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Oriental Watch Holdings
(0398)
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Rating:74Outperform
Price Target:
HK$3.50
▲(4.79% Upside)
Action:Reiterated
Date:07/25/26
The score is driven primarily by strong financial resilience (low leverage and steady cash generation) and attractive valuation (low P/E and high dividend yield). These positives are tempered by a weaker earnings trajectory with margin compression and only neutral-to-mildly positive technical momentum.
Positive Factors
Conservative balance sheet
Low and improving leverage gives the company durable financial resilience versus peers in cyclical luxury retail. Conservatively levered capital structure supports inventory financing, dividend payments and flexibility to weather demand swings without forcing asset sales or emergency funding.
Negative Factors
Flat to weak revenue trend
Limited top‑line momentum suggests constrained market share gains and reliance on existing store network and product sourcing rather than expanding demand. Over a 2–6 month horizon this limits organic earnings expansion and increases reliance on margin or payout management to sustain returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low and improving leverage gives the company durable financial resilience versus peers in cyclical luxury retail. Conservatively levered capital structure supports inventory financing, dividend payments and flexibility to weather demand swings without forcing asset sales or emergency funding.
Read all positive factors
Oriental Watch Holdings (0398) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.62B
Dividend Yield6.2%
Average Volume (3M)286.13K
Price to Earnings (P/E)9.0
Beta (1Y)0.15
Revenue Growth-0.78%
EPS Growth-10.18%
CountryHK
Employees567
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.37
Shares Outstanding487,358,220
10 Day Avg. Volume336,400
30 Day Avg. Volume286,129
Financial Highlights & Ratios
PEG Ratio-0.91
Price to Book (P/B)0.89
Price to Sales (P/S)0.47
P/FCF Ratio6.13
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
Oriental Watch Holdings Business Overview & Revenue Model
Company Description
Oriental Watch Holdings Limited operates as an investment holding company primarily engaged in the retail and distribution of timepieces. Its market reach extends across Hong Kong, Macau, Taiwan, and mainland China. The company features a wide arr...
How the Company Makes Money
The company primarily makes money by selling luxury watches to end customers through its own retail boutiques. Revenue is generated mainly from (1) retail sales of branded watches, where the group earns a gross margin on the difference between its...
Oriental Watch Holdings Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
80
Positive
Cash Flow
72
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.42B | 3.45B | 3.64B | 3.70B | 3.64B |
| Gross Profit | 967.74M | 1.09B | 1.15B | 1.05B | 1.05B |
| EBITDA | 460.76M | 507.87M | 522.97M | 587.15M | 675.67M |
| Net Income | 180.10M | 200.50M | 250.49M | 295.43M | 362.57M |
Balance Sheet | |||||
| Total Assets | 2.29B | 2.24B | 2.39B | 2.62B | 2.88B |
| Cash, Cash Equivalents and Short-Term Investments | 961.22M | 847.89M | 910.86M | 1.09B | 1.29B |
| Total Debt | 210.37M | 195.26M | 266.43M | 352.12M | 470.12M |
| Total Liabilities | 476.60M | 488.73M | 591.51M | 723.33M | 843.11M |
| Stockholders Equity | 1.81B | 1.75B | 1.79B | 1.89B | 2.04B |
Cash Flow | |||||
| Free Cash Flow | 262.44M | 263.44M | 293.50M | 399.52M | 679.29M |
| Operating Cash Flow | 310.57M | 288.09M | 346.99M | 446.49M | 752.12M |
| Investing Cash Flow | 65.69M | 24.07M | -67.84M | -61.71M | -97.64M |
| Financing Cash Flow | -293.42M | -363.95M | -423.46M | -530.65M | -457.74M |
Oriental Watch Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$2.14B | 3.79 | 9.96% | 6.80% | 8.83% | 109.28% | |
74 Outperform | HK$1.62B | 9.03 | 9.99% | 6.20% | -0.78% | -10.18% | |
72 Outperform | HK$2.36B | 9.17 | 6.71% | 9.23% | 3.51% | 27.91% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | HK$1.50B | -14.70 | -2.86% | 12.82% | -21.99% | -138.89% | |
43 Neutral | HK$493.29M | -3.65 | -3.03% | 3.75% | -4.85% | 60.69% | |
38 Underperform | HK$60.44M | -0.31 | -108.23% | 0.27% | ― | ― |
* Consumer Cyclical Sector Average
HK:0398
Oriental Watch Holdings
3.34
0.17
5.26%
HK:0256
Citychamp Watch & Jewellery Group
0.10
-0.17
-62.26%
HK:0113
Dickson Concepts (International)
5.96
1.22
25.71%
HK:0887
Emperor Watch & Jewellery
0.30
0.03
9.49%
HK:3389
Hengdeli Holdings
0.33
0.20
155.81%
HK:0444
Sincere Watch (Hong Kong)
0.01
0.00
0.00%
Oriental Watch Holdings Corporate Events
Oriental Watch Sets AGM With Dividend Payouts and New Share Mandate
Jul 22, 2026
Oriental Watch Holdings Limited has called an online annual general meeting for 20 August 2026, where shareholders will review and adopt the audited financial statements and directors’ and auditor’s reports for the year ended 31 March ...
Oriental Watch Holds Steady With Resilient FY2026 Results and Special Dividend
Jun 17, 2026
Oriental Watch Holdings reported largely stable full-year results for the year ended 31 March 2026, with turnover edging down 0.8% to HK$3.42 billion and profit attributable to shareholders slipping to HK$180 million. Earnings per share came in at...
Oriental Watch Proposes Final HKD 0.04 Dividend for FY2026
Jun 17, 2026
Oriental Watch Holdings Limited has proposed a final ordinary cash dividend of HKD 0.04 per share for the financial year ended 31 March 2026, subject to shareholder approval on 20 August 2026. The dividend will be paid in Hong Kong dollars, with s...
Oriental Watch Proposes Special Dividend for FY2026
Jun 17, 2026
Oriental Watch Holdings Limited has proposed a special cash dividend of HKD 0.123 per share for the financial year ended 31 March 2026, subject to shareholder approval on 20 August 2026. The dividend will be paid in Hong Kong dollars, with shares ...
Oriental Watch Sets June Board Meeting to Approve Annual Results and Consider Final Dividend
Jun 3, 2026
Oriental Watch Holdings has scheduled a board meeting for 17 June 2026 to review and approve the annual results for the financial year ended 31 March 2026, and to consider whether to recommend a final dividend for shareholders. The announcement si...
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.