2019/20 Annual Results Corporate Presentation · International Housewares Retail Company Limited 2...
Transcript of 2019/20 Annual Results Corporate Presentation · International Housewares Retail Company Limited 2...
1International Housewares Retail Company Limited2019/20 Annual Results
2019/20 Annual Results
Corporate Presentation
29 July 2020
2International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Disclaimer
2
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3International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Agenda
3
Business Highlights
Financial Performance
Business Review by Market
Outlook and Strategies
4International Housewares Retail Company Limited2019/20 Annual Results
Business Highlights
5International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
5
Results Highlights
Profit attributable to equity holder up
26.8% to HK$150.9M
Singapore turnaround,
contribution profit to the Group
Hong Kong sales growth 8.1%
Group gross profit increased by 9.6% to
HK$1.18B
Group revenue grew 8.2% to HK$2.54B
Proposed final dividend 11HK
cents/share
6International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Physical Store Retail Network
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FY2017 FY2018 FY2019 FY2020
Hong Kong 290 290 305 312
Singapore 57 48 44 49
Macau 8 8 7 8
Number of directly-owned stores
270 stores
6 stores
31 stores
49 stores in Singapore
8 stores in Macau
9 licence stores in
four jurisdictions
66 Overseas Stores 312 Stores in Hong Kong
5 stores
7International Housewares Retail Company Limited2019/20 Annual Results
Financial Performance
8International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
For the year FY2020 FY2019
Turnover (HK$’000) 2,542,384 2,350,351
Gross Profit (HK$’000) 1,184,161 1,080,654
Net profit (HK$’000) 156,064 118,271
Profit attributable to equity holders (HK$’000) 150,927 119,052
Key ratios
Gross Margin 46.6% 46.0%
Operating Margin 7.8% 5.9%
Net margin 6.1% 5.0%
Total Dividend
Interim dividend (HK cents) 5.5 5.3
Final dividend (HK cents) 11.0 9.0
Total Dividend (HK cents) 16.5 14.3
Financial Performance – FY2020
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9International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
As at 30-Apr FY2020 FY2019
Cash and cash equivalents (HK$’000) 362,737 369,703
Inventory Turnover (1) (days) 84 81
Trade Payable Turnover (2) (days) 41 46
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Notes:
1. Inventory turnover = (Opening Inventory + closing inventory) / 2 / Cost of sales x 365
2. Trade payables turnover = (Opening trade payable + Closing trade payables) / 2 / Cost of sales x 365
Financial Performance – FY2020
10International Housewares Retail Company Limited2019/20 Annual Results
Business Review by Market
11International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Revenue Breakdown
Revenue breakdown
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Macau
Singapore
Hong Kong
88.1%
10.2%
% to Group’s Revenue
1.7%
HK$’000FY20
1,941,285 2,071,443
2,239,162
248,841 237,715
258,87939,976
41,193
44,343
FY2018 FY2019 FY2020
Hong Kong Singapore Macau
2,350,3512,203,102
2,542,384
12International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
FY 2020 FY 2019
Number of stores at 30-April 312 305
Sales growth 8.1% 6.7%
Net margin 6.0% 5.6%
CSSG 4.6% 4.8%
Hong Kong – 1st Market – Strategic Focus
Revenue growth driven by CSSG and new store openings
Strong international sourcing ability amid supply chain interruptions caused by COVID-19
Further integration of JHCeshop, Easy Buy, Jfun and social media apps to prepare for growing online
shopping population
Diversify product offerings, e.g. allying with global brand FMCG trader for smooth supplies
Private label: Matsusho electrical appliances and gadgets, digiMomo mobile phone accessories, EZ
cook value cookware and Pole Bear thermo products
Creating distinctive brand image for ELLA and $Mart
Shaping JHC towards convenience GMS chain
Set up protective mask production line in Hong Kong under the brand name of “SMILE 365”
Following the Government housing plans to further expand physical store network
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13International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Singapore – 2nd Market – Optimistic
Strong sales growth driven by CSSG, no. of tickets & new store opening
Full-year profit for the first time in 6 years
Attracting traffic by in-shop “Must Buy Corner” selling snack & FMCG – big contributor to sales growth
Strategic partnership with local branded snacks & FMCG trader, securing value stock supplies
Recruiting and retaining local talents for business expansion
Tapped into the Group’s PRC supply chain to add operation efficiency and sourcing power
Seeking potential locations for new store opening to grow sales and profits
Stepping up online channels development – enhancing “Jfun” app; launching “EasyBuy”; setting up self-
operated eshop with linkage to our existing eshops on Q0010 and Lazada; and achieving an overall
integrated e-platform with all these components
Start to sell cash/gift vouchers to add repeat buy and enlarge customer base
13
For the year FY2020 FY 2019
Number of stores 49 44
% of sales to group’s revenue 10.2% 10.1%
CSSG 9.8% 6.1%
14International Housewares Retail Company Limited2019/20 Annual Results
Outlook and Strategies
15International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Focusing in Hong Kong, Singapore & Macau1
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Keeping leading position in Hong Kong
Optimistic about the business
development & profitability in Singapore
Seeking right locations for store
opening in the profitable Macau market
Transforming ourselves to convenience
GMS chain
In-depth integration of physical stores
and e-platform (eshop, Easy Buy, Jfun
and social media) to further strengthen
O2O platform and to shape our
business strategies.
16International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Simple ◆ Fast Retailing : 123 by Ella2
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Store re-fit, fresher, cozier &
younger look
Widening product categories &
price range
Bringing in value international
branded beauty & personal
FMCG items
Expanding sourcing network
In-store promotion plan to
drive sales
Highly differentiated from JHC
to tap into younger segment
17International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
New Product Category & New Retail Brand
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Brand position - great price, convenience and wide-variety
Distinctive store format – a good mix of direct import FMCG, mainly on food and personal care
products
Big growth potential, seeking right locations for new store opening
Benefited from Group’s extensive sourcing network and Group’s volume purchase hence competitive
price
Strategic partnership with international FMCG trader to secure smooth supplier
2
18International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Reinforce leading position and sustainable growth
3.1
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Create brand
consistency across
different categories
Add new value to
regular top selling
items
set up production
line in Hong Kong
to produce
protective mask
Provide stable local
mask supply to
meet customer
demand
Activate digital
content strategies
via social media
apps
Space saving &
multifunctional
design for tiny home
Provide everyone
should have digital
items
Start with basic and
move to tech items
Complimentary to
int’l brand offering
Based on our local
knowledge on
customer trends
Private Label Development ◆ Continuous Efforts on House Brand Building
19International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Easy Buy
• In-store shopping iPanel,
• Wide variety of products for
customers’ orders
• Solution for limited space;
reduce stockholding
Reinforce leading position and sustainable growth
3.2
19
JHC Omni-Channel Retailing
J Fun App
• Customer loyalty
• Gain points for purchase
at store, eshop or Ipanal
• Push promotion message
Social media
• Create brand content;
post promotion message;
publicizing house brand
products
Physical Retail Store
Network
• JHC - Iconic brand of
housewares convenience
store
• Over 300 stores in HK
JHCeshop
• Wide variety of products
under different
categories for online
buying
• Home delivery / store
pick-up
20International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Reinforce leading position and sustainable growth
3.3
20
In-house Protective Face Mask Production
Shortage of protective face masks in
the earlier stage of Covid-19
prompted the decision
Set up and operated by experienced
factory manager
Put in production in July 20
Aim at provide stable supply to meet
on-going customer demand
21International Housewares Retail Company Limited2019/20 Annual Results
Stock code: 1373
International Housewares Retail Company Limited2019/20 Annual Results
Network Expansion Plan and CAPEX
Planned store expansion & estimated capital expenditures
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Store expansion (Net increase in number of stores)
Actual at
30 Apr 20
Net increase
FY21
Net increase
FY22
Hong Kong (incl. 123 by Ella) 312 12 12
Macau 8 2 2
Singapore 49 5 5
Total: 369 19 19
Estimated capital expenditureHK$ million
FY21 FY22
New store openings (incl. relocations) 20 21
Ongoing renovations of existing stores 20 21
ERP system & logistics improvement 10 10
22International Housewares Retail Company Limited2019/20 Annual Results
Q & A
23International Housewares Retail Company Limited2019/20 Annual Results
Thank You!