Could you pls share some more insights about the kitchen appliance stores and G-Shock stores in NSW if you can?
In person, I bought a G-Shock watch 2 years ago and I do like it a lot and wear it very often and today I just discover this company.
I like the price/free cash flow at my first glance.
But no second guess to the management?
Regarding the IPO and the compensation plan to executives, I don't like it that much.
IPO raised $50.5million with $44.3 million paid to existing shareholders and $6.11 million paid to IPO helpers, basically leaves nothing to the company to develop especially when the kitchen appliance segment performs so soft and flat. Also check up CEO's cash bonus: $590 k fixed salary looks ok but $1.5mil for his hard work to get the company listed? and another $780 k to reward the company's stretch? I don't know. Maybe they really need good compensation after all these years hard work.
The price/ Free cash flow is attractive @3.8 and part of the reason is the inventory reduced without refilled due to a better software monitoring system but it seems like a one-off boost. Other than this, management also mentions kitchen appliance segment is negatively impacted by the sales channel change and expects it to perform better in the near future but the current EBIT/Revenue @ around 5% compared to Harvey Norman's 8.6% is still concerning me.
Definitely I love G-Shock watches but I still need to check up their stores to make sure the kitchen appliance is as attractive as G-Shock before I invest. Doesn't look that exciting if look closer.
SHM Price at posting:
85.0¢ Sentiment: None Disclosure: Not Held
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