7.5x PER and 4% dividend yield, but why isn’t the market providing more love to this company by re-rating them higher?

This was the exact question running through my mind when I purchased this company and then divested it thereafter, within a short period of time.

I’ll go through some of my thought process, as well as collating the research I’ve done on this company in this article.

Business Model

THG has been a well-known luxury retail name for a number of years now. 

Founded in 1979 by husband and wife, Chairman Henry Tay and Mrs. Jannie Tay, the first store was opened at Lucky Plaza in some 40 years ago.  Over time, they branded themselves as one of the world’s leading luxury watch retail groups with established presence of 40 boutiques in 11 key cities in the Asia Pac region. THG’s network of multi-brand and standalone boutiques are strategically located in key