Citychamp Watch & Jewellery Group (0256) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: N/A
• Average Volume (3M): 528.67M
• Price to Earnings (P/E): 62.2
• Beta (1Y): 0.31
• Revenue Growth: -8.30%
• EPS Growth: -661.54%
• Country: HK
• Employees: 2,965
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Luxury Goods
• EPS (TTM): -0.06
• Shares Outstanding: 4,351,888,000
• 10 Day Avg. Volume: 531,333,610
• 30 Day Avg. Volume: 528,671,470
• PEG Ratio: <0.01
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: ―

Citychamp Watch & Jewellery Group's overall stock score reflects significant challenges in financial performance, with declining revenues and profitability issues. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. Without positive earnings guidance or corporate events to offset these risks, the stock remains under pressure.

Citychamp Watch & Jewellery Group Business Overview & Revenue Model

Company Description

Citychamp Watch & Jewellery Group Limited, an investment holding company, manufactures, sells, and distributes watches and timepieces in Hong Kong, the People's Republic of China, Switzerland, the United Kingdom, Liechtenstein, and internationally. The company operates through Manufacturing and Distribution of Watches and Timepieces, Property Investments, and Banking and Financial Businesses segments. It offers watches and timepieces under the Rossini, Corum, Eterna, Dreyfuss & Co, J&T Windmills, Ernest Borel, and Rotary brands. The company is also involved in the property investment activities; distribution of glasses; and issuance of bonds. In addition, it operates a bank in Liechtenstein that offer financial services, including accepting client deposits and granting loans; and portfolio management, investment advice, transaction banking, and investment fund services for entrepreneurial families and individuals. Further, the company provides investment counselling services; acts as technical administrator of fund units; dealing and advising in securities; and watch maintenance and repairment, and technical advisory services, as well as acts as an alternative investment fund manager. The company was formerly known as China Haidian Holdings Limited and changed its name to Citychamp Watch & Jewellery Group Limited in May 2014. Citychamp Watch & Jewellery Group Limited is based in Kowloon, Hong Kong.

How the Company Makes Money

Citychamp Watch & Jewellery Group makes money primarily through the sale of luxury watches and timepieces under its portfolio of brands. The company generates revenue from multiple streams, including wholesale distribution to third-party retailers, direct sales through its own retail outlets, and online sales platforms. Additionally, Citychamp benefits from strategic brand partnerships and licensing agreements, which expand its market reach and brand visibility. The company's property investment segment also contributes to its earnings, providing rental income and capital appreciation from its real estate holdings.

Citychamp Watch & Jewellery Group Financial Statement Overview

Summary

Citychamp Watch & Jewellery Group is facing challenges with declining revenues, profitability issues, and inconsistent cash flows. The balance sheet indicates a moderate equity ratio but rising leverage. Negative net income and volatile cash flow, with recent negative free cash flow, suggest potential liquidity issues.

Income Statement

The company has experienced declining revenue over recent years with a notable decrease from 2019 to 2024. The gross profit margin in 2024 is around 64.7%, indicating efficient production, but the net income has turned negative, showing a net loss. The EBIT and EBITDA margins have also sharply declined, reflecting reduced operational profitability. Revenue growth has been negative, and the net profit margin is concerning due to substantial losses.

Balance Sheet

The balance sheet shows a stable equity base, but the debt-to-equity ratio has increased slightly from 0.18 to 0.21, indicating rising leverage. The equity ratio stands at about 20.1% in 2024, suggesting a moderate level of equity financing. Return on equity is negative due to net losses, posing a risk to long-term financial health.

Cash Flow

The cash flow statements reveal a volatile cash situation with significant swings in free cash flow. Despite a positive operating cash flow in 2021, recent years show negative free cash flow, indicating potential liquidity issues. The ratios of operating and free cash flow to net income are weak due to the net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.73B	1.66B	2.04B	1.86B
Gross Profit	1.03B	1.19B	926.12M	1.09B	980.32M
EBITDA	-107.52M	242.03M	35.02M	110.73M	108.49M
Net Income	-254.07M	45.10M	-111.05M	-100.91M	-169.23M
Balance Sheet
Total Assets	17.96B	16.53B	16.16B	19.96B	21.39B
Cash, Cash Equivalents and Short-Term Investments	3.79B	4.06B	6.27B	8.53B	11.05B
Total Debt	759.57M	730.28M	1.02B	1.20B	1.65B
Total Liabilities	14.18B	12.17B	11.98B	15.34B	16.65B
Stockholders Equity	3.61B	4.17B	4.01B	4.36B	4.42B
Cash Flow
Free Cash Flow	459.93M	-216.06M	-2.13B	1.75B	972.06M
Operating Cash Flow	491.11M	-182.28M	-2.04B	1.95B	1.16B
Investing Cash Flow	0.00	-197.52M	143.40M	-654.37M	-350.90M
Financing Cash Flow	-143.72M	-351.43M	-141.41M	-319.44M	-234.15M

Citychamp Watch & Jewellery Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0256, the sentiment is Negative. The current price of 0.43 is below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.46, and below the 200-day MA of 0.65, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 11.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0256.

Citychamp Watch & Jewellery Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$16.98B	10.86	-7.08%	3.03%	1.73%	-25.18%
0256	43 Neutral	$1.87B	62.16	-6.53%	―	-8.30%	-661.54%
CHOWF	―	$713.25M	6.42	6.25%	9.38%	―	―
CJEWF	―	$16.95B	22.37	22.73%	3.02%	―	―
EPRJF	―	$499.25M	12.24	4.99%	0.95%	―	―
LKFLF	―	$1.61B	11.23	8.44%	10.48%	―	―
ORWHF	―	$208.74M	9.66	11.32%	0.79%	―	―

Citychamp Watch & Jewellery Group Corporate Events

Citychamp Watch & Jewellery Group Announces 2025 Annual General Meeting

Citychamp Watch & Jewellery Group Limited has announced its upcoming annual general meeting scheduled for May 29, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of financial statements, re-election of directors, re-appointment of auditors, and authorization for the board to manage share capital issuance. These resolutions are crucial for the company’s governance and operational continuity, potentially impacting its market positioning and stakeholder interests.

Citychamp Watch & Jewellery Group Reports 2024 Financial Results with Notable Loss

Citychamp Watch & Jewellery Group Limited announced its annual results for the year ended 31 December 2024, reporting a total revenue of HK$1,335,623,000, a decrease from the previous year. The company experienced a loss of HK$281,652,000, compared to a profit in 2023, due to increased interest expenses and a significant drop in sales from non-banking and financial businesses. This financial performance may impact the company’s market positioning and stakeholder confidence.

Citychamp Watch & Jewellery Group Issues Profit Warning for 2024

Citychamp Watch & Jewellery Group Limited has issued a profit warning, indicating an expected loss of approximately HK$250 million for the year ending December 31, 2024, compared to a profit of HK$45.1 million in 2023. The anticipated loss is attributed to impairment loss on goodwill, inventory provisions, and weak consumer market sentiment, which are considered non-cash, non-recurring, and one-off factors. The final results will be announced on March 28, 2025, and stakeholders are advised to exercise caution.

Citychamp Watch & Jewellery Group Announces Board Meeting for Financial Results

Citychamp Watch & Jewellery Group Limited has announced that its board of directors will convene on March 28, 2025, to approve the company’s final results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting signifies a critical step in the company’s annual financial cycle, potentially impacting shareholder returns and market perception.

Citychamp Watch & Jewellery Group Announces Board Composition and Committee Roles

Citychamp Watch & Jewellery Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes both executive and independent non-executive directors, and has established four committees: Audit, Remuneration, Nomination, and Risk Management. This announcement underscores the company’s commitment to structured governance and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

Citychamp Watch & Jewellery Group Faces Board Compliance Challenge After Director’s Passing

Citychamp Watch & Jewellery Group Limited announced the passing of Mr. Zhang Bin, an independent non-executive director, which has resulted in non-compliance with several Hong Kong Stock Exchange Listing Rules regarding board composition. The company is actively seeking a suitable candidate to fill the vacancy and aims to restore compliance within three months.