HLG - Hallenstein Glassons Holdings

[Waltzing]

Notice they built this maschine on NO Capital raises and have never done a buy back?

miracle stuff as reported by MR B...

In a depressing market its a bright note to end the week on. Many Thanks.

[arekaywhy]

I tell you what, it is real hard not to be sentimental about this stock

[Basil]

I tell you what, it is real hard not to be sentimental about this stock

I've given up trying not to be and have backed up the truck.  Oldest listed company on the NZX.  On top of everything else I have mentioned about this company it's hard not to really love the history and longevity of this company....oh and let's not forget at the risk of being dogmatic  , best stock turn in the retail sector, highest online sales percentage of any listed N.Z. retailer, no debt, proven history of half a decade of strong growth of Glassons Au with a HUGE runway of growth ahead over there, $35m cash in the bank which is ~ 59 cents per share, still trades cum a 24 cent divvy next month....I could go on but you get the idea lol   HLG, the gift you give yourself with a growing 10% gross yield...I bought a LOT for my birthday....very happy Beagle 😁 

[Basil]

https://www.interest.co.nz/business/118467/review-things-you-need-know-you-sign-tuesday-housing-market-stays-weak-visitor 
$N.Z. now recovered ~10% from its recent low of under 56 cents to be ~ 61.5 cents this evening and now within a couple of cents of the 10 year average which from memory sits at about 63 cents.

That's one headwind that is abating and will help with Autumn and Winter 2023 stock purchases, (I assume all summer stock is already on hand).
Shipping rates coming down ?

[Waltzing]

based in yield price still not doing anything much which is great for anyone loading up....

[Basil]

based in yield price still not doing anything much which is great for anyone loading up....

I've been doing a very good impersonation of a vacuum cleaner lately.  Just trying to hoover as many shares up as I can in the low 530's. 

[Onemootpoint]

I've been doing a very good impersonation of a vacuum cleaner lately.  Just trying to hoover as many shares up as I can in the low 530's. 

Must have been a Dyson.... Price moved back up during the afternoon session. 

[Waltzing]

who did that... WHO DID THAT!!!

[Capt_Hook]

Bottom Feeders (Beagle)  had their day, not going to stay low forever with a 24cent DIV beckoning.

[Basil]

Bottom Feeders (Beagle)  had their day, not going to stay low forever with a 24cent DIV beckoning.

Not to forget another ~ 24 cent (mostly imputed), dividend in mid-April. (My forecast)
You'd expect dividend hounds to get themselves well positioned for those two huge feeds wouldn't you

More to the point for a semi-retired old hound like me I've taken a 5 year view of this as a minimum and I think they can double the size of their business over that timeframe, see previous posts on Glassons Au growth, so it's possible that by 2027 we could be talking about as much as $1 per annum in dividends  ..and I think a $10+ handle goes with that....but just keeping my expectations in check a bit in the meantime I think it's highly likely that the future growth in dividends will beat the inflation rate and we'll see real increases in income in the years ahead.  That's my main focus, I'll let the share price look after itself.
 

[Waltzing]

"$10+ handle"

WOA ....

[winner (n)]

I reckon first half profit will be about $23m and second half $19m

Seems outrageous but don't forget sales up nearly 70% in start of year

That's $42m for the year ... a RECORD

That $42m is and EPS of 70 cents

What divie can punters exoect from that?

[Basil]

It would be nice to see them hold a fair bit of that 70 cents back, (say 20 cents ~ $12m), and take the rate of Glassons Au store expansion to the next level.
Such a huge dressable market over there and at this stage they have only just scratched the surface and have one less store there than in N.Z.
I'd like to see them double their Australian footprint from 35 to 70 stores by 2027.    4 extra stores over there last year, several part way through the year so we'll get the full 12 month effect of that expansion this year.  I'd like to see the expansion rate grow to 5-6 extra stores per annum in the next 2 years and then 7-8 annually after that.  Its clear Australia women have embraced Glassons as a fresh young brand over there and the business has critical mass there now and efficient distribution channels.  Its time to put the throttle down and supercharge Glassons Au growth.  That said there's nothing wrong whatsoever with their 5 year average growth rate there so far, averaging 26% per annum sales growth is very impressive indeed !

Really looking forward to their annual meeting on 15th December and getting an update on their strong growth year to date...and oh yeah, I'm also really looking forward to the 24 cent dividend on 16th December as well just in time for Christmas!  I might be able to afford a super-sized Christmas Ham this year 😁

[winner (n)]

Australia clothing stores (as per ABS data) annual sales are about $22 billion

Glasson's AU sales about $160m ... or $0.16 billion

So less than 1% share

Yep heaps of dressable market share there to take ..... and greater exposure in more states.

[Basil]

Australia clothing stores (as per ABS data) annual sales are about $22 billion

Glasson's AU sales about $160m ... or $0.16 billion

So less than 1% share

Yep heaps of dressable market share there to take ..... and greater exposure in more states.

Wouldn't surprise me at all to see them get to a 1% share $A220m sales ~ $NZ240m this year compared to $NZ157m last year.  I know 52% Glassons Au sales growth for the full year sounds ambitious but there were a LOT of lockdowns last year.