Est. in 1979, THG is one of Asia’s reputable luxury retail groups with 30 boutiques in nine key cities throughout the Asia Pacific Region. THG prides itself as world’s leading cultural retail enterprise. They have been recognised by notable international publications such as Monocle and Vanity Fair as one of the most influential specialty retailers in the world. Furthermore, THG has been accorded the ‘Best Watch Retail’ honours by Singapore Tatler in 2014.
Fundamental Analysis (I) Earnings: Business Operations THG operates across several countries – Singapore, Malaysia, Hong Kong, Australia, Thailand and Japan. The bulk of their profits, about 72%, come from their South East Asia and Australia operations. It may seem that THG has minimal reliance on the Chinese spending power, however, their exposure to Chinese mainlanders actually account for about 20% of THG’s sales. We would argue that this key clientele is responsible for THG’s historical performance ......