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Emperor Watch & Jewellery Limited (HK:0887)
:0887
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Emperor Watch & Jewellery (0887) AI Stock Analysis

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HK:0887

Emperor Watch & Jewellery

(0887)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
HK$0.37
▲(58.70% Upside)
Action:ReiteratedDate:04/21/26
The score is driven primarily by strong financial health (low leverage, improving profitability, solid cash generation) and very attractive valuation (low P/E with a dividend). These positives are tempered by only neutral-to-soft technical signals, indicating limited near-term momentum.
Positive Factors
Conservative balance sheet
Debt-to-equity near 0.07 signals very low leverage, providing durable financial flexibility. Low debt reduces refinancing and interest risk, supports dividend and capex through cycles, and gives capacity for opportunistic investments or buybacks without stressing liquidity over the next several quarters.
Negative Factors
Demand cyclicality
Luxury retail exposure has produced volatile revenue across cycles (notable 2020 drop and 2022 contraction). This structural sensitivity to consumer spending can produce earnings swings, complicate inventory and workforce planning, and limit visibility for 2–6 month strategic decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Debt-to-equity near 0.07 signals very low leverage, providing durable financial flexibility. Low debt reduces refinancing and interest risk, supports dividend and capex through cycles, and gives capacity for opportunistic investments or buybacks without stressing liquidity over the next several quarters.
Read all positive factors

Emperor Watch & Jewellery (0887) vs. iShares MSCI Hong Kong ETF (EWH)

Emperor Watch & Jewellery Business Overview & Revenue Model

Company Description
Emperor Watch & Jewellery Limited, an investment holding company, engages in the sale of watches and jewelry products. It is involved in retailing European-made watches and self-designed fine jewelry products under the Emperor Jewellery brand name...
How the Company Makes Money
The company makes money primarily by selling watches and jewellery to end customers and recognizing revenue at the point of sale (or upon delivery/acceptance, depending on the sales arrangement). Key revenue streams include (1) retail sales of wat...

Emperor Watch & Jewellery Financial Statement Overview

Summary
Financials are solid and improving: profitability strengthened in 2025 (net margin ~8% vs ~4.9% in 2024), the balance sheet is conservative with very low leverage (debt-to-equity ~0.07), and cash generation is strong with high earnings quality (FCF ~88% of net income). The main constraint is historical cyclicality and some cash-flow volatility (notably weaker cash conversion in 2023).
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
80
Positive
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.77B5.23B4.82B3.68B3.93B
Gross Profit1.78B1.48B1.45B1.18B1.23B
EBITDA1.01B760.00M773.98M637.98M667.60M
Net Income458.44M256.74M299.22M222.13M204.69M
Balance Sheet
Total Assets6.92B5.94B5.71B5.38B5.35B
Cash, Cash Equivalents and Short-Term Investments1.81B949.82M619.65M664.39M556.34M
Total Debt405.73M412.33M304.63M300.10M416.91M
Total Liabilities1.03B728.26M661.68M536.77M629.47M
Stockholders Equity5.62B5.21B5.05B4.85B4.72B
Cash Flow
Free Cash Flow967.17M692.87M301.69M568.34M939.27M
Operating Cash Flow1.10B769.08M403.59M605.58M973.56M
Investing Cash Flow-278.25M62.01M-66.48M-220.44M-17.44M
Financing Cash Flow-258.88M-375.06M-344.38M-466.27M-808.60M

Emperor Watch & Jewellery Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.23
Price Trends
50DMA
0.33
Negative
100DMA
0.29
Positive
200DMA
0.32
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
51.81
Neutral
STOCH
70.00
Neutral
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 0.23 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.33, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.81 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$2.29B3.615.10%4.05%10.23%66.75%
73
Outperform
HK$13.37B5.909.57%4.43%10.89%2.02%
70
Outperform
HK$1.60B4.0610.00%9.67%-9.00%-21.55%
64
Neutral
HK$107.63B15.2323.29%4.21%-9.49%32.56%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
HK$748.68M-20.98-1.15%-37.78%57.76%
48
Neutral
HK$348.15M-1.28-7.92%-17.82%16.27%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0887
Emperor Watch & Jewellery
0.33
0.12
59.42%
HK:0256
Citychamp Watch & Jewellery Group
0.08
-0.39
-82.80%
HK:1929
Chow Tai Fook Jewellery Group
11.03
2.01
22.24%
HK:3389
Hengdeli Holdings
0.18
0.08
89.47%
HK:0590
Luk Fook Holdings (International)
22.82
6.86
43.02%
HK:0398
Oriental Watch Holdings
3.27
0.14
4.54%

Emperor Watch & Jewellery Corporate Events

Emperor Watch & Jewellery Sets 2026 AGM to Approve Dividend and Capital Mandates
Apr 16, 2026
Emperor Watch Jewellery has called its annual general meeting for 18 May 2026 in Hong Kong, where shareholders will vote on the adoption of the 2025 audited financial statements, the declaration of a final dividend, the re-election of two directo...
Emperor Watch & Jewellery Updates Final Dividend Schedule for 2025
Mar 26, 2026
Emperor Watch Jewellery has declared a final ordinary dividend of HKD 0.0114 per share for the financial year ended 31 December 2025, with shareholder approval scheduled for 18 May 2026. The company has updated the ex-dividend date to 22 May 2026...
Emperor Watch & Jewellery Proposes Final Dividend for 2025
Mar 25, 2026
Emperor Watch Jewellery Limited has proposed a final ordinary cash dividend of HKD 0.0114 per share for the financial year ended 31 December 2025. The payout, subject to shareholder approval on 18 May 2026, underscores the group’s continued...
Emperor Watch & Jewellery Profit Jumps 68% on Robust Luxury Demand
Mar 25, 2026
Emperor Watch Jewellery reported a strong set of 2025 results, with total revenue rising 10.2% to HK$5.77 billion and net profit surging 67.7% to HK$431 million despite a challenging macro backdrop. Gross profit climbed 20.2% and margin improved ...
Emperor Watch & Jewellery Sets March Board Meeting for 2025 Results and Dividend Decision
Mar 13, 2026
Emperor Watch Jewellery has scheduled a board meeting for 25 March 2026 to approve the group’s annual results for the year ended 31 December 2025. The board will also discuss whether to recommend a final dividend, a decision that will be cl...
Emperor Watch & Jewellery Forecasts Over 60% Profit Surge for 2025
Jan 27, 2026
Emperor Watch Jewellery has issued a positive profit alert, indicating it expects to report net profit of at least HK$420 million for the year ended 31 December 2025, up more than 60% from HK$257 million a year earlier. The improvement is attribu...
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: Apr 21, 2026