Hour Glass share price in rocket form!
How high will it go? Since my last article on Hour Glass share price in May 2021, the counter went berserk. Back then, I had predicted that Hour Glass share price had the potential to reach $1.30. However, the counter went on a rampage and smashed a record high of $2.50 on 6 May 2022. Given the splendid form of Hour Glass share price, investors must be feeling surreal.
The supersonic form of Hour Glass share price is in stark contrast to the decline in the broad market. Despite the horrible operating environment, the management of Hour Glass managed to steer the company through the storm. For the past five years, revenue grew steadily from $698 million in FY2018 to a high of $1.03 billion in FY2022. During the corresponding period, net profit soared from $50 million to $155 million, a three-fold increase. Henceforth, the bullish form of Hour Glass share price is based on strong business fundamentals.
The raging form of Hour Glass share price has led to the market capitalization to cross the $1 billion mark. At the point of writing, the market capitalization was $1.66 billion. Within a year, Hour Glass has reached the billion-dollar league. This is certainly a remarkable feat! Question now is: how did the watch retailer pull this off?
Data from the Swiss Watch Industry revealed that export of Swiss luxury watches to Singapore had exceeded the pre-pandemic level. And it seems that Hour Glass had seized the opportunity. The full-year financial report showed that revenue for the South East Asia & Oceania rose to $921 million in FY2022 from $646 million in FY2021. In comparison, North East Asia increased incrementally to $112 million from $96 million in last year.
Source: Swiss Watch Industry
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in Hour Glass before. Whether Hour Glass share price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Hour Glass share price to continue shining?
The bull run of Hour Glass share price actually started in 2019 when the luxury watch industry emerged from a perennial oversupply issue. However, the recovery was short-lived as COVID-19 imploded out of nowhere in 2020 to cause Hour Glass share price to tank to a low of about $0.50 in April 2020. Since then, Hour Glass share price went on a supersonic run to hit a record high of $2.50 in May 2022 due to its robust business performance.
The key reason for the strong business performance is due to [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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