SEHK:2033

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Time Watch Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2033 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

2033

9.4%

HK Luxury

5.3%

HK Market


1 Year Return

-31.9%

2033

-20.6%

HK Luxury

-20.4%

HK Market

Return vs Industry: 2033 underperformed the Hong Kong Luxury industry which returned -21.7% over the past year.

Return vs Market: 2033 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

2033IndustryMarket
7 Day-1.3%9.4%5.3%
30 Day0%-12.1%-8.5%
90 Day-18.1%-24.7%-14.7%
1 Year-28.7%-31.9%-18.3%-20.6%-17.6%-20.4%
3 Year1.2%-12.5%10.8%-2.2%-2.5%-12.3%
5 Year-8.0%-28.0%11.5%-6.0%-5.7%-20.9%

Price Volatility Vs. Market

How volatile is Time Watch Investments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Time Watch Investments undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2033 (HK$0.77) is trading below our estimate of fair value (HK$2.03)

Significantly Below Fair Value: 2033 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2033 is good value based on its PE Ratio (5.2x) compared to the Luxury industry average (7.3x).

PE vs Market: 2033 is good value based on its PE Ratio (5.2x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2033's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2033 is overvalued based on its PB Ratio (0.7x) compared to the HK Luxury industry average (0.7x).


Next Steps

Future Growth

How is Time Watch Investments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.1%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Time Watch Investments has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Time Watch Investments performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2033 has high quality earnings.

Growing Profit Margin: 2033's current net profit margins (12.2%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: 2033's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: 2033's earnings growth over the past year (19.1%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: 2033 earnings growth over the past year (19.1%) exceeded the Luxury industry -0.2%.


Return on Equity

High ROE: 2033's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is Time Watch Investments's financial position?


Financial Position Analysis

Short Term Liabilities: 2033's short term assets (HK$1.6B) exceed its short term liabilities (HK$284.8M).

Long Term Liabilities: 2033's short term assets (HK$1.6B) exceed its long term liabilities (HK$88.3M).


Debt to Equity History and Analysis

Debt Level: 2033's debt to equity ratio (2.1%) is considered satisfactory.

Reducing Debt: 2033's debt to equity ratio has reduced from 2.2% to 2.1% over the past 5 years.

Debt Coverage: 2033's debt is well covered by operating cash flow (862.9%).

Interest Coverage: 2033 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 2033 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2033's debt is covered by short term assets (assets are 33.9x debt).


Next Steps

Dividend

What is Time Watch Investments's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2033's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2033's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2033's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2033's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 2033 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2033's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.8yrs

Average management tenure


CEO

Michael Tung (67yo)

14.42s

Tenure

HK$17,109,000

Compensation

Mr. Koon Ming Tung, also known as Michael, has been the Chairman and Chief Executive Officer of Time Watch Investments Limited (formerly, Wee Poh Holdings Limited) since November 8, 2005. Mr. Tung Founded  ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD2.21M) is above average for companies of similar size in the Hong Kong market ($USD301.23K).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Koon Ming Tung
Chairman & CEO14.42yrsHK$17.11m70.45% HK$1.1b
Guanglei Deng
General Manager of Sales & Marketing Department and Executive Director5.5yrsHK$1.97mno data
Koon Kwok Tung
Executive Director1.08yrsHK$849.00k0.81% HK$12.9m
Wai Kit Tung
GM & Executive Director14.42yrsHK$1.02mno data
King Pui Mak
Chief Financial Officer1.67yrsno datano data
Siu Yu Wong
Group Financial Controller12.42yrsno datano data
Wai Man Hui
Company Secretary5.25yrsno datano data

8.8yrs

Average Tenure

49yo

Average Age

Experienced Management: 2033's management team is seasoned and experienced (8.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Koon Ming Tung
Chairman & CEO14.42yrsHK$17.11m70.45% HK$1.1b
Guanglei Deng
General Manager of Sales & Marketing Department and Executive Director5.5yrsHK$1.97mno data
Koon Kwok Tung
Executive Director1.08yrsHK$849.00k0.81% HK$12.9m
Wai Kit Tung
GM & Executive Director14.42yrsHK$1.02mno data
Ching Nam Ma
Independent Non-Executive Director7.25yrsHK$240.00kno data
Wing Keung Wong
Independent Non-Executive Director14.42yrsHK$240.00kno data
Ho Yan Choi
Independent Non-Executive Director6.92yrsHK$240.00kno data

7.3yrs

Average Tenure

60yo

Average Age

Experienced Board: 2033's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Time Watch Investments Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Time Watch Investments Limited
  • Ticker: 2033
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: HK$1.602b
  • Shares outstanding: 2.08b
  • Website: https://www.timewatch.com.hk

Number of Employees


Location

  • Time Watch Investments Limited
  • CEO Tower
  • 27th Floor
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2033SEHK (The Stock Exchange of Hong Kong Ltd.)YesNew Ordinary SharesHKHKDFeb 2013
0TWDB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURFeb 2013

Biography

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 in five segments: Tian Wang Watch, Balco Watch, Watch Movements Trading, Other Brands (PRC), and Other Brands (Global). It designs, manufactures, assembles, trades, sells, 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; imports and retails watches of other brands; 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, 2019, the company operated 2,955 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 13:12
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.