Emperor Watch & Jewellery (0887) AI Stock Analysis

• Market Cap: HK$3.92B
• Dividend Yield: 1.67%
• Average Volume (3M): 64.38M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.37
• Revenue Growth: 8.44%
• EPS Growth: -14.06%
• Country: HK
• Employees: 876
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Luxury Goods
• EPS (TTM): 0.04
• Shares Outstanding: 7,256,708,000
• 10 Day Avg. Volume: 71,164,208
• 30 Day Avg. Volume: 64,376,651
• PEG Ratio: -1.03
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.18
• 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: HK$0.47
• Price Target Upside: -12.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: HK$0.50 ▼(-7.41%Downside)

Emperor Watch & Jewellery's strong financial performance and solid technical indicators are major contributors to its high score. The reasonable valuation adds to the attractiveness, although there is room for improvement in profit margins and return on equity.

Emperor Watch & Jewellery Business Overview & Revenue Model

Company Description

Emperor Watch & Jewellery (0887) is a leading retailer in the luxury watch and fine jewelry sectors, primarily operating in Hong Kong, Macau, and Mainland China. The company specializes in offering a diverse range of high-end watches and premium jewelry pieces, catering to affluent consumers seeking prestigious and exclusive products. With a strong reputation for quality and service, Emperor Watch & Jewellery collaborates with renowned international brands to provide a curated selection of luxury items.

How the Company Makes Money

Emperor Watch & Jewellery generates revenue primarily through the sale of luxury watches and jewelry. The company operates a network of retail stores located in prime shopping districts, which attract both local consumers and tourists. Key revenue streams include direct sales of high-end watches from prestigious brands such as Rolex and Cartier, as well as custom-designed jewelry pieces. The company benefits from strategic partnerships with top watchmakers, providing them with exclusive distribution rights in certain regions. Additionally, Emperor Watch & Jewellery enhances its earnings through providing personalized customer service, including bespoke jewelry design, repair, and maintenance services, which adds value and encourages repeat business.

Emperor Watch & Jewellery Financial Statement Overview

Summary

Emperor Watch & Jewellery exhibits strong financial health characterized by consistent revenue growth, robust cash flow generation, and low leverage. However, slight pressure on net profit margins and modest return on equity indicate areas for potential improvement.

Income Statement

Emperor Watch & Jewellery demonstrated consistent revenue growth, with a 8.45% increase from 2023 to 2024. Their gross profit margin is stable at approximately 28.3%, and the net profit margin slightly decreased to 4.9% in 2024. EBIT and EBITDA margins remain healthy at 6.5% and 9.2%, respectively, reflecting efficient cost management. However, the slight decline in net profit margin from 6.2% in 2023 to 4.9% in 2024 indicates some pressure on net income.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 87.7% in 2024, indicating financial stability and low reliance on debt. The debt-to-equity ratio is low at 0.08, showcasing prudent financial management. Return on equity is modest at 4.9%, which suggests room for improving profitability using equity efficiently.

Cash Flow

Operating cash flow increased significantly to HKD 772 million in 2024, reflecting robust cash generation capabilities. Free cash flow also grew by 129.6%, indicating strong cash flow management. The operating cash flow to net income ratio is high at 3.01, suggesting efficient conversion of net income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.23B	4.82B	3.68B	3.93B	2.63B
Gross Profit	1.48B	1.45B	1.18B	1.23B	840.06M
EBITDA	760.00M	773.98M	637.98M	667.60M	452.04M
Net Income	256.74M	299.22M	222.13M	204.69M	33.99M
Balance Sheet
Total Assets	5.94B	5.71B	5.38B	5.35B	5.77B
Cash, Cash Equivalents and Short-Term Investments	949.82M	619.65M	664.39M	556.34M	405.11M
Total Debt	412.33M	304.63M	300.10M	416.91M	1.06B
Total Liabilities	728.26M	661.68M	536.77M	629.47M	1.22B
Stockholders Equity	5.21B	5.05B	4.85B	4.72B	4.55B
Cash Flow
Free Cash Flow	692.87M	301.69M	568.34M	939.27M	560.91M
Operating Cash Flow	769.08M	403.59M	605.58M	973.56M	576.84M
Investing Cash Flow	62.01M	-66.48M	-220.44M	-17.44M	10.02M
Financing Cash Flow	-375.06M	-344.38M	-466.27M	-808.60M	-427.26M

Emperor Watch & Jewellery Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0887, the sentiment is Positive. The current price of 0.54 is above the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.42, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0887.

Emperor Watch & Jewellery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	78 Outperform	$12.62B	11.48	8.44%	10.30%	-4.33%	-19.79%
0887	78 Outperform	HK$3.92B	13.72	4.99%	1.67%	8.44%	-14.06%
1929	76 Outperform	HK$138.90B	22.93	22.73%	2.84%	-17.53%	-8.90%
0116	75 Outperform	$5.63B	6.96	6.25%	8.59%	-15.34%	-20.36%
0398	72 Outperform	$1.64B	8.19	11.32%	0.79%	-7.42%	-17.86%
Sector *	56 Neutral	HK$25.22B	4.10	-2.03%	6.15%	-0.31%	-67.64%
0256	43 Neutral	$1.87B	62.16	-6.53%	―	-8.30%	-661.54%

Emperor Watch & Jewellery Corporate Events

Emperor Watch & Jewellery Updates Nomination Committee Terms

Emperor Watch & Jewellery Limited has amended and re-adopted the terms of reference for its Nomination Committee as of June 30, 2025. The committee, primarily composed of independent non-executive directors, is tasked with ensuring board diversity, assessing director independence, and advising on board composition to align with the company’s corporate strategy. This move is likely to enhance the company’s governance practices and ensure a diverse and effective board structure, potentially impacting its strategic direction and stakeholder confidence positively.

Emperor Watch & Jewellery Announces AGM Results and Board Changes

Emperor Watch & Jewellery Limited announced the successful results of its Annual General Meeting held on May 19, 2025, where all proposed resolutions were passed. These included the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting of general mandates to issue and buy back shares. Additionally, there were changes in the Independent Non-executive Directors and members of Board Committees, indicating a strategic shift in governance.

Emperor Watch & Jewellery Announces Board Composition and Roles

Emperor Watch & Jewellery Limited announced the composition of its board of directors and the roles within its board committees. The board includes both executive and independent non-executive directors, with Ms. Cindy Yeung serving as the Chairperson. The announcement provides clarity on the governance structure, which is crucial for stakeholders to understand the company’s leadership dynamics and decision-making processes.

Emperor Watch & Jewellery Reschedules Annual General Meeting

Emperor Watch & Jewellery Limited has announced a change in the date of its Annual General Meeting (AGM), originally scheduled for May 16, 2025, now rescheduled to May 19, 2025. This change also affects the deadline for lodging transfer forms, which is now set for May 13, 2025. The proxy forms previously sent to shareholders remain valid for the rescheduled meeting. This announcement ensures that shareholders are informed of the new schedule, maintaining transparency and facilitating their participation in the AGM.