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Oriental Watch Holdings Limited (HK:0398)
:0398
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Oriental Watch Holdings (0398) AI Stock Analysis

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HK:0398

Oriental Watch Holdings

(OTC:0398)

Rating:66Neutral
Price Target:
HK$3.50
▲(2.64% Upside)
Oriental Watch Holdings' overall stock score is driven by a strong valuation, with a low P/E ratio and high dividend yield providing significant appeal. However, financial performance is mixed, with strong balance sheet metrics offset by weaker revenue growth and cash flow generation. Technical analysis indicates a lack of strong momentum, contributing to a moderate overall score.

Oriental Watch Holdings (0398) vs. iShares MSCI Hong Kong ETF (EWH)

Oriental Watch Holdings Business Overview & Revenue Model

Company DescriptionOriental Watch Holdings Limited (stock code: 0398) is a Hong Kong-based retailer and wholesaler specializing in luxury watches. Established in 1971, the company operates through various segments, including retailing, wholesaling, and servicing high-end timepieces. Oriental Watch Holdings offers a wide range of products from prestigious brands such as Rolex, Omega, and TAG Heuer, catering to affluent customers seeking premium and luxury watch brands.
How the Company Makes MoneyThe company generates revenue primarily through the retail and wholesale of luxury watches. Its revenue model is based on selling high-margin products, with the retail segment being a significant contributor to earnings. Oriental Watch Holdings operates flagship stores and authorized boutiques, which attract affluent customers and provide an exclusive shopping experience. Additionally, the company earns revenue from servicing and maintaining luxury watches, creating an ongoing relationship with customers. Strategic partnerships with renowned watch brands help secure exclusive distribution rights, enhancing its market position and profitability. Seasonal promotions and marketing activities also play a role in driving sales, especially during festive seasons or luxury events.

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
75
Positive
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
80
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.59B3.45B3.64B3.70B3.64B3.50B
Gross Profit1.14B1.09B1.15B1.05B1.05B850.00M
EBITDA385.49M507.87M568.34M587.15M615.43M458.85M
Net Income231.84M200.50M250.49M295.43M362.57M233.26M
Balance Sheet
Total Assets2.57B2.24B2.39B2.62B2.88B2.73B
Cash, Cash Equivalents and Short-Term Investments1.10B847.89M910.86M1.09B1.29B1.07B
Total Debt195.07M195.26M266.43M352.12M470.12M368.89M
Total Liabilities732.88M488.73M591.51M723.33M843.11M736.98M
Stockholders Equity1.83B1.75B1.79B1.89B2.04B1.99B
Cash Flow
Free Cash Flow313.54M263.44M293.50M399.52M679.29M630.37M
Operating Cash Flow360.13M288.09M346.99M446.49M752.12M660.35M
Investing Cash Flow-59.76M24.07M-67.84M-61.71M-97.64M-65.01M
Financing Cash Flow-413.64M-363.95M-423.46M-530.65M-457.74M-497.71M

Oriental Watch Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.41
Price Trends
50DMA
3.46
Negative
100DMA
3.49
Negative
200DMA
3.49
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
49.67
Neutral
STOCH
61.90
Neutral
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 3.41 is above the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.46, and below the 200-day MA of 3.49, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$418.28M4.7411.22%6.59%14.24%3.63%
69
Neutral
HK$2.58B9.374.99%3.10%8.44%-14.06%
67
Neutral
HK$2.02B10.365.58%8.65%-19.93%-43.35%
66
Neutral
$1.66B8.2911.32%15.24%-5.19%-19.96%
56
Neutral
HK$25.46B5.06-2.69%5.60%-0.43%-53.15%
54
Neutral
$568.12M13.54-2.04%-27.93%-293.98%
43
Neutral
$1.61B62.16-6.53%-8.30%-661.54%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0398
Oriental Watch Holdings
3.41
0.55
19.19%
HK:0113
Dickson Concepts (International)
5.22
0.48
10.08%
HK:0280
King Fook Holdings Limited
0.46
0.16
53.33%
HK:0887
Emperor Watch & Jewellery
0.36
0.22
157.25%
HK:0256
Citychamp Watch & Jewellery Group
0.37
-0.61
-62.24%
HK:3389
Hengdeli Holdings
0.13
>-0.01
-5.11%

Oriental Watch Holdings Corporate Events

Oriental Watch Holdings Announces 2025 AGM with Key Resolutions
Jul 16, 2025

Oriental Watch Holdings Limited has announced its annual general meeting scheduled for August 20, 2025, where key decisions will be made, including the adoption of financial statements, declaration of dividends, election of directors, and appointment of auditors. The meeting will also consider a resolution to authorize the directors to issue additional shares, potentially impacting the company’s capital structure and shareholder value.

Oriental Watch Holdings Enhances Governance with New Nomination Committee
Jun 30, 2025

Oriental Watch Holdings Limited has established a Nomination Committee to align with the Corporate Governance Code and the Listing Rules of The Stock Exchange of Hong Kong. The committee will be responsible for reviewing the board’s structure and composition, identifying and recommending qualified board members, assessing the independence of non-executive directors, and supporting board performance evaluations. This initiative aims to enhance the company’s corporate strategy and governance practices.

Oriental Watch Holdings Announces Changes to Nomination Committee
Jun 26, 2025

Oriental Watch Holdings Limited has announced changes to its nomination committee, effective June 26, 2025. These changes include the appointment of Madam Yeung Man Yee, Shirley as a member, the cessation of Mr. Yeung Him Kit, Dennis as a member and chairman, and the appointment of Mr. Choi Man Chau, Michael as the new chairman. These adjustments are made to comply with new corporate governance requirements set by the Hong Kong Stock Exchange, which mandate gender diversity and specific leadership structures within the committee.

Oriental Watch Holdings Clarifies Leadership Roles
Jun 26, 2025

Oriental Watch Holdings Limited has announced the roles and responsibilities of its board of directors and key executives. The announcement outlines the leadership structure, with Mr. Yeung Him Kit, Dennis as Chairman and Managing Director, and other directors responsible for various strategic and operational functions. This clarification of roles is crucial for stakeholders as it reinforces the company’s governance and operational transparency, potentially impacting its industry positioning positively.

Oriental Watch Holdings Reports Decrease in Turnover but Maintains Profitability
Jun 19, 2025

Oriental Watch Holdings Limited reported a 5.2% decrease in turnover to HK$3,450 million for the year ended March 31, 2025. Despite the decline in revenue, the company achieved a profit of HK$200 million, with earnings per share at 41.14 HK cents. The company declared a final dividend of 4.2 HK cents per share and a special dividend of 12.5 HK cents per share, reflecting a commitment to returning value to shareholders despite challenging market conditions.

Oriental Watch Holdings Announces Final Dividend for FY2025
Jun 19, 2025

Oriental Watch Holdings Limited has announced a final ordinary dividend of HKD 0.042 per share for the financial year ending March 31, 2025. This decision, pending shareholder approval in August, reflects the company’s stable financial performance and commitment to returning value to its investors. The dividend will be paid on October 23, 2025, with key dates for shareholders to note, including the ex-dividend date on September 25, 2025, and the record date on October 8, 2025.

Oriental Watch Holdings Declares Special Dividend for 2025
Jun 19, 2025

Oriental Watch Holdings Limited has announced a special dividend of HKD 0.125 per share for the financial year ending 31 March 2025. This decision reflects the company’s strong financial performance and commitment to delivering value to its shareholders. The dividend will be paid on 23 October 2025, following shareholder approval on 20 August 2025. This move is likely to enhance shareholder confidence and solidify the company’s position in the luxury watch retail market.

Oriental Watch Holdings to Approve Annual Results and Consider Dividend
Jun 6, 2025

Oriental Watch Holdings Limited has announced that its board of directors will meet on June 19, 2025, to approve the company’s annual results for the fiscal year ending March 31, 2025, and to consider the recommendation of a final dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting stakeholders’ expectations and the company’s positioning in the luxury watch market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 16, 2025