company background image
398

Oriental Watch Holdings SEHK:398 Stock Report

Last Price

HK$4.36

Market Cap

HK$2.2b

7D

-2.2%

1Y

38.0%

Updated

28 Sep, 2022

Data

Company Financials
398 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

398 Stock Overview

Oriental Watch Holdings Limited, an investment holding company, engages in watch trading business in Hong Kong, Macau, Taiwan, and Mainland China.

Oriental Watch Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Oriental Watch Holdings
Historical stock prices
Current Share PriceHK$4.36
52 Week HighHK$5.42
52 Week LowHK$3.10
Beta0.52
1 Month Change-3.11%
3 Month Change-5.22%
1 Year Change37.97%
3 Year Change186.84%
5 Year Change156.47%
Change since IPO364.13%

Recent News & Updates

Shareholder Returns

398HK Specialty RetailHK Market
7D-2.2%-3.3%-3.9%
1Y38.0%-35.1%-25.9%

Return vs Industry: 398 exceeded the Hong Kong Specialty Retail industry which returned -35.1% over the past year.

Return vs Market: 398 exceeded the Hong Kong Market which returned -25.9% over the past year.

Price Volatility

Is 398's price volatile compared to industry and market?
398 volatility
398 Average Weekly Movement2.5%
Specialty Retail Industry Average Movement5.7%
Market Average Movement6.3%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 398 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: 398's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1961587Dennis Yeunghttps://www.orientalwatch.com

Oriental Watch Holdings Limited, an investment holding company, engages in watch trading business in Hong Kong, Macau, Taiwan, and Mainland China. It offers watches of various brands, such as Rolex, Tudor, Piaget, Grovana, Hublot, Oris, Sacom, Omega, Titoni, Rado, etc. The company also holds properties. As of March 31, 2022, it operated 44 retail stores and 1 online store in Hong Kong and Mainland China.

Oriental Watch Holdings Fundamentals Summary

How do Oriental Watch Holdings's earnings and revenue compare to its market cap?
398 fundamental statistics
Market CapHK$2.17b
Earnings (TTM)HK$362.57m
Revenue (TTM)HK$3.64b

5.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
398 income statement (TTM)
RevenueHK$3.64b
Cost of RevenueHK$2.46b
Gross ProfitHK$1.18b
Other ExpensesHK$817.71m
EarningsHK$362.57m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.74
Gross Margin32.43%
Net Profit Margin9.96%
Debt/Equity Ratio1.4%

How did 398 perform over the long term?

See historical performance and comparison

Dividends

17.2%

Current Dividend Yield

25%

Payout Ratio

Does 398 pay a reliable dividends?

See 398 dividend history and benchmarks
When do you need to buy 398 by to receive an upcoming dividend?
Oriental Watch Holdings dividend dates
Ex Dividend DateSep 29 2022
Dividend Pay DateOct 24 2022
Days until Ex dividend0 days
Days until Dividend pay date25 days

Does 398 pay a reliable dividends?

See 398 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 398 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 398?

Other financial metrics that can be useful for relative valuation.

398 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA2.8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 398's PE Ratio compare to its peers?

398 PE Ratio vs Peers
The above table shows the PE ratio for 398 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average42.2x
1942 MOG Holdings
107.2xn/aHK$1.8b
280 King Fook Holdings
5.6xn/aHK$345.9m
3389 Hengdeli Holdings
47.6xn/aHK$1.1b
590 Luk Fook Holdings (International)
7.9x12.2%HK$11.5b
398 Oriental Watch Holdings
5.9xn/aHK$2.2b

Price-To-Earnings vs Peers: 398 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (42.2x).


Price to Earnings Ratio vs Industry

How does 398's PE Ratio compare vs other companies in the HK Specialty Retail Industry?

Price-To-Earnings vs Industry: 398 is good value based on its Price-To-Earnings Ratio (5.9x) compared to the Hong Kong Specialty Retail industry average (8.2x)


Price to Earnings Ratio vs Fair Ratio

What is 398's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

398 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 398's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 398 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 398 (HK$4.36) is trading below our estimate of fair value (HK$34.16)

Significantly Below Fair Value: 398 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


21.8%

Forecasted Retail 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 Oriental Watch Holdings 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.


Discover growth companies

  • Examine whether Oriental Watch Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Oriental Watch Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Oriental Watch Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


32.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 398 has high quality earnings.

Growing Profit Margin: 398's current net profit margins (10%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: 398's earnings have grown significantly by 32.6% per year over the past 5 years.

Accelerating Growth: 398's earnings growth over the past year (55.4%) exceeds its 5-year average (32.6% per year).

Earnings vs Industry: 398 earnings growth over the past year (55.4%) exceeded the Specialty Retail industry -10.2%.


Return on Equity

High ROE: 398's Return on Equity (17.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Oriental Watch Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 398's short term assets (HK$2.0B) exceed its short term liabilities (HK$486.1M).

Long Term Liabilities: 398's short term assets (HK$2.0B) exceed its long term liabilities (HK$357.0M).


Debt to Equity History and Analysis

Debt Level: 398 has more cash than its total debt.

Reducing Debt: 398's debt to equity ratio has reduced from 5.1% to 1.4% over the past 5 years.

Debt Coverage: 398's debt is well covered by operating cash flow (2552.1%).

Interest Coverage: 398 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Discover healthy companies

Dividend

What is Oriental Watch Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


17.18%

Current Dividend Yield

Dividend Yield vs Market

Oriental Watch Holdings Dividend Yield vs Market
How does Oriental Watch Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (Oriental Watch Holdings)17.2%
Market Bottom 25% (HK)2.9%
Market Top 25% (HK)8.7%
Industry Average (Specialty Retail)4.0%
Analyst forecast in 3 Years (Oriental Watch Holdings)n/a

Notable Dividend: 398's dividend (17.18%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.9%).

High Dividend: 398's dividend (17.18%) is in the top 25% of dividend payers in the Hong Kong market (8.67%)


Stability and Growth of Payments

Stable Dividend: 398's dividend payments have been volatile in the past 10 years.

Growing Dividend: 398's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (25%), 398's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.3%), 398's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

14.0yrs

Average board tenure


CEO

Dennis Yeung (53 yo)

1.58yrs

Tenure

HK$76,947,000

Compensation

Mr. Him Kit Yeung, also known as Dennis, has been the Managing Director of Oriental Watch Holdings Limited since March 2003 and serves as Chief Executive. Mr. Yeung joined Oriental Watch Holdings Ltd in 19...


CEO Compensation Analysis

Dennis Yeung's Compensation vs Oriental Watch Holdings Earnings
How has Dennis Yeung's remuneration changed compared to Oriental Watch Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022HK$77mHK$4m

HK$363m

Dec 31 2021n/an/a

HK$352m

Sep 30 2021n/an/a

HK$342m

Jun 30 2021n/an/a

HK$288m

Mar 31 2021HK$51mHK$3m

HK$233m

Dec 31 2020n/an/a

HK$165m

Sep 30 2020n/an/a

HK$97m

Jun 30 2020n/an/a

HK$98m

Mar 31 2020HK$8mHK$3m

HK$100m

Dec 31 2019n/an/a

HK$118m

Sep 30 2019n/an/a

HK$136m

Jun 30 2019n/an/a

HK$137m

Mar 31 2019HK$7mHK$3m

HK$138m

Dec 31 2018n/an/a

HK$147m

Sep 30 2018n/an/a

HK$157m

Jun 30 2018n/an/a

HK$148m

Mar 31 2018HK$7mHK$3m

HK$139m

Dec 31 2017n/an/a

HK$98m

Sep 30 2017n/an/a

HK$58m

Jun 30 2017n/an/a

HK$37m

Mar 31 2017HK$4mHK$3m

HK$16m

Dec 31 2016n/an/a

HK$1m

Sep 30 2016n/an/a

-HK$14m

Jun 30 2016n/an/a

-HK$15m

Mar 31 2016HK$4mHK$3m

-HK$16m

Compensation vs Market: Dennis's total compensation ($USD9.80M) is above average for companies of similar size in the Hong Kong market ($USD304.85K).

Compensation vs Earnings: Dennis's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: 398's board of directors are seasoned and experienced ( 14 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

SEHK:398 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
15 Jun 22SellHK$6,865,115HSBC Global Asset Management (UK) LimitedCompany1,472,000HK$4.66
07 Feb 22BuyHK$7,828,337HSBC Global Asset Management (UK) LimitedCompany1,772,000HK$4.42
06 Oct 21SellHK$1,362,688FMR LLCCompany426,000HK$3.20
29 Sep 21SellHK$495,646FMR LLCCompany158,000HK$3.14

Ownership Breakdown

What is the ownership structure of 398?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders16,625,1613.4%
Hedge Funds29,164,0006.0%
Institutions82,976,53917.0%
Private Companies146,394,14430.0%
General Public212,198,38043.5%

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


Top Shareholders

Top 19 shareholders own 47.61% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
26.3%
Datsun Holdings Limited
128,164,561HK$558.8m0%no data
4.93%
HSBC Global Asset Management (UK) Limited
24,027,344HK$104.8m-3.3%0.01%
4.92%
FMR LLC
23,999,919HK$104.6m0%no data
3.74%
Estate Of Yeung Ming Biu
18,229,583HK$79.5m0%no data
3.31%
TIG Advisors, LLC
16,134,000HK$70.3m0%0.47%
1.63%
Po Au
7,920,000HK$34.5m0%no data
0.84%
Him Kit Yeung
4,084,000HK$17.8m0%no data
0.66%
Dai Hoe Sun
3,200,000HK$14.0m0%no data
0.47%
DJE Kapital AG
2,310,600HK$10.1m0%0.03%
0.29%
Man Yee Yeung
1,421,161HK$6.2m0%no data
0.23%
American Century Investment Management Inc
1,102,828HK$4.8m41.24%no data
0.16%
Hansabay Lte Ltd
800,000HK$3.5m0%4.29%
0.078%
Universal-Investment-Gesellschaft Mit BeschrÄNkter Haftung
378,000HK$1.6m0%no data
0.022%
Russell Investment Management, LLC
109,000HK$475.2k0%no data
0.018%
Artico Partners AG
86,000HK$375.0k0%0.04%
0.0092%
Bessemer Investment Management LLC
44,788HK$195.3k0%no data
0.0078%
LGT Capital Partners Ltd.
38,000HK$165.7k0%no data
0.00041%
Connor, Clark & Lunn Investment Management Ltd.
2,000HK$8.7k0%no data
0.00005%
Merrill Lynch & Co. Inc., Banking Investments
265HK$1.2k0%no data

Company Information

Oriental Watch Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Oriental Watch Holdings Limited
  • Ticker: 398
  • Exchange: SEHK
  • Founded: 1961
  • Industry: Specialty Stores
  • Sector: Retail
  • Implied Market Cap: HK$2.169b
  • Shares outstanding: 487.36m
  • Website: https://www.orientalwatch.com

Number of Employees


Location

  • Oriental Watch Holdings Limited
  • Wing On Centre
  • 19th Floor
  • Central
  • Hong Kong


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORWH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 1994
398SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 1994

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.