Company Briefs: The Hour Glass; Hong Leong Finance

The Hour Glass

Luxury watch retailer The Hour Glass has made a net profit of $13.5 million for the second quarter, 26 per cent higher than $10.7 million in the corresponding period a year ago.

This translated to earnings per share of 1.92 cents, up from 1.52 cents year on year.

Revenue came in at $174.7 million for the three months ended September, or a one per cent improvement over last year's $173 million.

First-half profit rose 57 per cent from $17.7 million to $27.8 million, despite a much smaller rise - 5 per cent - in revenue over the same period.

Higher profit was achieved due to improved gross margins from 21.7 per cent to 24.9 per cent amid "tighter business controls".

Earnings per share for the half-year rose from 2.51 cents to 3.94 cents.

Hour Glass' group managing director Michael Tay said in a statement: "There has been some uplift in the global specialist luxury watch market due to improved consumer sentiment and desirability for the brands we partner with."

Hong Leong Finance

Hong Leong Finance posted a net profit of $36.7 million for its third quarter, up 55.6 per cent from $23.6 million a year ago, on the back of higher net interest income.

Earnings per share rose to 32.9 cents, up from 21.19 cents previously.

Net interest income/hiring charges rose 15.4 per cent to $54.7 million for the quarter ended Sept 30 as compared with $47.4 million a year ago, as a higher average loan yield from floating rate loans outpaced a rise in funding costs amid the rising interest rate environment.

The group noted write-back provisions and recoveries amounted to $7.4 million for the quarter.

Deposits and balances of customers closed at $11,298 million, up 6 per cent from $10,659 million a year ago, in line with higher funding requirements.

The nine months ended Sept 30 also showed net profit rising 51.2 per cent to $92.1 million, from $60.9 million in the previous corresponding period.

The group said it continues to maintain adequate loss allowances in respect of its loan portfolio.

Net interest income for the nine months also increased to $158.4 million, 25.4 per cent higher from $126.3 million a year ago.

An interim dividend of five cents declared in the previous quarter was paid on Sept 12.

No further interim dividend has been declared.

A version of this article appeared in the print edition of The Straits Times on November 14, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe