Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

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Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/oriental-watch-holdings" target="_blank" data-smartkarma-citation="entities:19950:1" rel="noopener">Oriental Watch (398 HK)</a> maintained its dividend yield of ~12% (annualized), declaring 20.8 HKD cents of dividend for H1FY26. Cash and Investments were ~ HKD1 billion (60% of market cap).</li>
<li>The company highlighted that the environment is challenging, given trade wars and tempered HK/Chinese demand. On our conservative numbers, the stock trades at 8.6x FY26PE. </li>
<li>
<a href="https://www.smartkarma.com/entities/oriental-watch-holdings" target="_blank" data-smartkarma-citation="entities:19950:1" rel="noopener">Oriental Watch (398 HK)</a>  will maintain its high dividend payout ratio of ~100%. Over the past 8 years, the company paid dividends of 3.8 HKD/share (&gt; the current share price).</li>
</ul>



Oriental Watch (398 HK) maintained its dividend yield of ~12% (annualized), declaring 20.8 HKD cents of dividend for H1FY26. Cash and Investments were ~ HKD1 billion (60% of market cap).
The company highlighted that the environment is challenging, given trade wars and tempered HK/Chinese demand. On our conservative numbers, the stock trades at 8.6x FY26PE. 

Oriental Watch (398 HK)  will maintain its high dividend payout ratio of ~100%. Over the past 8 years, the company paid dividends of 3.8 HKD/share (&gt; the current share price).


Oriental Watch (398 HK) H1 FY26: Maintaining A 12% Yield With 60% Of Market Cap In Cash

Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

<ul>
<li>Alternative data suggests a turn in the luxury wristwatch market. But most likely, this turn is due to US tariffs on Swiss watch imports, causing US buyers to panic buy. </li>
<li>Oriental Watch continues to be undervalued at just 8.3x P/E and a dividend yield of 12%</li>
<li>However, the Chinese watch market remains weak and there's no clear sign of a turnaround yet</li>
</ul>


Alternative data suggests a turn in the luxury wristwatch market. But most likely, this turn is due to US tariffs on Swiss watch imports, causing US buyers to panic buy. 
Oriental Watch continues to be undervalued at just 8.3x P/E and a dividend yield of 12%
However, the Chinese watch market remains weak and there's no clear sign of a turnaround yet


<ul>
<li>HK Department of Statistics data show the jewellery and watch retail market is improving, with June and July sales up 6.8% and 9.4% YoY, respectively.</li>
<li>China is by far <a href="https://www.smartkarma.com/entities/oriental-watch-holdings" target="_blank" data-smartkarma-citation="entities:19950:1" rel="noopener">Oriental Watch (398 HK)</a> 's most important market, accounting for 78% of sales. and sales are stable there so far. </li>
<li>The company holds cash equal to 50% of market capitalization; we forecast a H1 FY26 dividend of $0.22/share (annualized ~12.5% yield) on an 8.5x P/E.</li>
</ul>


HK Department of Statistics data show the jewellery and watch retail market is improving, with June and July sales up 6.8% and 9.4% YoY, respectively.
China is by far Oriental Watch (398 HK) 's most important market, accounting for 78% of sales. and sales are stable there so far. 
The company holds cash equal to 50% of market capitalization; we forecast a H1 FY26 dividend of $0.22/share (annualized ~12.5% yield) on an 8.5x P/E.


Oriental Watch (398 HK): HK Retail Environment Improving, China Stable

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<li>
<a href="https://www.smartkarma.com/entities/oriental-watch-holdings" target="_blank" data-smartkarma-citation="entities:19950:1" rel="noopener">Oriental Watch (398 HK)</a> delivered a resilient result with revenue/profits -5%/-20% YoY (ex-one offs -11.5% YoY), despite weakness in HK (22% of sales), where the company is now making losses. </li>
<li>Cash &amp; Investments dipped to 901 mn HKD, representing about 54% of the market capitalization. The company declared a 16.7 HKD cent/dividend (FY25: 41.3 HKD/cent yield 12%). </li>
<li>We believe that FY26 will be a year of consolidation, and with a weak HK, profits will remain subdued. Stock trades at 8.4x FY25 with a 12% dividend yield. </li>
</ul>



Oriental Watch (398 HK) delivered a resilient result with revenue/profits -5%/-20% YoY (ex-one offs -11.5% YoY), despite weakness in HK (22% of sales), where the company is now making losses. 
Cash &amp; Investments dipped to 901 mn HKD, representing about 54% of the market capitalization. The company declared a 16.7 HKD cent/dividend (FY25: 41.3 HKD/cent yield 12%). 
We believe that FY26 will be a year of consolidation, and with a weak HK, profits will remain subdued. Stock trades at 8.4x FY25 with a 12% dividend yield. 


Oriental Watch (398 HK): Resilient Despite Tough HK Environment, Dividend A Slight Disappointment

<ul>
<li>
<a href="https://www.smartkarma.com/entities/oriental-watch-holdings" target="_blank" data-smartkarma-citation="entities:19950:1" rel="noopener">Oriental Watch (398 HK)</a> went ex-dividend on the 4th of October. The stock gapped down more than what it paid out and now trades at 6x trailing PE.  </li>
<li>Cash at 1.1 bn HKD is greater than 50% of market capitalization, with a high trailing dividend yield of 16.2% and a rich history of paying chunky dividends. </li>
<li>We monitor the sales environment for HK/China, which shows a reasonably good pick-up in HK but lackluster for China.</li>
</ul>



Oriental Watch (398 HK) went ex-dividend on the 4th of October. The stock gapped down more than what it paid out and now trades at 6x trailing PE.  
Cash at 1.1 bn HKD is greater than 50% of market capitalization, with a high trailing dividend yield of 16.2% and a rich history of paying chunky dividends. 
We monitor the sales environment for HK/China, which shows a reasonably good pick-up in HK but lackluster for China.


Oriental Watch: Gone Ex-Dividend, Higher Yield, But Sales Softening in The Short-Term

Hong Kong

Oriental Watch Holdings Limited, through its subsidiaries, trades watches and invests in properties.

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Oriental Watch (398 HK)