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Emperor Watch & Jewellery
(0887)
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Rating:79Outperform
Price Target:
HK$0.33
â–²(8.67% Upside)
Action:Reiterated
Date:07/23/26
The score is driven primarily by strengthening financial performance (improving 2025 profitability, strong cash generation, and a low-leverage balance sheet) and very attractive valuation (low P/E and high dividend yield). Technical indicators are largely neutral, providing only modest support and limiting the overall score.
Positive Factors
Improved Profitability
Sustained margin improvement to ~8% reflects structural operating leverage and better cost control. With gross margin stable (~28–32%), higher net margins suggest the company can convert sales into durable profits, strengthening free cash flow and dividend sustainability over 2–6 months.
Negative Factors
Cyclical Demand Sensitivity
Historic revenue volatility shows exposure to luxury consumer cycles and tourism/footfall swings. Structural sensitivity means earnings and cash flow can slip materially during downturns, limiting predictability of profits and making planning for inventory and staffing more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
Sustained margin improvement to ~8% reflects structural operating leverage and better cost control. With gross margin stable (~28–32%), higher net margins suggest the company can convert sales into durable profits, strengthening free cash flow and dividend sustainability over 2–6 months.
Read all positive factors
Emperor Watch & Jewellery (0887) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.14B
Dividend Yield6.92%
Average Volume (3M)4.12M
Price to Earnings (P/E)3.7
Beta (1Y)0.50
Revenue Growth8.83%
EPS Growth109.28%
CountryHK
Employees784
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.08
Shares Outstanding7,256,708,000
10 Day Avg. Volume4,320,000
30 Day Avg. Volume4,120,741
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.29
Price to Sales (P/S)0.29
P/FCF Ratio1.71
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)0.08
Revenue Forecast (FY)HK$6.97B
Emperor Watch & Jewellery Business Overview & Revenue Model
Company Description
Emperor Watch & Jewellery Limited functions as an investment holding enterprise primarily focused on the retail of high-end timepieces and exquisite jewelry. The company specializes in offering European-manufactured watches and its own exclusive l...
How the Company Makes Money
The company primarily makes money by selling watches and jewellery to consumers through its retail network, earning revenue from product sales (retail turnover). Gross profit is generated from the margin between procurement costs (inventory purcha...
Emperor Watch & Jewellery Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.91B | 5.77B | 5.23B | 4.82B | 3.68B | 3.93B |
| Gross Profit | 1.91B | 1.78B | 1.48B | 1.45B | 1.18B | 1.23B |
| EBITDA | 987.76M | 752.27M | 760.00M | 773.98M | 637.98M | 667.60M |
| Net Income | 572.39M | 458.44M | 256.74M | 299.22M | 222.13M | 204.69M |
Balance Sheet | ||||||
| Total Assets | 7.19B | 6.92B | 5.94B | 5.71B | 5.38B | 5.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 1.81B | 949.82M | 619.65M | 664.39M | 556.34M |
| Total Debt | 547.55M | 613.47M | 412.33M | 304.63M | 300.10M | 416.91M |
| Total Liabilities | 1.02B | 1.03B | 728.26M | 661.68M | 536.77M | 629.47M |
| Stockholders Equity | 5.88B | 5.62B | 5.21B | 5.05B | 4.85B | 4.72B |
Cash Flow | ||||||
| Free Cash Flow | 471.24M | 967.17M | 692.87M | 301.69M | 568.34M | 939.27M |
| Operating Cash Flow | 600.18M | 1.10B | 769.08M | 403.59M | 605.58M | 973.56M |
| Investing Cash Flow | 126.77M | -278.25M | 62.01M | -66.48M | -220.44M | -17.44M |
| Financing Cash Flow | -358.77M | -258.88M | -375.06M | -344.38M | -466.27M | -808.60M |
Emperor Watch & Jewellery 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 | 3.72 | 9.96% | 6.92% | 8.83% | 109.28% | |
74 Outperform | HK$1.64B | 9.11 | 9.99% | 6.14% | -0.78% | -10.18% | |
69 Neutral | HK$12.90B | 6.32 | 14.28% | 7.14% | 28.96% | 86.00% | |
65 Neutral | HK$119.19B | 13.13 | 33.61% | 5.55% | 5.29% | 53.87% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | HK$1.54B | -15.58 | -2.86% | 12.82% | -21.99% | -138.89% | |
44 Neutral | HK$508.87M | -3.58 | -3.03% | 3.75% | -4.85% | 60.69% |
* Consumer Cyclical Sector Average
HK:0887
Emperor Watch & Jewellery
0.30
0.02
9.26%
HK:0256
Citychamp Watch & Jewellery Group
0.10
-0.16
-61.57%
HK:1929
Chow Tai Fook Jewellery Group
12.08
-3.22
-21.06%
HK:3389
Hengdeli Holdings
0.35
0.22
173.44%
HK:0590
Luk Fook Holdings (International)
21.98
-3.35
-13.23%
HK:0398
Oriental Watch Holdings
3.37
0.20
6.21%
Emperor Watch & Jewellery Corporate Events
Emperor Watch & Jewellery Expects 60% Profit Surge in First Half of 2026
Jul 21, 2026
Emperor Watch Jewellery has issued a positive profit alert, disclosing that it expects to report net profit of at least HK$310 million for the six months ended 30 June 2026, compared with HK$194 million a year earlier. The roughly 60% earnings in...
Emperor Watch & Jewellery Wins Strong Shareholder Backing at AGM
May 18, 2026
Emperor Watch Jewellery shareholders approved all resolutions at the annual general meeting held on 18 May 2026, with all directors attending in person or electronically and Tricor Investor Services acting as scrutineer. Investors backed the adop...
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.