Time Watch Investments Ltd. (2033) AI Stock Analysis

• Market Cap: HK$668.87M
• Dividend Yield: 2.15%
• Average Volume (3M): 60.80K
• Price to Earnings (P/E): 59.1
• Beta (1Y): 0.10
• Revenue Growth: -16.46%
• EPS Growth: -87.89%
• Country: HK
• Employees: 2,800
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): <0.01
• Shares Outstanding: 2,058,068,000
• 10 Day Avg. Volume: 71,000
• 30 Day Avg. Volume: 60,800
• PEG Ratio: 1.41
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.41
• 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

• Rating: 56 Neutral
• Price Target: HK$0.50 ▲(56.25%Upside)

Time Watch Investments Ltd. scores moderately due to its strong financial stability, yet faces challenges with revenue growth and profitability. The technical analysis shows mixed indicators, suggesting neutral momentum. The high P/E ratio indicates potential overvaluation, but the attractive dividend yield provides some compensation for investors.

Time Watch Investments Ltd. Business Overview & Revenue Model

Company Description

Time Watch Investments Limited, an investment holding company, operates as a manufacturer, brand-owner, and retailer of watches in the People's Republic of China. The company operates through four segments: Tian Wang Watch Business, Balco Watch Business, Watch Movements Trading Business, and Other Brands (PRC) Business. It designs, manufactures, wholesales, and retails watches under the Tian Wang and Balco brand names. In addition, the company trades in watch movements to other watch manufacturers and distributors; distributes owned and licensed international watch brands; and provides marketing and consulting services. Further, it is involved in the property investment business. As of June 30, 2021, the company operated 2,206 point of sales stores. The company was founded in 1988 and is headquartered in Kowloon, Hong Kong. Time Watch Investments Limited is a subsidiary of Red Glory Investments Limited.

How the Company Makes Money

Time Watch Investments Ltd. generates revenue through multiple streams, primarily stemming from the sale of its diverse range of wristwatches. The company operates a vertically integrated business model, managing its entire value chain from design and manufacturing to marketing and retail. This allows Time Watch Investments Ltd. to maintain quality control and maximize margins. Revenue is further bolstered by strategic partnerships with renowned fashion designers and technology firms, enabling the creation of exclusive, co-branded collections that attract a premium price point. Additionally, the company benefits from licensing agreements, where its brands are used on a range of fashion accessories, expanding its market reach. A significant portion of its earnings also comes from e-commerce sales, as the company has invested in digital platforms to cater to the growing online shopping trend.

Time Watch Investments Ltd. Financial Statement Overview

Summary

Time Watch Investments Ltd. shows solid financial stability with low leverage and strong cash positions. However, the company faces challenges in revenue growth and profitability, as evidenced by declining sales and modest net profit margins. Continued focus on improving operational efficiency and revenue growth is needed.

Income Statement

The income statement shows a declining revenue trend over recent years, with a revenue decrease from HKD 981.76M in 2023 to HKD 881.04M in 2024. Gross profit margin remains relatively strong at approximately 72.78% for 2024, but the company has struggled with profitability, as indicated by a negative EBIT margin. The net profit margin is modest at 3.82% for 2024, indicating some profitability challenges.

Balance Sheet

The balance sheet is strong with a significant equity base, reflected in an equity ratio of approximately 91.09% in 2024. Debt levels are low, leading to a favorable debt-to-equity ratio of 0.01. The company maintains a solid cash position, which supports financial flexibility and stability.

Cash Flow

The cash flow statement indicates a positive free cash flow growth rate, moving from HKD 33.79M in 2023 to HKD 149.59M in 2024. Operating cash flow is also strong relative to net income, with an operating cash flow to net income ratio of 5.58 in 2024. However, the free cash flow to net income ratio of 4.45 suggests that while cash flow generation is strong, earnings growth needs to be aligned.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
792.03M	881.04M	981.76M	1.41B	1.92B	1.73B
	Gross Profit
576.96M	641.15M	721.00M	1.02B	1.45B	1.27B
	EBIT
-51.90M	-5.42M	-2.43M	-3.75M	257.14M	154.86M
	EBITDA
18.12M	97.51M	108.82M	114.18M	457.01M	281.17M
	Net Income Common Stockholders
11.24M	33.64M	37.07M	33.02M	259.10M	140.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.03B	1.15B	1.18B	991.49M	1.07B	717.46M
	Total Assets
2.47B	2.54B	2.62B	2.94B	3.08B	2.50B
	Total Debt
23.26M	27.46M	32.63M	43.36M	63.97M	29.73M
	Net Debt
-838.68M	-931.77M	-759.57M	-797.14M	-190.88M	-663.91M
	Total Liabilities
206.95M	224.71M	232.00M	325.75M	444.00M	302.92M
	Stockholders Equity
2.27B	2.31B	2.39B	2.58B	2.60B	2.17B
Cash Flow		Free Cash Flow
112.56M	140.54M	33.79M	85.53M	284.99M	207.82M
	Operating Cash Flow
151.00M	178.78M	107.61M	175.50M	427.74M	316.89M
	Investing Cash Flow
-169.62M	82.16M	-21.08M	481.84M	-869.11M	140.42M
	Financing Cash Flow
-43.44M	-89.55M	-122.08M	-60.71M	-27.69M	-158.22M

Time Watch Investments Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2033, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.33, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.40 is Neutral, neither overbought nor oversold. The STOCH value of 13.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2033.

Time Watch Investments Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2683	78 Outperform	HK$298.30M	8.63	12.85%	21.92%	14.78%	56.67%
Sector *	62 Neutral	$6.76B	11.06	2.80%	6.66%	2.68%	-24.89%
1100	60 Neutral	HK$575.08M	10.08	5.12%	7.46%	3.91%	-51.72%
1023	58 Neutral	HK$481.35M	5.10	-1.08%	12.00%	-4.68%	-112.44%
2033	56 Neutral	HK$668.87M	59.09	0.49%	2.15%	-16.46%	-87.89%
DPNEF		$105.86M	3.00		11.61%	―	―
0676	49 Neutral	HK$737.96M	261.76	-1.37%	0.99%	-3.15%	-330.61%

Time Watch Investments Ltd. Corporate Events

Time Watch Investments Ltd. Reports Revenue Decline and Loss for 1H FY2025

Time Watch Investments Ltd. reported a significant decline in revenue and profitability for the first half of fiscal year 2025, with revenue dropping by approximately HK$89 million compared to the same period in the previous year. The company experienced a loss of HK$10.9 million, a stark contrast to the HK$11.5 million profit recorded in the first half of fiscal year 2024. The board did not recommend an interim dividend, reflecting the challenging financial performance. This downturn may impact the company’s market positioning and stakeholder confidence.