Oriental Watch Holdings (0398) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: 10.28%
• Average Volume (3M): 663.29K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.22
• 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: 476,168
• 30 Day Avg. Volume: 663,286
• 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: 0.65
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: 4.36
• 1Y Price Target: $3.97
• Price Target Upside: 16.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: HK$4.00 ▲(16.96% 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: 3.42
• 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 3.42 is above the 20-day moving average (MA) of 3.39, above the 50-day MA of 3.32, and above the 200-day MA of 3.35, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 59.15 is Neutral, neither overbought nor oversold. The STOCH value of 38.13 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	80 Outperform	HK$481.93M	5.46	11.22%	10.57%	14.24%	3.63%
0398	70 Outperform	$1.66B	8.29	11.32%	10.28%	-5.19%	-19.96%
0113	70 Neutral	HK$2.01B	10.34	5.58%	8.64%	-19.93%	-43.35%
0887	66 Neutral	$2.03B	7.43	5.10%	3.77%	6.82%	42.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3389	46 Neutral	$532.89M	13.54	-1.15%	―	-41.44%	-209.76%
0256	43 Neutral	$913.90M	62.16	-7.92%	―	-18.07%	-1041.89%

Oriental Watch Holdings Corporate Events

Oriental Watch Holdings Announces 2025 AGM with Key Resolutions

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

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

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

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

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

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

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

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.