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

International Housewares Retail / Equity Bottom-Up

<ul>
<li>H1 FY24 (May-Oct 2023) was off to a sluggish start for the company, with a 4.7%/35% decline in revenue/adjusted NPAT. </li>
<li>The company cited soft demand, loss of business days due to inclement weather, one-offs in relocation or warehouses to efficient locations, and increased staff costs for poor profits.</li>
<li>Post the correction, the stock trades at a trailing PE of 11x and dividend yield of 8%, but we will have to wait further out as business conditions are worse. </li>
</ul>


H1 FY24 (May-Oct 2023) was off to a sluggish start for the company, with a 4.7%/35% decline in revenue/adjusted NPAT. 
The company cited soft demand, loss of business days due to inclement weather, one-offs in relocation or warehouses to efficient locations, and increased staff costs for poor profits.
Post the correction, the stock trades at a trailing PE of 11x and dividend yield of 8%, but we will have to wait further out as business conditions are worse. 


International Housewares Retail Company Limited (1373 HK): H1 FY24 Off To a Bad Start

<ul>
<li>
<a href="https://www.smartkarma.com/entities/international-housewares-retail-co-ltd" target="_blank" data-smartkarma-citation="entities:4546:1" rel="noopener">International Housewares Retail (1373 HK)</a> reported weaker than expected numbers, with revenues down 3% YoY and profits down 18% YoY for FY23 (down 10%/42% for H2 FY23).</li>
<li>The cause for the decline was the roll-off in COVID-related subsidies worth 30 mn HKD and weak revenues in Q4 FY23 owing to a surge in outbound travel.</li>
<li>The company declared a 10-cent final dividend ( Full Year: 22 cents). Post the correction in share price, it represents an 8.3% dividend yield. </li>
</ul>



International Housewares Retail (1373 HK) reported weaker than expected numbers, with revenues down 3% YoY and profits down 18% YoY for FY23 (down 10%/42% for H2 FY23).
The cause for the decline was the roll-off in COVID-related subsidies worth 30 mn HKD and weak revenues in Q4 FY23 owing to a surge in outbound travel.
The company declared a 10-cent final dividend ( Full Year: 22 cents). Post the correction in share price, it represents an 8.3% dividend yield. 


International Housewares Retail Co Ltd (1373 HK) - Weak End to FY23, Q1 FY24 Improving

<ul>
<li>
<a href="https://www.smartkarma.com/entities/international-housewares-retail-co-ltd" target="_blank" data-smartkarma-citation="entities:4546:1" rel="noopener">International Housewares Retail (1373 HK)</a> is an interesting value/growth (5-10% CAGR) play with a high-dividend yield of &gt;10%, trading at 8.1x FY23 PE. </li>
<li>The claim to fame for this company is the investment of legendary HK mid/small cap investor David Webb (who has a 6.9% stake in this company). </li>
<li>At a market cap of 2 bn HKD, the company has about 400 mn HKD net cash (20% of market cap), making it 6.9x ex-cash PE.</li>
</ul>



International Housewares Retail (1373 HK) is an interesting value/growth (5-10% CAGR) play with a high-dividend yield of &gt;10%, trading at 8.1x FY23 PE. 
The claim to fame for this company is the investment of legendary HK mid/small cap investor David Webb (who has a 6.9% stake in this company). 
At a market cap of 2 bn HKD, the company has about 400 mn HKD net cash (20% of market cap), making it 6.9x ex-cash PE.


1373 HK: Value Play 8x PE, Dividend Yield ~10%, 20% of Mkt Cap in Cash

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Activist and value investor David Webb has the uncanny ability to move stocks.
So much so, after a decade of picking a Xmas stock he liked - and was suitably invested - he abandoned the practice in <a href="https://webb-site.com/articles/pick2009.asp" target="_blank" rel="noopener">December 2009</a>. But not before his stock picks had out-performed the index by 552.8% in the preceding 10 years.
Webb's endorsement of stock, via announcing a substantial interest under Hong Kong Stock Exchange guidelines - i.e. ≥  5% of shares out - still carries significant weight today.
Most recently, he cleared 5% in <a href="https://www.smartkarma.com/entities/analogue-holdings-ltd" target="_blank" data-smartkarma-citation="entities:28661:1" rel="noopener">Analogue Holdings Ltd (1977 HK)</a> on the <a href="https://di.hkex.com.hk/di/NSForm1.aspx?fn=IS20201023E00391&amp;sa2=ns&amp;sid=246673&amp;corpn=Analogue+Holdings+Ltd.&amp;sd=10%2f06%2f2020&amp;ed=10%2f06%2f2021&amp;cid=0&amp;sa1=cl&amp;scsd=10%2f06%2f2020&amp;sced=10%2f06%2f2021&amp;sc=1977&amp;src=MAIN&amp;lang=EN&amp;" target="_blank" rel="noopener">20 October 2020</a>, and currently holds 7.01% as at <a href="https://di.hkex.com.hk/di/NSForm1.aspx?fn=IS20210520E00305&amp;sa2=ns&amp;sid=246673&amp;corpn=Analogue+Holdings+Ltd.&amp;sd=10%2f06%2f2020&amp;ed=10%2f06%2f2021&amp;cid=0&amp;sa1=cl&amp;scsd=10%2f06%2f2020&amp;sced=10%2f06%2f2021&amp;sc=1977&amp;src=MAIN&amp;lang=EN&amp;" target="_blank" rel="noopener">14 May</a>. I looked at the company in <a href="https://skr.ma/7H7sE" target="_blank" rel="noopener">Analogue Holdings (1977 HK): Lift-Off!</a>. Despite the share price run-up (+88%), no doubt largely pivoting off Webb's interest, the stock still looks cheap. 
According to the HKEx, Webb <a href="https://di.hkex.com.hk/di/NSSrchPersonList.aspx?sa1=pl&amp;scsd=21/06/2017&amp;sced=21/06/2021&amp;pn=webb&amp;src=MAIN&amp;lang=EN&amp;g_lang=en" target="_blank" rel="noopener">holds</a> another 21 stocks with a 5% interest or more. 
This insight takes a look at those stocks and analyses how long the "Webb-halo of outperformance" persists.

Activist and value investor David Webb has the uncanny ability to move stocks.
So much so, after a decade of picking a Xmas stock he liked - and was suitably invested - he abandoned the practice in December 2009. But not before his stock picks had out-performed the index by 552.8% in the preceding 10 years.
Webb's endorsement of stock, via announcing a substantial interest under Hong Kong Stock Exchange guidelines - i.e. ≥  5% of shares out - still carries significant weight today.
Most recently, he cleared 5% in Analogue Holdings Ltd (1977 HK) on the 20 October 2020, and currently holds 7.01% as at 14 May. I looked at the company in Analogue Holdings (1977 HK): Lift-Off!. Despite the share price run-up (+88%), no doubt largely pivoting off Webb's interest, the stock still looks cheap. 
According to the HKEx, Webb holds another 21 stocks with a 5% interest or more. 
This insight takes a look at those stocks and analyses how long the "Webb-halo of outperformance" persists. 

Hong Kong

International Housewares Retail Company Limited operates retail houseware retail stores. The Company offers customers a variety of houseware products in Hong Kong, Singapore, West Malaysia, China and Macau.

International Housewares Retail (1373 HK)

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International Housewares Retail (1373 HK)

International Housewares Retail Company Limited (1373 HK): H1 FY24 Off To a Bad Start

Post the correction, 1373 HK trades at a trailing PE of 11x and dividend yield of 8%, but we will have to wait further out as business conditions...

Sameer Taneja

International Housewares Retail Co Ltd (1373 HK) - Weak End to FY23, Q1 FY24 Improving

Trading at an 8.3% dividend yield with ~18% of its market capitalization in cash and a steady growth profile, we summarize 1373 HK results and why...

Sameer Taneja

1373 HK: Value Play 8x PE, Dividend Yield ~10%, 20% of Mkt Cap in Cash

International Housewares Retail (1373 HK) is an interesting value/growth (5-10% CAGR) play with a high-dividend yield of >10%, trading at 8.1x FY23...

Sameer Taneja

David Webb's Greatest Hits

The sweet spot, on a relative basis, is to remain invested up to around six months after Webb has declared his 5%+ holding. Beyond that, the...

David Blennerhassett

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