Emperor Watch & Jewellery (0887) AI Stock Analysis

• Market Cap: HK$2.07B
• Dividend Yield: 3.57%
• Average Volume (3M): 12.18M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.40
• Revenue Growth: 6.82%
• EPS Growth: 42.74%
• Country: HK
• Employees: 876
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.03
• Shares Outstanding: 7,256,708,000
• 10 Day Avg. Volume: 11,303,800
• 30 Day Avg. Volume: 12,180,266
• PEG Ratio: -0.31
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 1.63
• 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: 72 Outperform
• Price Target: HK$0.50 ▲(78.57% Upside)

Emperor Watch & Jewellery's strong financial performance and attractive valuation are the primary drivers of its score. However, technical indicators suggest a lack of positive momentum, which tempers the overall outlook. The absence of earnings call data and corporate events means these factors do not influence the score.

Emperor Watch & Jewellery Business Overview & Revenue Model

Company Description

Emperor Watch & Jewellery (0887) is a prominent player in the luxury retail sector, primarily focusing on the sale of high-end watches and fine jewellery. Established in Hong Kong, the company operates through a network of retail outlets and an online platform, providing a curated selection of prestigious watch brands and exquisite jewellery pieces. Emperor Watch & Jewellery is known for its commitment to quality, craftsmanship, and customer service, catering to a discerning clientele seeking luxury products.

How the Company Makes Money

The company generates revenue through multiple streams, primarily by selling luxury watches and jewellery at retail prices. Key revenue sources include direct sales from their physical stores and e-commerce platform, where they offer a wide range of high-end brands. Additionally, Emperor Watch & Jewellery may benefit from exclusive partnerships with luxury watch brands, allowing them to offer limited editions or unique collections that can attract higher margins. The company may also engage in after-sales services such as maintenance, repairs, and customization, further contributing to its revenue. Seasonal promotions, loyalty programs, and strategic marketing practices also play a role in driving sales and enhancing customer retention, all of which are vital for sustaining profitability.

Emperor Watch & Jewellery Financial Statement Overview

Summary

Emperor Watch & Jewellery exhibits strong financial health with consistent revenue growth and robust cash flow generation. The company maintains low leverage and a strong equity position. However, there is slight pressure on net profit margins and a modest return on equity, indicating areas for potential improvement.

Income Statement

Emperor Watch & Jewellery demonstrated consistent revenue growth, with a 8.45% increase from 2023 to 2024. Their gross profit margin is stable at approximately 28.3%, and the net profit margin slightly decreased to 4.9% in 2024. EBIT and EBITDA margins remain healthy at 6.5% and 9.2%, respectively, reflecting efficient cost management. However, the slight decline in net profit margin from 6.2% in 2023 to 4.9% in 2024 indicates some pressure on net income.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 87.7% in 2024, indicating financial stability and low reliance on debt. The debt-to-equity ratio is low at 0.08, showcasing prudent financial management. Return on equity is modest at 4.9%, which suggests room for improving profitability using equity efficiently.

Cash Flow

Operating cash flow increased significantly to HKD 772 million in 2024, reflecting robust cash generation capabilities. Free cash flow also grew by 129.6%, indicating strong cash flow management. The operating cash flow to net income ratio is high at 3.01, suggesting efficient conversion of net income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.43B	5.23B	4.82B	3.68B	3.93B	2.63B
Gross Profit	1.54B	1.48B	1.45B	1.18B	1.23B	840.06M
EBITDA	511.07M	760.00M	773.98M	637.98M	667.60M	452.04M
Net Income	268.50M	256.74M	299.22M	222.13M	204.69M	33.99M
Balance Sheet
Total Assets	6.43B	5.94B	5.71B	5.38B	5.35B	5.77B
Cash, Cash Equivalents and Short-Term Investments	1.51B	949.82M	619.65M	664.39M	556.34M	405.11M
Total Debt	416.15M	412.33M	304.63M	300.10M	416.91M	1.06B
Total Liabilities	769.08M	728.26M	661.68M	536.77M	629.47M	1.22B
Stockholders Equity	5.39B	5.21B	5.05B	4.85B	4.72B	4.55B
Cash Flow
Free Cash Flow	867.01M	692.87M	301.69M	568.34M	939.27M	560.91M
Operating Cash Flow	946.58M	769.08M	403.59M	605.58M	973.56M	576.84M
Investing Cash Flow	-435.90M	62.01M	-66.48M	-220.44M	-17.44M	10.02M
Financing Cash Flow	-92.39M	-375.06M	-344.38M	-466.27M	-808.60M	-427.26M

Emperor Watch & Jewellery Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0887, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.30, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 56.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0887.

Emperor Watch & Jewellery Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	―	$14.70B	13.71	8.44%	4.34%	-12.95%	-37.76%
0116	―	HK$9.37B	7.90	9.13%	4.09%	-10.41%	67.25%
0887	―	HK$2.07B	7.56	5.10%	3.57%	6.82%	42.74%
0398	―	HK$1.65B	8.22	11.32%	10.35%	-5.19%	-19.96%
1929	―	$161.69B	27.89	22.73%	3.37%	-17.53%	-8.90%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0256	―	$748.52M	62.16	-7.92%	―	-18.07%	-1041.89%

Emperor Watch & Jewellery Corporate Events

Emperor Watch & Jewellery Reports Revenue Growth in 2025

Emperor Watch & Jewellery Limited, a prominent retailer of luxury watches and jewellery, operates in the Greater China region and beyond, with a focus on high-end European-made timepieces and its own branded jewellery. The company reported a 7.6% increase in total revenue for the first half of 2025, reaching HK$2,794 million, with notable growth in both its Hong Kong and Mainland China markets. The jewellery segment saw a significant rise of 13.4%, contributing to a gross profit increase of 7.7% to HK$840 million, while net profit rose by 4.9% to HK$194 million. The company continues to expand its retail network, with plans to open 600 new stores in Mainland China over the next five years, focusing on mid-to-high-end market segments. It also aims to enhance its product offerings by launching themed gold jewellery collections and collaborating with intellectual property products to attract younger consumers. Looking ahead, Emperor Watch & Jewellery is optimistic about the retail market’s growth, driven by increased foot traffic and strategic partnerships, positioning itself to capture opportunities in the luxury goods sector.

Emperor Watch & Jewellery Reports Revenue Growth and Strategic Expansion Plans

Emperor Watch & Jewellery Limited reported a 7.6% increase in total revenue to HK$2,794 million for the first half of 2025, driven by growth in both Hong Kong and Mainland China markets. The jewellery segment saw a significant 13.4% rise, contributing to a 4.9% increase in net profit. The company is strategically expanding its jewellery business in Mainland China by partnering with industry veteran Mr. Chan Sai Cheong, aiming to open 600 stores over the next five years, focusing initially on mid-to-high-end market segments in major cities.

The most recent analyst rating on (HK:0887) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Emperor Watch & Jewellery stock, see the HK:0887 Stock Forecast page.

Emperor Watch & Jewellery Declares Interim Dividend for 2025

Emperor Watch & Jewellery Limited announced an interim dividend of HKD 0.0055 per share for the six months ending June 30, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence its market positioning by reinforcing investor confidence.

The most recent analyst rating on (HK:0887) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Emperor Watch & Jewellery stock, see the HK:0887 Stock Forecast page.

Emperor Watch & Jewellery Schedules Board Meeting for Interim Results

Emperor Watch & Jewellery Limited has announced a board meeting scheduled for August 20, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is crucial as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.