Oriental Watch Holdings (0398) AI Stock Analysis

• Market Cap: HK$1.66B
• Dividend Yield: 10.35%
• Average Volume (3M): 624.44K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.21
• Revenue Growth: -5.19%
• EPS Growth: -19.96%
• Country: HK
• Employees: 609
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.17
• Shares Outstanding: 487,358,220
• 10 Day Avg. Volume: 437,020
• 30 Day Avg. Volume: 624,436
• PEG Ratio: -0.44
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 6.55
• 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: 70 Outperform
• Price Target: HK$4.00 ▲(19.05% Upside)

Oriental Watch Holdings scores a 70, driven by strong valuation metrics with a low P/E ratio and high dividend yield. However, mixed financial performance and neutral technical indicators moderate the overall score. The absence of earnings call and corporate events data means these factors do not influence the score.

Oriental Watch Holdings Business Overview & Revenue Model

Company Description

Oriental 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 Money

The 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 shows mixed financial performance. The balance sheet is strong with low leverage and a solid equity base, scoring 72. However, the income statement and cash flow scores are lower at 65 and 60, respectively, due to declining revenue growth and weakened cash flow generation.

Income Statement

Oriental Watch Holdings has shown a decline in revenue growth with a negative rate of -3.93% in the latest year, indicating challenges in maintaining sales momentum. The gross profit margin stands at 31.47%, which is healthy for the luxury goods industry, but the net profit margin has decreased to 5.81%, reflecting increased costs or reduced pricing power. EBIT and EBITDA margins are also lower compared to previous years, suggesting pressure on operational efficiency.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.11, indicating low leverage and financial stability. Return on equity is at 11.44%, showing a reasonable return for shareholders, though it has decreased from previous years. The equity ratio is robust, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Free cash flow has declined by 15.98%, pointing to potential challenges in cash generation. The operating cash flow to net income ratio is 0.83, suggesting that cash generation from operations is not fully covering net income. However, the free cash flow to net income ratio of 0.91 indicates that the company is still generating positive cash flow relative to its earnings, albeit at a reduced level.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.55B	3.45B	3.64B	3.70B	3.64B	3.50B
Gross Profit	805.53M	1.09B	1.15B	1.05B	1.05B	850.00M
EBITDA	246.32M	507.87M	522.97M	587.15M	675.67M	458.85M
Net Income	140.80M	200.50M	250.49M	295.43M	362.57M	233.26M
Balance Sheet
Total Assets	2.24B	2.24B	2.39B	2.62B	2.88B	2.73B
Cash, Cash Equivalents and Short-Term Investments	847.89M	847.89M	910.86M	1.09B	1.29B	1.07B
Total Debt	195.26M	195.26M	266.43M	352.12M	470.12M	368.89M
Total Liabilities	488.73M	488.73M	591.51M	723.33M	843.11M	736.98M
Stockholders Equity	1.75B	1.75B	1.79B	1.89B	2.04B	1.99B
Cash Flow
Free Cash Flow	151.84M	263.44M	293.50M	399.52M	679.29M	630.37M
Operating Cash Flow	170.14M	288.09M	346.99M	446.49M	752.12M	660.35M
Investing Cash Flow	-3.28M	24.07M	-67.84M	-61.71M	-97.64M	-65.01M
Financing Cash Flow	-363.95M	-363.95M	-423.46M	-530.65M	-457.74M	-497.71M

Oriental Watch Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 3.36 is below the 20-day moving average (MA) of 3.39, below the 50-day MA of 3.37, and above the 200-day MA of 3.35, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 49.21 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0280	―	HK$491.03M	5.56	11.22%	10.37%	14.24%	3.63%
0887	―	HK$2.03B	7.56	5.10%	3.57%	6.82%	42.74%
0398	―	HK$1.66B	8.22	11.32%	10.35%	-5.19%	-19.96%
0113	―	$1.99B	10.24	5.58%	8.57%	-19.93%	-43.35%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3389	―	$550.50M	-13.89	-1.15%	―	-41.44%	-209.76%
0256	―	$748.52M	62.16	-7.92%	―	-18.07%	-1041.89%

Oriental Watch Holdings Corporate Events

Oriental Watch Holdings Approves Key Resolutions at Annual General Meeting

Oriental Watch Holdings Limited announced that all resolutions were approved at its annual general meeting held on August 20, 2025. Key resolutions included the adoption of financial statements, declaration of dividends, re-election of directors, and mandates related to share allotment and repurchase. The approval of these resolutions reflects strong shareholder support and may positively impact the company’s strategic initiatives and market positioning.

The most recent analyst rating on (HK:0398) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on Oriental Watch Holdings stock, see the HK:0398 Stock Forecast page.