Oriental Watch Holdings (0398) AI Stock Analysis

• Market Cap: HK$1.73B
• Dividend Yield: 9.83%
• Average Volume (3M): 570.37K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.22
• Revenue Growth: -9.00%
• EPS Growth: -21.55%
• Country: HK
• Employees: 609
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.21
• Shares Outstanding: 487,358,220
• 10 Day Avg. Volume: 770,300
• 30 Day Avg. Volume: 570,368
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$4.00 ▲(11.73% 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, 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 generates revenue primarily through the retail and wholesale of luxury watches. The company's key revenue streams include direct sales from its retail stores, online sales, and wholesale distribution to other retailers. Additionally, after-sales services, such as watch repairs and maintenance, contribute to its income. The company benefits from partnerships with leading luxury watch brands, enabling it to offer a diverse range of products. Seasonal promotions, exclusive launches, and strong customer loyalty programs also play significant roles in driving sales and enhancing its market presence.

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	3.27B	3.45B	3.64B	3.70B	3.64B	3.50B
Gross Profit	967.35M	1.09B	1.15B	1.05B	1.05B	850.00M
EBITDA	377.29M	507.87M	522.97M	587.15M	675.67M	458.85M
Net Income	181.88M	200.50M	250.49M	295.43M	362.57M	233.26M
Balance Sheet
Total Assets	2.43B	2.24B	2.39B	2.62B	2.88B	2.73B
Cash, Cash Equivalents and Short-Term Investments	989.88M	847.89M	910.86M	1.09B	1.29B	1.07B
Total Debt	222.29M	195.26M	266.43M	352.12M	470.12M	368.89M
Total Liabilities	629.79M	488.73M	591.51M	723.33M	843.11M	736.98M
Stockholders Equity	1.80B	1.75B	1.79B	1.89B	2.04B	1.99B
Cash Flow
Free Cash Flow	211.92M	263.44M	293.50M	399.52M	679.29M	630.37M
Operating Cash Flow	244.60M	288.09M	346.99M	446.49M	752.12M	660.35M
Investing Cash Flow	656.00K	24.07M	-67.84M	-61.71M	-97.64M	-65.01M
Financing Cash Flow	-350.14M	-363.95M	-423.46M	-530.65M	-457.74M	-497.71M

Oriental Watch Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 3.58 is above the 20-day moving average (MA) of 3.51, above the 50-day MA of 3.45, and above the 200-day MA of 3.37, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 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	73 Outperform	HK$463.75M	5.10	11.34%	6.00%	14.52%	15.74%
0113	72 Outperform	$2.23B	10.32	5.92%	7.67%	-7.48%	-16.11%
0398	70 Outperform	HK$1.73B	9.51	10.00%	9.83%	-9.00%	-21.55%
0887	69 Neutral	$1.79B	6.55	5.10%	4.05%	6.82%	42.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3389	55 Neutral	HK$616.56M	-15.44	-1.15%	―	-41.44%	-209.76%
0256	48 Neutral	HK$1.00B	-3.26	-7.92%	―	-18.07%	-1041.89%

Oriental Watch Holdings Corporate Events

Oriental Watch Holdings Reports Decline in Interim Revenue and Profit

Oriental Watch Holdings Limited reported its unaudited consolidated results for the six months ending September 30, 2025, showing a decrease in revenue to HK$1,618,471,000 from HK$1,800,461,000 in the previous year. Despite the revenue drop, the company managed to achieve a gross profit of HK$487,638,000, supported by other income and gains. The profit for the period was HK$100,773,000, down from HK$119,384,000, reflecting challenges in the market. The comprehensive income for the period also saw a decline, indicating a need for strategic adjustments to maintain industry positioning and stakeholder confidence.

Oriental Watch Holdings Declares Interim Dividend for 2025

Oriental Watch Holdings Limited has announced an interim cash dividend of HKD 0.053 per share for the six months ending 30 September 2025, with the payment scheduled for 28 January 2026. This announcement reflects the company’s stable financial performance and commitment to returning value to shareholders, potentially enhancing its attractiveness to investors and reinforcing its position in the luxury watch market.

Oriental Watch Holdings Declares Special Dividend

Oriental Watch Holdings Limited has declared a special dividend of HKD 0.155 per share for the six months ending 30 September 2025. This announcement reflects the company’s strong financial performance and commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Oriental Watch Holdings Announces Board Meeting for Interim Results

Oriental Watch Holdings Limited has announced that its board of directors will meet on November 19, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the declaration of an interim dividend. This meeting is a significant event for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.