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Ernest Borel Holdings Ltd
(1856)
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Rating:41Neutral
Price Target:
HK$1.00
▼(-46.81% Downside)
Action:Reiterated
Date:06/26/26
The score is driven primarily by very weak financial performance, including steep profitability deterioration, high leverage (debt-to-equity ~6.8x), and persistent negative free cash flow. Technical indicators also point to a sustained downtrend with bearish momentum. Valuation is not supportive given negative earnings (negative P/E) and no indicated dividend yield.
Positive Factors
Heritage brand recognition
Ernest Borel's heritage as a recognized watch brand supports durable pricing power, distribution relationships and customer recall in the luxury segment. Brand equity can help sustain market position and enable recovery even if near-term sales and margins are weak.
Negative Factors
Severe margin deterioration
A collapse from ~53% to ~4% gross margin and a ~-66% net margin indicates deep structural issues—pricing pressure, cost inflation, or major write-downs. Such extreme margin erosion materially weakens long-term cash generation, undermining the firm's ability to reinvest and sustain brand positioning.
Read all positive and negative factors
Positive Factors
Negative Factors
Heritage brand recognition
Ernest Borel's heritage as a recognized watch brand supports durable pricing power, distribution relationships and customer recall in the luxury segment. Brand equity can help sustain market position and enable recovery even if near-term sales and margins are weak.
Read all positive factors
Ernest Borel Holdings Ltd (1856) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$464.73M
Dividend YieldN/A
Average Volume (3M)895.70K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth-20.08%
EPS Growth-9.47%
CountryHK
Employees307
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)-0.15
Shares Outstanding360,257,500
10 Day Avg. Volume653,300
30 Day Avg. Volume895,700
Financial Highlights & Ratios
PEG Ratio-0.81
Price to Book (P/B)11.54
Price to Sales (P/S)8.54
P/FCF Ratio-24.24
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Ernest Borel Holdings Ltd Business Overview & Revenue Model
Company Description
Ernest Borel Holdings Limited operates as an investment holding company, primarily focusing on the design, production, promotion, and worldwide distribution of Swiss-made mechanical and quartz watches for both male and female clientele. Its produc...
How the Company Makes Money
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Ernest Borel Holdings Ltd Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
22
Negative
Cash Flow
16
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 79.34M | 99.28M | 164.99M | 137.37M | 149.25M |
| Gross Profit | 3.27M | 8.62M | 87.06M | 75.15M | 90.83M |
| EBITDA | -49.21M | -60.73M | 51.02M | 10.88M | -5.09M |
| Net Income | -52.48M | -47.94M | 18.87M | -12.07M | -31.82M |
Balance Sheet | |||||
| Total Assets | 518.78M | 553.00M | 656.00M | 447.94M | 467.38M |
| Cash, Cash Equivalents and Short-Term Investments | 44.19M | 34.95M | 38.32M | 12.77M | 7.58M |
| Total Debt | 36.96M | 347.02M | 342.29M | 40.67M | 296.49M |
| Total Liabilities | 460.07M | 451.10M | 488.21M | 340.10M | 354.61M |
| Stockholders Equity | 58.71M | 101.91M | 167.79M | 107.84M | 112.78M |
Cash Flow | |||||
| Free Cash Flow | -27.94M | -32.74M | -12.99M | -4.15M | -4.01M |
| Operating Cash Flow | -23.19M | -27.27M | -9.55M | -1.66M | 3.15M |
| Investing Cash Flow | -24.89M | -294.00K | 8.95M | -3.24M | -5.74M |
| Financing Cash Flow | 46.77M | 32.14M | -262.00K | 3.02M | -6.80M |
Ernest Borel Holdings Ltd Technical Analysis
Negative
1.88
Price Trends
1.57
Negative
1.68
Negative
1.75
Negative
Market Momentum
-0.08
Negative
37.70
Neutral
71.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1856, the sentiment is Negative. The current price of 1.88 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.57, and above the 200-day MA of 1.75, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1856.
Ernest Borel Holdings Ltd Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$1.85B | 4.02 | 5.10% | 4.05% | 10.23% | 66.75% | |
70 Outperform | HK$1.60B | 8.89 | 10.00% | 9.67% | -0.78% | -10.18% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | HK$1.12B | -36.18 | -0.87% | ― | -37.78% | 57.76% | |
50 Neutral | HK$426.49M | -2.00 | -7.92% | ― | -17.82% | 16.27% | |
41 Neutral | HK$464.73M | -8.85 | -68.76% | ― | -20.08% | -9.47% | |
| ― | HK$60.44M | -0.31 | ― | ― | ― | ― |
* Consumer Cyclical Sector Average
HK:1856
Ernest Borel Holdings Ltd
1.29
0.07
5.74%
HK:0256
Citychamp Watch & Jewellery Group
0.10
-0.32
-76.39%
HK:0887
Emperor Watch & Jewellery
0.26
-0.17
-40.56%
HK:3389
Hengdeli Holdings
0.26
0.13
96.15%
HK:0398
Oriental Watch Holdings
3.29
0.28
9.27%
HK:0444
Sincere Watch (Hong Kong)
0.01
0.00
0.00%
Ernest Borel Holdings Ltd Corporate Events
Ernest Borel Shareholders Unanimously Back AGM Resolutions and Capital Mandates
Jun 23, 2026
Ernest Borel Holdings Limited reported that all resolutions at its 23 June 2026 annual general meeting were approved by shareholders through a poll, covering adoption of the 2025 audited financial statements, re-election of directors and authoriza...
Ernest Borel Sets 2026 AGM to Renew Share Issuance and Buy-back Mandates
May 22, 2026
Ernest Borel Holdings Limited has called its annual general meeting for 23 June 2026 in Hong Kong to present its audited consolidated financial statements for the year ended 31 December 2025 and to consider standard governance matters. Shareholder...
Ernest Borel Adjusts Gold Vantage Acquisition Price After Profit Guarantee Shortfall
Apr 30, 2026
Ernest Borel Holdings Limited has clarified the outcome of a profit guarantee tied to its acquisition of Gold Vantage Group, for which the vendor had guaranteed at least HK$30 million in net profit after tax for each of the financial years 2023 to...
Ernest Borel’s 2025 Loss Widens as Revenue and Margins Slide
Mar 30, 2026
Ernest Borel Holdings Limited reported a sharp deterioration in its 2025 financial performance, with turnover falling about 20% year on year to HK$79.3 million and gross profit margin halving to 4.1%, dragging gross profit down to HK$3.3 million. ...
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.