Attributable profit at watchmaker and distributor Stime Watch International shot up 110 per cent to $22.28 million in the first half thanks to strong sales of its own brand-name watches.
Founder and chairman Wilson Wong Wing-sing said yesterday its brands - Ross Rino, Philip Persio and Tobby Tobby - accounted for 36 per cent of sales of $175.88 million. Total sales increased 37.8 per cent for the first six months.
Mr Wong said gross profit margins on the brands reached 20 per cent, double that of the original equipment manufacturing. Operating profit before tax rallied almost 82 per cent to $20.02 million in spite of a $4.45 million one-time gain on property sales.
Stime, which floated in July, announced an interim dividend of three cents and five-for-one bonus warrants. The two-year warrants are worth $1.35 each, close to yesterday's closing price of $1.37.
Mr Wong, who described the profit surge as unexpected, said he was confident Stime would hit the full-year profit target of more than $36 million as forecast in its listing prospectus.
'In the second half we will focus more on our brands which are expected to contribute more than 50 per cent of Stime's sales,' Mr Wong said.
