Oriental Watch Holdings (0398) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: 0.79%
• Average Volume (3M): 559.76K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.23
• Revenue Growth: -7.42%
• EPS Growth: -17.86%
• Country: HK
• Employees: 609
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Luxury Goods
• EPS (TTM): 0.24
• Shares Outstanding: 487,358,220
• 10 Day Avg. Volume: 746,092
• 30 Day Avg. Volume: 559,764
• PEG Ratio: -0.41
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.31
• 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: 72 Outperform
• Price Target: ―

Oriental Watch Holdings scores well due to its strong financial foundation, characterized by robust cash flows and a healthy balance sheet. The stock's valuation is attractive, with a low P/E ratio and high dividend yield, making it appealing for value and income investors. However, technical analysis indicators show neutral to slightly bearish signals, which could imply short-term caution. Overall, the stock presents a stable long-term investment opportunity, although operational efficiency improvements would enhance its prospects further.

Oriental Watch Holdings Business Overview & Revenue Model

Company Description

Oriental Watch Holdings Limited, an investment holding company, engages in watch trading business in Hong Kong, Macau, Taiwan, and Mainland China. It offers watches of various brands, such as Rolex, Tudor, Piaget, Grovana, Hublot, Oris, Sacom, Omega, Titoni, Rado, etc. The company also holds properties. As of March 31, 2022, it operated 44 retail stores and 1 online store in Hong Kong and Mainland China. The company was founded in 1961 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Oriental Watch Holdings Limited generates revenue primarily through the retail sale of luxury watches. The company's key revenue streams include direct sales from its retail stores, which are positioned in prime locations to attract affluent customers. Additionally, Oriental Watch Holdings engages in wholesale distribution, supplying luxury watches to other retailers. The company's earnings are further enhanced by its relationships with renowned Swiss watch manufacturers, allowing it to offer exclusive timepieces. The strategic location of its stores in high-traffic areas and its reputation for providing exceptional customer service contribute significantly to its revenue generation.

Oriental Watch Holdings Financial Statement Overview

Summary

Oriental Watch Holdings demonstrates a solid financial position with strong cash flows and a healthy balance sheet. While profitability metrics show some areas for improvement, particularly in operational efficiency, the company's low leverage and strong cash generation capabilities provide a stable foundation for future growth.

Income Statement

The company shows a moderate revenue growth with a decline in recent years. The gross profit margin is strong, and the net profit margin remains stable, indicating efficient cost management. However, the decline in EBIT and EBITDA margins in the latest year suggests potential pressure on operating efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a strong equity position. The debt-to-equity ratio is low, reflecting minimal leverage risk. Return on Equity (ROE) shows a slight decrease, indicating room for improvement in utilizing equity efficiently.

Cash Flow

The cash flow position is robust with positive operating and free cash flows. Free cash flow growth has been strong in previous years, though it has faced some decline recently. The operating cash flow to net income ratio is solid, indicating good cash conversion from profits.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.59B	3.64B	3.70B	3.64B	3.50B	2.35B
	Gross Profit
1.14B	1.15B	1.05B	1.05B	850.00M	645.33M
	EBIT
333.78M	354.02M	406.87M	450.02M	316.96M	140.12M
	EBITDA
385.49M	568.34M	587.15M	615.43M	458.85M	305.60M
	Net Income Common Stockholders
231.84M	250.49M	295.43M	362.57M	233.26M	100.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.10B	910.86M	1.09B	1.29B	1.07B	959.99M
	Total Assets
2.57B	2.39B	2.62B	2.88B	2.73B	2.51B
	Total Debt
195.07M	266.43M	352.12M	470.12M	368.89M	313.10M
	Net Debt
-894.32M	-632.21M	-726.66M	-812.32M	-692.43M	-623.53M
	Total Liabilities
732.88M	591.51M	723.33M	843.11M	736.98M	430.33M
	Stockholders Equity
1.83B	1.79B	1.89B	2.04B	1.99B	2.08B
Cash Flow		Free Cash Flow
313.54M	293.50M	399.52M	679.29M	630.37M	268.49M
	Operating Cash Flow
360.13M	346.99M	446.49M	752.12M	660.35M	309.62M
	Investing Cash Flow
-43.47M	-67.84M	-61.71M	-97.64M	-65.01M	-65.81M
	Financing Cash Flow
-413.64M	-423.46M	-530.65M	-457.74M	-497.71M	-367.63M

Oriental Watch Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0398, the sentiment is Positive. The current price of 3.75 is above the 20-day moving average (MA) of 3.60, above the 50-day MA of 3.54, and above the 200-day MA of 3.39, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 73.28 is Negative, neither overbought nor oversold. The STOCH value of 98.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0398.

Oriental Watch Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0398	72 Outperform	$1.83B	7.88	12.68%	0.79%	-7.42%	-17.86%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
CEBTF		$230.08M	65.56	-6.53%	―	―	―
DCOHF		$337.39M	9.49	5.58%	4.19%	―	―
EPRJF		$508.47M	12.24	4.99%	0.96%	―	―
HENGF		$58.91M	24.00	-2.04%	―	―	―
0280	80 Outperform	HK$395.55M	5.03	10.53%	3.68%	-5.57%	-7.10%

Oriental Watch Holdings Corporate Events

Oriental Watch Holdings Announces Change in Hong Kong Share Registrar

Oriental Watch Holdings Limited, a company incorporated in Bermuda, has announced a change in their Hong Kong branch share registrar and transfer office. Effective from 17 February 2025, Tricor Investor Services Limited will take over these responsibilities, which signifies an operational transition for the company. Stakeholders are advised to direct all share registration and transfer applications to the new office from the specified date.