Emperor Watch & Jewellery (0887) AI Stock Analysis

• Market Cap: $2.87B
• Dividend Yield: 2.75%
• Average Volume (3M): 50.77M
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.38
• Revenue Growth: 8.44%
• EPS Growth: -14.06%
• Country: HK
• Employees: 876
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Luxury Goods
• EPS (TTM): 0.04
• Shares Outstanding: 7,256,708,000
• 10 Day Avg. Volume: 19,219,696
• 30 Day Avg. Volume: 50,766,871
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.21
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.40
• Enterprise Value/Ebitda: 0.95
• 1Y Price Target: $0.47
• Price Target Upside: 17.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: HK$0.50 ▲(25.00% Upside)

The overall stock score for Emperor Watch & Jewellery is driven primarily by its strong financial performance characterized by consistent revenue growth and robust cash flow generation. However, bearish technical indicators and modest valuation metrics slightly offset these strengths. The absence of earnings call data and notable corporate events did not impact the score.

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. As of December 31, 2021, the company operated 99 stores in Hong Kong, Macau, Mainland China, Singapore, and Malaysia. It sells its products through self-branded stores, watch boutiques, and multi-brand watch stores, as well as through an online shopping platform. The company was founded in 1942 and is based in Wanchai, Hong Kong. Emperor Watch & Jewellery Limited is a subsidiary of Emperor Watch & Jewellery Group Holdings Limited.

How the Company Makes Money

Emperor Watch & Jewellery generates revenue primarily through the retail sale of luxury watches and jewelry. The company's key revenue streams include direct sales from its extensive network of retail outlets, which are strategically located in prime shopping districts to attract affluent clientele. Additionally, the company benefits from its partnerships with renowned watchmakers and jewelry designers, enabling it to offer exclusive and sought-after products. This exclusivity and brand prestige allow Emperor Watch & Jewellery to maintain high profit margins. Furthermore, the company may engage in marketing and promotional activities to enhance brand visibility and drive sales, contributing to its overall earnings.

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: Neutral
• Last Price: 0.40
• 50DMA: Negative
• 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:0887, the sentiment is Neutral. The current price of 0.4 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.47, and above the 200-day MA of 0.26, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0887.

Emperor Watch & Jewellery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0887	65 Neutral	$2.87B	10.42	4.99%	2.75%	8.44%	-14.06%
Sector *	62 Neutral	C$4.64B	8.13	17.93%	3.89%	2.62%	-2.19%
CEBTF	―	$213.44M	65.56	-6.53%	―	―	―
CHOWF	―	$730.77M	7.86	6.25%	10.78%	―	―
CJEWF	―	$16.49B	22.17	22.73%	3.85%	―	―
LKFLF	―	$1.57B	10.56	8.44%	5.69%	―	―
ORWHF	―	$209.85M	9.66	11.32%	31.88%	―	―

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.