Citychamp Watch & Jewellery Group (0256) AI Stock Analysis

• Market Cap: HK$774.64M
• Dividend Yield: N/A
• Average Volume (3M): 21.87M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -18.07%
• EPS Growth: -1041.89%
• Country: HK
• Employees: 2,965
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.01
• Shares Outstanding: 4,351,888,000
• 10 Day Avg. Volume: 6,292,091
• 30 Day Avg. Volume: 21,874,088
• PEG Ratio: 0.02
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 7.85
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.18 ▼(-1.11% Downside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining revenues and profitability issues. The technical analysis indicates a bearish trend, and the negative P/E ratio highlights valuation concerns. These factors collectively suggest significant risks for investors.

Positive Factors

Strong Gross Profit Margin

A high gross profit margin reflects strong pricing power and cost control, which are crucial for maintaining profitability in the luxury goods sector.

Stable Equity Base

A stable equity base provides financial resilience, enabling the company to withstand market fluctuations and invest in growth opportunities.

Diverse Revenue Streams

Diversified revenue streams reduce dependency on any single market or product line, enhancing long-term stability and growth potential.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market demand or competitive positioning, potentially affecting long-term growth prospects.

Rising Leverage

Increasing leverage can strain financial resources, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Negative free cash flow suggests liquidity challenges, which can hinder operational flexibility and the ability to finance new initiatives or manage debt.

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 generates revenue through multiple streams, primarily from the sale of luxury watches and jewellery. The company earns income through direct sales in retail outlets and online platforms, as well as through wholesale distribution to various luxury retailers worldwide. Additionally, Citychamp's revenue model includes licensing agreements for its brands, allowing other manufacturers to produce and sell products under its trademarks. Key partnerships with international luxury retailers and participation in high-profile industry events further enhance its market presence and sales potential. The company's strategic focus on expanding its product offerings and geographical reach also contributes significantly to its earnings.

Citychamp Watch & Jewellery Group Financial Statement Overview

Summary

Citychamp Watch & Jewellery Group faces declining revenues, negative net income, and inconsistent cash flows. Despite a stable equity base, rising leverage and negative profitability metrics are concerning.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.59B	1.73B	1.66B	2.04B	1.86B
Gross Profit	935.32M	1.03B	1.19B	926.12M	1.09B	980.32M
EBITDA	72.11M	-107.52M	242.03M	35.02M	110.73M	108.49M
Net Income	-303.14M	-254.07M	45.10M	-111.05M	-100.91M	-169.23M
Balance Sheet
Total Assets	20.09B	17.96B	16.53B	16.16B	19.96B	21.39B
Cash, Cash Equivalents and Short-Term Investments	7.32B	7.55B	4.06B	6.27B	6.51B	11.05B
Total Debt	672.88M	667.45M	739.30M	1.02B	1.20B	1.65B
Total Liabilities	16.06B	14.18B	12.17B	11.98B	15.34B	16.65B
Stockholders Equity	3.86B	3.61B	4.17B	4.01B	4.36B	4.42B
Cash Flow
Free Cash Flow	-1.18B	459.93M	-216.06M	-2.13B	1.75B	972.06M
Operating Cash Flow	-1.15B	466.98M	-182.28M	-2.04B	1.95B	1.16B
Investing Cash Flow	231.32M	-44.51M	-197.52M	239.41M	-580.03M	-221.70M
Financing Cash Flow	-128.97M	-143.72M	-351.43M	-286.63M	-442.11M	-320.09M

Citychamp Watch & Jewellery Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 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 0.18 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.20, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 30.26 is Neutral, neither overbought nor oversold. The STOCH value of 6.31 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
0590	77 Outperform	HK$15.08B	11.74	9.54%	4.43%	10.89%	2.02%
0398	70 Outperform	HK$1.66B	9.14	10.00%	9.67%	-9.00%	-21.55%
0887	69 Neutral	HK$1.68B	6.13	5.10%	4.05%	6.60%	-14.32%
1929	64 Neutral	HK$134.07B	22.86	23.74%	4.21%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$8.47B	7.18	9.13%	4.60%	-10.41%	67.25%
0256	48 Neutral	HK$774.64M	-2.55	-7.92%	―	-18.07%	-1041.89%

Citychamp Watch & Jewellery Group Corporate Events

Citychamp Watch & Jewellery Group Enhances Audit Committee Governance

Citychamp Watch & Jewellery Group Limited has outlined the terms of reference for its audit committee, emphasizing the need for a majority of independent non-executive directors and specific professional qualifications among its members. This move is likely to enhance the company’s governance and compliance with Hong Kong Stock Exchange listing rules, potentially strengthening stakeholder confidence.

Citychamp Watch & Jewellery Group Establishes Nomination Committee Guidelines

Citychamp Watch & Jewellery Group Limited has outlined the terms of reference for its Nomination Committee, which is responsible for reviewing the company’s board structure, size, composition, and diversity. The committee will consist of at least three members, with a majority being independent non-executive directors, and will meet at least once a year to ensure effective governance and stakeholder engagement.

Citychamp Watch & Jewellery Group Ends Inactive Joint Venture

Citychamp Watch & Jewellery Group Limited announced the termination of a joint venture agreement involving its subsidiary, Union United, and other partners. The joint venture, Citychamp Allied International Limited, was inactive since its inception, and its dissolution is not expected to impact the company’s business development or financial position.