Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Watches of Switzerland / Equity Bottom-Up

<ul>
<li>
Privileged Rolex distribution. <a href="https://www.smartkarma.com/entities/watches-of-switzerland-group-plc" target="_blank" data-smartkarma-citation="entities:34600:1" rel="noopener">Watches of Switzerland (WOSG LN)</a> is one of Rolex's most trusted retailers since 1919, with no online or price competition, no inventory risk, and pre-sold demand.</li>
<li>
The US is &gt;50% of group revenues.  US revenue grew 24% to $1.24bn in FY26, past 50% of sales in eight years, with a long runway as Rolex lifts production.</li>
<li>
 Cheap for the growth.  The shares trade at 8.2x FY26 EV/EBITDA and 18.2x P/E, with mid-teens ROCE, double-digit growth, and a return to net cash.</li>
</ul>



Privileged Rolex distribution. Watches of Switzerland (WOSG LN) is one of Rolex's most trusted retailers since 1919, with no online or price competition, no inventory risk, and pre-sold demand.

The US is &gt;50% of group revenues.  US revenue grew 24% to $1.24bn in FY26, past 50% of sales in eight years, with a long runway as Rolex lifts production.

 Cheap for the growth.  The shares trade at 8.2x FY26 EV/EBITDA and 18.2x P/E, with mid-teens ROCE, double-digit growth, and a return to net cash.


Watches of Switzerland (WOSG LN: Rolex-Anchored Compounder Scaling in the US At 8.2x EV-EBITDA

<ul>
<li>
<a href="https://www.smartkarma.com/entities/oriental-watch-holdings-limited" target="_blank" data-smartkarma-citation="entities:19950:1" rel="noopener">Oriental Watch (398 HK)</a>  stands out for its dividend yield of 12.6%, the highest in the peer group. The stock is priced as an income vehicle with a 7.7x P/E.</li>
<li>
<a href="https://www.smartkarma.com/entities/hour-glass-ltd" target="_blank" data-smartkarma-citation="entities:8879:1" rel="noopener">The Hour Glass (HG SP)</a> leads in operating quality, with the best EBITDA margin (20.6%), highest net margin (13.4%), and strongest ROE (18.0%) in the group, at a 9.7x PE.</li>
<li>
<a href="https://www.smartkarma.com/entities/watches-of-switzerland-group" target="_blank" data-smartkarma-citation="entities:34600:1" rel="noopener">Watches of Switzerland (WOSG LN)</a>  commands a clear valuation premium at 16.8x P/E and 7.9x EV/EBITDA, reflecting its Rolex partnership moat and US growth runway.</li>
</ul>



Oriental Watch (398 HK)  stands out for its dividend yield of 12.6%, the highest in the peer group. The stock is priced as an income vehicle with a 7.7x P/E.

The Hour Glass (HG SP) leads in operating quality, with the best EBITDA margin (20.6%), highest net margin (13.4%), and strongest ROE (18.0%) in the group, at a 9.7x PE.

Watches of Switzerland (WOSG LN)  commands a clear valuation premium at 16.8x P/E and 7.9x EV/EBITDA, reflecting its Rolex partnership moat and US growth runway.


Ticking Different: A Comparison of the World's Listed Luxury Watch Retailers With Exposure to Rolex

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Thematic (Sector/Industry)

In the recent release of The Committee On Future Economy (CFE) Report, the Singapore government brought up a few key trends that are affecting Singapore's economy, in particular: i) subdued global growth to continue in the next few years ii) rapid technological changes that can give way to new global value chains and production patterns  iii) Political uncertainties with the rising support for protectionism Below is the summary of seven key strategies presented by the Committee:1. Deepen and…

In the recent release of The Committee On Future Economy (CFE) Report, the Singapore government brought up a few key trends that are affecting Singapore's economy, in particular: i) subdued global growth to continue in the next few years ii) rapid technological changes that can give way to new global value chains and production patterns  iii) Political uncertainties with the rising support for protectionism  Below is the summary of seven key strategies presented by the Committee:1. Deepen and…

Singapore: Top Ten Words in CFE Report Highlight the Future of Education

Chairman, sgtradex

Tan Chin-Hwee

Chairman

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/019/992/original/Pisatest.jpg?1485928080" class="editor-image img-responsive" data-smartkarma-image-id="19992"></figure><div class="content-caption">By Theo Müller - Own work, <a href="https://commons.wikimedia.org/w/index.php?curid=837159" target="_blank">CC BY-SA 2.5</a>
</div>I was excited to read about Singapore's top ranking in the Pisa (<a href="https://en.wikipedia.org/wiki/Programme_for_International_Student_Assessment" target="_blank">Programme for International Student Assessment</a>) tests and the perfect score of our IB (International Baccalaureate) achievers.We should be proud of what we have achieved in such a short time as a country. Our position among the best today in educational terms is the result of the hard work and leadership of the Singapore Government and teachers. There are not many things from Singapore that…

By Theo Müller - Own work, CC BY-SA 2.5
I was excited to read about Singapore's top ranking in the Pisa (Programme for International Student Assessment) tests and the perfect score of our IB (International Baccalaureate) achievers.We should be proud of what we have achieved in such a short time as a country. Our position among the best today in educational terms is the result of the hard work and leadership of the Singapore Government and teachers. There are not many things from Singapore that…

Singapore's Education System Must Embrace the Frontier Beyond Academic Achievement

Freelance Research Analyst

Tay Hock Meng

Developers managed to sell 384 new units, excluding executive condominiums (ECs) in December 2015, compared to 759 units in November 2015, and 230 units in December 2014. Including ECs, developers sold a total of 508 new units in December 2015, compared to 945 new units in November 2015, and 406 new units in December 2014. The December 2015 results brings the total number of new private residential units sold by developers to around 7,460 to 7,490 in 2015, about 2% higher than 2014 (Comprehensive property sales results for 4Q and whole of 2015  is scheduled to be released by the government on January 22, 2016).

Developers managed to sell 384 new units, excluding executive condominiums (ECs) in December 2015, compared to 759 units in November 2015, and 230 units in December 2014. Including ECs, developers sold a total of 508 new units in December 2015, compared to 945 new units in November 2015, and 406 new units in December 2014. The December 2015 results brings the total number of new private residential units sold by developers to around 7,460 to 7,490 in 2015, about 2% higher than 2014 (Comprehensive property sales results for 4Q and whole of 2015  is scheduled to be released by the government on January 22, 2016). 

Singapore

The Hour Glass is a Singapore-based luxury watch retail group that also deals in jewelry and luxury properties. It operates over 70 boutiques across Asia-Pacific, serving as an official retailer for prestigious watch brands like Rolex, Patek Philippe, and Omega. The company was founded in Singapore in 1979.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

The Hour Glass (HG SP)

Watches of Switzerland (WOSG LN: Rolex-Anchored Compounder Scaling in the US At 8.2x EV-EBITDA

The UK's largest luxury watch retailer and Rolex's key UK/US partner, compounding revenue double digits as the US scales past half of sales, at 7x...

Sameer Taneja

Ticking Different: A Comparison of the World's Listed Luxury Watch Retailers With Exposure to Rolex

Watches of Switzerland owns the Rolex relationship; HourGlass wins on margins/operations; Cortina is the quiet compounder; Oriental pays you to...

Sameer Taneja

Singapore: Top Ten Words in CFE Report Highlight the Future of Education

In the recent release of The Committee On Future Economy (CFE) Report, the Singapore government brought up a few key trends that are affecting...

Valerie Law, CFA

Singapore's Education System Must Embrace the Frontier Beyond Academic Achievement

I was excited to read about Singapore's top ranking in the Pisa (Programme for International Student Assessment) tests and the perfect score of our...

Tan Chin-Hwee

Modest Rise in New Home Sales in 2015

Developers managed to sell 384 new units, excluding executive condominiums (ECs) in December 2015, compared to 759 units in November 2015, and 230...

Tay Hock Meng

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)