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Ernest Borel Holdings Ltd (HK:1856)
:1856
Hong Kong Market
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Ernest Borel Holdings Ltd (1856) AI Stock Analysis

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HK

Ernest Borel Holdings Ltd

(1856)

Rating:43Neutral
Price Target:
HK$1.00
▼(-18.03%Downside)
The overall stock score for Ernest Borel Holdings Ltd is primarily impacted by its poor financial performance, characterized by declining revenues, profitability, and liquidity issues. Technical analysis shows mixed signals, with a bearish long-term trend. The valuation is unattractive due to a negative P/E ratio and lack of dividends.

Ernest Borel Holdings Ltd (1856) vs. iShares MSCI Hong Kong ETF (EWH)

Ernest Borel Holdings Ltd Business Overview & Revenue Model

Company DescriptionErnest Borel Holdings Ltd, founded in 1856, is a renowned Swiss watchmaking company known for its precision and craftsmanship. The company operates within the luxury goods sector, specializing in the design, manufacture, and distribution of high-quality timepieces. Ernest Borel's core products include a wide range of wristwatches that cater to both men and women, characterized by their elegant design and reliable performance.
How the Company Makes MoneyErnest Borel Holdings Ltd generates revenue primarily through the sale of its luxury wristwatches. The company's key revenue streams include direct sales through its branded retail outlets and an extensive network of authorized dealers and distributors worldwide. Additionally, Ernest Borel engages in strategic partnerships and collaborations to expand its market reach and enhance brand visibility. The company also participates in international watch exhibitions and fairs to showcase its latest collections and attract potential buyers. Significant factors contributing to its earnings include its strong brand heritage, commitment to quality, and a focus on innovative design that appeals to a broad demographic of luxury watch consumers.

Ernest Borel Holdings Ltd Financial Statement Overview

Summary
Ernest Borel Holdings Ltd is facing significant financial challenges. The income statement shows declining revenue and negative margins, the balance sheet indicates high leverage with a negative ROE, and cash flow is constrained with zero free and operating cash flow. These factors highlight potential financial instability.
Income Statement
35
Negative
Ernest Borel Holdings Ltd shows a decline in total revenue from the previous year, with a significant decrease from HK$164.99M to HK$99.28M. The gross profit margin stands at 8.7%, reflecting a steep decrease in profitability. The company has experienced negative EBIT and EBITDA margins, indicating operational inefficiencies. Net profit margin is also negative, further emphasizing financial distress.
Balance Sheet
45
Neutral
The balance sheet shows a high debt-to-equity ratio of approximately 3.41, indicating substantial leverage risk. Stockholders' equity has decreased, and the ROE is negative due to losses. However, the company maintains a reasonable equity ratio of 18.4%, suggesting some stability in its asset base.
Cash Flow
30
Negative
The cash flow statement reveals a concerning zero free cash flow, indicating challenges in generating cash. The operating cash flow is also zero, reflecting potential issues in cash conversion from operations. The absence of positive cash flow metrics suggests liquidity constraints.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue99.28M164.99M137.37M149.25M122.60M
Gross Profit8.62M87.06M75.15M90.83M72.98M
EBITDA-60.73M51.02M10.88M-5.09M11.03M
Net Income-47.94M18.87M-12.07M-31.82M1.33M
Balance Sheet
Total Assets553.00M656.00M447.94M467.38M474.70M
Cash, Cash Equivalents and Short-Term Investments36.72M38.32M6.27M7.58M18.40M
Total Debt347.02M56.31M40.67M29.24M37.01M
Total Liabilities451.10M488.21M340.10M354.61M322.85M
Stockholders Equity101.91M167.79M107.84M112.78M151.84M
Cash Flow
Free Cash Flow-32.74M-12.99M-4.15M-4.01M-27.80M
Operating Cash Flow-27.27M-9.55M-1.66M3.15M-22.04M
Investing Cash Flow-294.00K8.95M-3.24M-5.74M-5.72M
Financing Cash Flow32.14M-262.00K3.02M-6.80M25.84M

Ernest Borel Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.22
Price Trends
50DMA
1.08
Positive
100DMA
1.08
Positive
200DMA
1.33
Negative
Market Momentum
MACD
0.01
Negative
RSI
70.25
Negative
STOCH
71.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1856, the sentiment is Positive. The current price of 1.22 is above the 20-day moving average (MA) of 0.99, above the 50-day MA of 1.08, and below the 200-day MA of 1.33, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 70.25 is Negative, neither overbought nor oversold. The STOCH value of 71.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1856.

Ernest Borel Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$12.45B11.328.44%10.19%-4.33%-19.79%
78
Outperform
HK$3.92B13.724.99%1.67%8.44%-14.06%
76
Outperform
$139.10B23.8122.73%2.84%-17.53%-8.90%
75
Outperform
HK$5.63B6.966.25%8.59%-15.34%-20.36%
56
Neutral
HK$25.22B4.10-2.03%6.15%-0.31%-67.64%
43
Neutral
HK$439.51M35.26-35.55%-39.83%-351.13%
43
Neutral
$1.87B62.16-6.53%-8.30%-661.54%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1856
Ernest Borel Holdings Ltd
1.23
-0.32
-20.65%
HK:0590
Luk Fook Holdings (International)
21.35
7.42
53.28%
HK:0887
Emperor Watch & Jewellery
0.49
0.34
228.86%
HK:0256
Citychamp Watch & Jewellery Group
0.43
-0.53
-55.21%
HK:1929
Chow Tai Fook Jewellery Group
13.58
6.10
81.60%
HK:0116
Chow Sang Sang Holdings International
8.33
1.87
28.97%

Ernest Borel Holdings Ltd Corporate Events

Ernest Borel Holdings Ltd Successfully Passes All AGM Resolutions
May 29, 2025

Ernest Borel Holdings Ltd announced that all resolutions proposed at their Annual General Meeting held on May 29, 2025, were passed by shareholders. These resolutions included the adoption of financial statements, re-election and appointment of directors, and granting mandates for share issuance and buyback, reflecting strong shareholder support and potentially enhancing the company’s governance and operational flexibility.

Ernest Borel Holdings Ltd Announces Board Composition
May 29, 2025

Ernest Borel Holdings Ltd has announced the composition of its board of directors, detailing the roles and functions of its executive, non-executive, and independent non-executive directors. This announcement is crucial for stakeholders as it outlines the leadership structure and governance, potentially impacting the company’s strategic direction and operational efficiency.

Ernest Borel Faces Profit Guarantee Shortfall, Completes Compensation Settlement
Apr 30, 2025

Ernest Borel Holdings Limited announced an update regarding the fulfillment of a profit guarantee related to its acquisition of Gold Vantage Group. The company faced a significant shortfall in the expected profit for the year ending December 2024, resulting in a required compensation of approximately HK$70.6 million from the vendor. The settlement of this compensation involved a reduction in share consideration and deductions from cash considerations, with all arrangements completed by March 2025.

Ernest Borel Holdings Announces Board and Representative Changes
Apr 30, 2025

Ernest Borel Holdings Ltd, a company incorporated in the Cayman Islands, has announced significant changes to its board of directors and authorized representatives. Ms. Lam Lai will retire as an executive director and authorized representative, and Ms. Chan Lai Wa will retire as an independent non-executive director. New appointments include Mr. Ng as an independent non-executive director, Mr. Kong Le as an executive director, Ms. Hong Ting as an independent non-executive director, and Mr. Teguh Halim as an authorized representative, all subject to shareholder approval at the 2025 AGM. These changes are part of the company’s ongoing efforts to align with regulatory requirements and ensure effective governance.

Ernest Borel Holdings to Hold AGM, Propose Key Resolutions
Apr 30, 2025

Ernest Borel Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 29, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the 2024 financial statements, the re-election and appointment of directors, and the authorization of the board to set directors’ remuneration. Additionally, the company seeks approval to allot and issue new shares, with limitations, to enhance its capital structure.

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: Jul 15, 2025