighting 1ct or above are in upper colour range (i.e. colour D to J)
>90% of diamond stones weighting 1ct or above are certified by GIA
Mr. Nicolas Tsefeaturing Yo Yo Collection
Service Standards
Emphasis on product knowledge of the staff and professional services to the customers
Maintain 1 qualified GIA certificate holder out of 5 jewellery sales executives in HK and Macau
www.emperorwatchjewellery.com Issued on 29 Aug 2018
Mini Me Collection launch event in Apr 2018
Financial Review
Revenue Breakdown
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*Others represent color stones, pearl and gold jewellery.
Emperor W&J declared an interim dividend of HK0.70 cent (1H2017: HK0.17 cent) per share.
Financial Summary
www.emperorwatchjewellery.com Issued on 29 Aug 2018
HK$ million FY2016 FY2017 1H2017 1H2018YOY
Changes
Revenue 3,642 4,075 1,827 2,454 + 34.3%
Gross Profit 909 1,089 487 677 + 39.0%
Gross Profit Margin 25.0% 26.7% 26.7% 27.6% + 0.9pp
Earnings/(Loss) BITDA (2) 207 61 198 + 224.6%
Earnings/(Loss) BITDA Margin (0.1)% 5.1% 3.3% 8.1% + 4.8pp
Net Profit/(Loss) (65) 160 39 157 + 302.6%
Net Profit/(Loss) Margin (1.8)% 3.9% 2.1% 6.4% + 4.3pp
Basic EPS/(LPS) (HK Cents) (0.94) 2.32 0.57 2.29 + 301.8%
Total Revenue FY2016 FY2017 1H2017 1H2018 Changes
(HK$m) Mix (%) (HK$m) Mix (%) (HK$m) Mix (%) (HK$m) Mix (%) (%)
By Product Segment
Watch 2,857 78 3,239 79 1,470 80 1,942 79 + 32.1Jewellery 785 22 836 21 357 20 512 21 + 43.4
Diamond & Jade 467 13 501 13 206 11 282 12 + 36.9Others* 318 9 335 8 151 9 230 9 + 52.3
Total 3,642 100 4,075 100 1,827 100 2,454 100 + 34.3
By Geographical Segment
HK 2,797 77 3,047 78 1,336 73 1,908 78 + 42.8Macau 211 6 234 6 105 6 149 6 + 41.9China 373 10 420 10 212 12 207 8 - 2.4Singapore 261 7 374 9 174 9 190 8 + 9.2Total 3,642 100 4,075 100 1,827 100 2,454 100 + 34.3
*Same Store Sales represents the % change of total sales of the comparable stores year-on-year.
Volume VS ASP
Key Performance Indicators
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*Others represent color stones, pearl and gold jewellery.
Financial Summary
www.emperorwatchjewellery.com Issued on 29 Aug 2018
FY2016 FY2017 1H2017 1H2018
Same Store Sales* (Overall) - 14.2% + 15.1% + 8.8% + 31.2%
Same Store Sales* (HK) - 13.2% + 14.3% + 8.2% + 37.0%
Store Rental / Total Revenue 12.9% 10.4% 11.9% 8.7%
Store Staff Cost / Total Revenue 4.8% 4.7% 4.9% 4.7%
Marketing Cost / Total Revenue 0.6% 0.5% 0.4% 0.5%
YE2016 YE2017 PE2017 PE2018
Gearing Ratio (Debts/Total Assets) Nil Nil Nil Nil
Gearing Ratio (Debts/Total Equity) Nil Nil Nil Nil
Stock Turnover Days 354 days 353 days 368 days 294 days
Inventory (HK$) $2,647m $2,651m $2,725m $2,875m
Cash on Hand (HK$) $1,324m $1,613m $1,426m $1,430m
Debts (HK$) Nil Nil Nil Nil
FY2016 FY2017 1H2017 1H2018
WatchNo. of Goods Sold (pcs) 35,789 37,527 17,456 22,220
ASP (HK$) $79,821 $86,301 $84,228 $87,378
Jewellery(Diamond and Jade)
No. of Goods Sold (pcs) 24,850 25,074 12,241 13,020
ASP (HK$) $18,808 $20,001 $16,853 $21,730
Jewellery(Others*)
No. of Goods Sold (pcs) 84,306 82,250 40,282 57,585
ASP (HK$) $3,769 $4,080 $3,741 $3,986
Times Square
No. 22-24
Times Square
Russell Street, Causeway Bay
Canton Road, Tsimshatsui
Retail NetworkRetail Network Covering HK, Macau, Mainland China and Singapore
Strong Presence on Prime Retail Locations
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LegendBusiness operated by Emperor W&J (887.HK)
Premises owned by Emperor International (163.HK)
1881 Heritage
China HK City Harbour City
Single-brandWatch Only
Multi-brand Watch
with/without Jewellery
Jewellery Only
Total Floor Area
Total (sq. ft.)
Average (sq. ft.)
Hong Kong 7 7 11 25 77,779 3,111
Macau 2 2 2 6 9,451 1,575
Mainland China 6 1 40 47 38,950 829
Singapore 4 - 2 6 4,988 831
Total 19 10 55 84 131,168 1,562
www.emperorwatchjewellery.com Issued on 29 Aug 2018
As of 30 June 2018
Future Strategies2018 Store Expansion Plan
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Opening Date Shop Details
Hong Kong
1 Apr 2018 Jewellery shop - Telford Plaza 1, Kowloon Bay, Kowloon
2 Jun 2018 Jewellery shop - Sunshine City Plaza, Ma On Shan, New Territories
3 Sep 2018 Jewellery shop - APM, Millennium City 5, Kwun Tong, Kowloon
4 Nov 2018 Jewellery shop - Temple Mall North, Wong Tai Sin, Kowloon
5 Nov 2018 Jewellery shop - New Jade Shopping Arcade, Chai Wan, Hong Kong
Macau
6 Apr 2018 Multi-watch shop - Emperor Nam Van Centre, No. 71-75 Avenida do Infante D. Henrique, Macau Peninsula
7 Jul 2018 Jewellery shop - Shoppes at Venetian, The Venetian Macao Resort Hotel, Cotai
Mainland China
8 Jan 2018 Jewellery shop - New Mart, Dasheng City Square, Zhongxing Road, Panjin, Liaoning (LNG)
9 Feb 2018 Rolex & Tudor boutique - Shin Kong Place, No.89 Hongjin Road, Chongqing (CQE)
10 Apr 2018 Multi-brand watch and jewellery shop - Emperor Group Centre , No. 12D Jianguomenwai Avenue, Beijing (J66 & J67)
11 Apr 2018 Jewellery shop - Orient Shopping Center, No. 66, Chengzhong Road, Shanghai (H35)
12 Apr 2018 Jewellery shop - Printemps Department Stores, No.1 Songhu Road, Shanghai (H36)
13 May 2018 Jewellery shop - FC Plaza Holiday Life City, Jiujingzhuang Road, Jiugong Town, Beijing(J69)
14 Jun 2018 Jewellery shop - Beijing LIVAT Centres, No.15 Xinning Street, Beijing (J70)
15 Jun 2018 Rolex &Tudor boutique - Chongqing Times Square, No.100 Zourong Road, Chongqing (CQF)
16 Aug 2018 Jewellery shop - Friendship Xintiandi Plaza, No.208 Binjiang Road, Tianjin (TJ1)
17 Aug 2018 Jewellery shop - World Trade Plaza, No. 686 Jiefang Road, Wuhan (HU2)
18 Aug 2018 Jewellery shop - Guangzhou Friendship Store (Guojing), No. 5 Zhujiang West Road, Zhujiang New Town, Guangzhou (GD5)
19 Sep 2018 Jewellery shop - Shin Kong Place, No.89 Hongjin Road, Chongqing (CQA)
20 Oct 2018 Tudor boutique - Beijing APM, No. 138 Wangfujin Avenue, Beijing (J68)
Malaysia
21 Oct 2018 Jewellery shop - Pavilion Kuala Lumpur, 168 Jalan Bukit Bintang, Kuala Lumpur, Malaysia
(-) represents internal shop number
www.emperorwatchjewellery.com Issued on 29 Aug 2018
Mr. Carlos Chan is appointed as “Star Store Manager” in
Grand Opening
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Expand jewellery business to enhance overall profit margin performanceIncrease the sales capacity by rolling out numerous collections on regular basis and direct marketing eventsTarget to achieve 50% of the overall revenue in medium to long term
Reinforce brand positioningPosition “Emperor Jewellery” as affordable luxuryImplement brand building exerciseEnhance brand exposure by participating in regional/international fashion and jewellery shows
Deepen market penetrationContinue to execute organic store expansion planRevamp stores and create fresh counters to enhance shoppers’ experience and enable effective customer segmentation
Enhance Jewellery BusinessFuture Strategies
Heartbeat Collection, 2017
Identify e-commerce opportunitiesSeek to operate e-commerce through online shopping platforms (e.g. Tmall, jd.com)to capture massive potentials of internet and mobile usersEnhance brand visibility on various websites to draw target customers from online to offlineExpand user database for analysing customer demographics and formulating effective product strategy
www.emperorwatchjewellery.com Issued on 29 Aug 2018
Crown de Emperor, 2016
Byzance de Emperor Collection, 2015 High Jewellery Collection by Cindy Yeung, 2017
Crown Your Life 12+1 Collection, 2017 MiniMe Collection, 2018
New Yo Yo Collection, 2018
Tmall
jd.com