Time Watch Investments Ltd. (2033) AI Stock Analysis

• Market Cap: HK$740.90M
• Dividend Yield: 1.94%
• Average Volume (3M): 197.29K
• Price to Earnings (P/E): 65.5
• Beta (1Y): 0.09
• Revenue Growth: -16.46%
• EPS Growth: -87.89%
• Country: HK
• Employees: 2,800
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): >-0.01
• Shares Outstanding: 2,058,068,000
• 10 Day Avg. Volume: 297,600
• 30 Day Avg. Volume: 197,286
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 38.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(38.89% Upside)

Time Watch Investments Ltd. is facing significant challenges in financial performance, particularly in revenue growth and profitability, which is reflected in its stock valuation. Technical indicators suggest neutral momentum. The high P/E ratio implies potential overvaluation, while a reasonable dividend yield provides some investment return.

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. The primary source of income is the sale of watches, which includes a wide range of products from luxury mechanical watches to affordable smartwatches. The company also earns significant revenue through its global retail network, comprising both owned stores and authorized dealers. In addition, Time Watch Investments benefits from strategic partnerships with technology firms to enhance its smart watch offerings, as well as collaborations with fashion brands to create exclusive collections. The company also explores licensing agreements and brand collaborations to further expand its market reach and revenue base.

Time Watch Investments Ltd. Financial Statement Overview

Summary

Time Watch Investments Ltd. faces challenges in revenue growth and profitability, with declining sales and negative EBIT. However, the balance sheet indicates financial stability with low leverage and high equity. Cash flow is positive, though inconsistent free cash flow growth suggests potential liquidity risks.

Income Statement

The company's revenue has been declining over the past few years, with a significant drop from 2020 to 2024. Gross profit margins have remained relatively stable, but the company has been struggling with negative EBIT, indicating operational inefficiencies. Net profit margins are low, reflecting challenges in maintaining profitability.

Balance Sheet

The balance sheet shows a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage. However, the return on equity has been declining, reflecting reduced profitability.

Cash Flow

Operating cash flow remains positive, but free cash flow growth has been inconsistent. The company has managed to maintain a healthy operating cash flow to net income ratio, indicating good cash generation relative to earnings. However, fluctuations in free cash flow raise concerns about sustainability.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
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
EBITDA	18.12M	97.51M	108.82M	114.18M	457.01M	281.17M
Net Income	11.24M	33.64M	37.07M	33.02M	259.10M	140.72M
Balance Sheet
Total Assets	2.47B	2.54B	2.62B	2.94B	3.08B	2.50B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.15B	1.18B	991.49M	1.07B	717.46M
Total Debt	23.26M	27.46M	32.63M	43.36M	63.97M	29.73M
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: Neutral
• Last Price: 0.36
• 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:2033, the sentiment is Neutral. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.35, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	82 Outperform	HK$330.99M	5.15	23.19%	8.64%	21.82%	125.68%
1100	69 Neutral	HK$643.75M	7.88	7.16%	5.41%	23.17%	-7.30%
1023	62 Neutral	HK$500.61M	5.10	-1.08%	11.54%	-4.68%	-112.44%
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
2033	49 Neutral	HK$740.90M	65.45	0.49%	1.94%	-16.46%	-87.89%
DPNEF	―	$123.19M	7.06	15.44%	4.92%	―	―
0676	48 Neutral	HK$723.34M	261.76	-1.85%	1.01%	-33.72%	-550.00%

Time Watch Investments Ltd. Corporate Events

Time Watch Investments Ltd. Enhances Governance with New Nomination Committee

Time Watch Investments Ltd. has established a Nomination Committee as part of its Board of Directors to enhance governance practices. The committee will consist of at least three members, primarily independent non-executive directors, with a focus on gender diversity. This move is expected to strengthen the company’s leadership structure and ensure a more inclusive decision-making process.