Ernest Borel Holdings Ltd (1856) AI Stock Analysis

• Market Cap: HK$659.27M
• Dividend Yield: N/A
• Average Volume (3M): 895.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: -20.65%
• EPS Growth: -616.18%
• Country: HK
• Employees: 542
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.06
• Shares Outstanding: 360,257,500
• 10 Day Avg. Volume: 653,300
• 30 Day Avg. Volume: 895,700
• PEG Ratio: 0.04
• Price to Book (P/B): 6.36
• Price to Sales (P/S): 6.53
• P/FCF Ratio: -19.81
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$2.00 ▲(6.38% Upside)
• Action: Upgraded Date: 11/28/25
• Date: Action: Upgraded 11/28/25

Ernest Borel Holdings Ltd's overall stock score is primarily impacted by its poor financial performance, with declining revenues and profitability, high leverage, and liquidity constraints. Technical analysis provides some short-term bullish signals, but the negative MACD and valuation concerns due to a negative P/E ratio and lack of dividend yield weigh heavily on the stock's attractiveness.

Positive Factors

Brand Heritage

The company's long-standing heritage and reputation for quality provide a strong brand foundation, supporting customer loyalty and premium pricing.

Market Presence

A focused market presence in the luxury watch sector allows the company to leverage its expertise and maintain a competitive edge in a niche market.

Distribution Channels

Diverse distribution channels, including online platforms, enhance market reach and adaptability to changing consumer purchasing behaviors.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in sustaining market demand, which could impact long-term growth and profitability.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Liquidity Constraints

Zero free cash flow suggests liquidity issues, which could hinder the company's ability to fund operations and invest in strategic initiatives.

Ernest Borel Holdings Ltd Business Overview & Revenue Model

Company Description

Ernest Borel Holdings Limited, an investment holding company, engages in the designing, manufacturing, marketing, and selling Swiss-made mechanical and quartz watches for men and women in the People's Republic of China, Hong Kong, Macau, Europe, and internationally. It also provides assembly and after-sales services. It sells its products under the Ernest Borel brand. The company was founded in 1856 and is headquartered in Mong Kok, Hong Kong. Ernest Borel Holdings Limited is a subsidiary of VGB Limited.

How the Company Makes Money

Ernest Borel Holdings Ltd generates revenue primarily through the sale of its luxury watches, which are distributed through various channels, including retail boutiques, authorized dealers, and online platforms. The company has established a strong brand presence, allowing it to command premium pricing for its products. Key revenue streams include direct sales from its own boutiques, wholesale distribution to retailers, and online sales, which have been increasingly important in the digital age. Additionally, Ernest Borel may engage in strategic partnerships with luxury retailers and participate in international watch exhibitions, further enhancing its market visibility and sales opportunities. The company's emphasis on craftsmanship and heritage also allows it to maintain a loyal customer base, contributing to recurring revenue through both new sales and repeat customers.

Ernest Borel Holdings Ltd Financial Statement Overview

Summary

Ernest Borel Holdings Ltd is facing significant financial challenges. The income statement shows declining revenues and negative profitability margins. The balance sheet indicates high leverage with a debt-to-equity ratio of 3.41 and negative ROE. Cash flow issues are evident with zero free and operating cash flow, suggesting liquidity constraints.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.22M	99.28M	164.99M	137.37M	149.25M	122.60M
Gross Profit	-4.56M	8.62M	87.06M	75.15M	90.83M	72.98M
EBITDA	-65.87M	-60.73M	51.02M	10.88M	-5.09M	13.84M
Net Income	-64.35M	-47.94M	18.87M	-12.07M	-31.82M	1.33M
Balance Sheet
Total Assets	550.74M	553.00M	656.00M	447.94M	467.38M	474.70M
Cash, Cash Equivalents and Short-Term Investments	25.55M	34.95M	38.32M	12.77M	7.58M	18.40M
Total Debt	374.55M	347.02M	342.29M	40.67M	296.49M	37.01M
Total Liabilities	456.79M	451.10M	488.21M	340.10M	354.61M	322.85M
Stockholders Equity	93.94M	101.91M	167.79M	107.84M	112.78M	151.84M
Cash Flow
Free Cash Flow	-45.24M	-32.74M	-12.99M	-4.15M	-4.01M	-27.80M
Operating Cash Flow	-40.23M	-27.27M	-9.55M	-1.66M	3.15M	-22.04M
Investing Cash Flow	-5.02M	-294.00K	8.95M	-3.24M	-5.74M	-5.72M
Financing Cash Flow	39.89M	32.14M	-262.00K	3.02M	-6.80M	25.84M

Ernest Borel Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.88
• 50DMA: Positive
• 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:1856, the sentiment is Neutral. The current price of 1.88 is below the 20-day moving average (MA) of 1.91, above the 50-day MA of 1.88, and above the 200-day MA of 1.57, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1856.

Ernest Borel Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0887	77 Outperform	HK$2.39B	4.06	5.10%	4.05%	6.60%	-14.32%
0590	73 Outperform	HK$15.89B	5.90	9.54%	4.43%	10.89%	2.02%
1929	64 Neutral	HK$116.12B	15.23	23.74%	4.21%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$8.81B	1.57	9.13%	4.60%	-10.41%	67.25%
0256	48 Neutral	HK$465.65M	-11.47	-7.92%	―	-18.07%	-1041.89%
1856	45 Neutral	HK$659.27M	-3.93	-51.81%	―	-20.65%	-616.18%

Ernest Borel Holdings Ltd Corporate Events

Ernest Borel Clarifies CEO Remuneration Across 2016–2024 in Supplemental Disclosure

Ernest Borel Holdings Limited has issued a supplemental announcement detailing the emoluments of three former chief executive officers, Mr. Su Da, Mr. Tao Li and Mr. He Wen, for the financial years from 2016 to 2024, in order to provide the level of disclosure required under the Hong Kong Listing Rules. The company has broken down their total remuneration by salary, allowances and benefits, voluntary salary waivers, retirement scheme contributions and bonuses for the relevant periods, clarifying that these figures relate solely to their roles as chief executive officers and confirming that all other information in the previously published annual reports remains unchanged, thereby addressing transparency and corporate governance requirements without altering its reported financials.

The most recent analyst rating on (HK:1856) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Ernest Borel Holdings Ltd stock, see the HK:1856 Stock Forecast page.

Ernest Borel Holdings Forms Nomination Committee to Strengthen Governance

Ernest Borel Holdings Limited has announced the establishment of a Nomination Committee as part of its governance structure. This committee, formed by a resolution of the Board of Directors, is tasked with overseeing the nomination process for board members, ensuring compliance with the Hong Kong Stock Exchange’s listing rules. The committee will consist of at least three members, primarily independent non-executive directors, and is empowered to seek independent professional advice to fulfill its responsibilities.

The most recent analyst rating on (HK:1856) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Ernest Borel Holdings Ltd stock, see the HK:1856 Stock Forecast page.