Emperor Watch & Jewellery (887) H2 2024 earnings summary

Executive summary

• Revenue rose 8.4% year-over-year to HK$5,230.3 million, driven by strong Hong Kong performance and significant growth in jewellery sales.

• Net profit declined 14.0% to HK$256.7 million, with basic EPS at HK3.79 cents, reflecting margin pressure and higher costs.

• Final dividend proposed at HK0.45 cent per share, total annual dividend at HK1.10 cents, both lower than prior year.

• Retail network expanded to 82 stores across Hong Kong, Macau, Mainland China, Singapore, and Malaysia.

Financial highlights

• Gross profit increased 2.1% to HK$1,480.9 million compared to the previous year.

• Adjusted EBITDA fell 7.9% to HK$433 million year-over-year.

• Cash and cash equivalents rose to HK$949.8 million, with no bank borrowings and a net cash position.

• Current ratio improved to 7.7 from 7.3, and quick ratio to 2.0 from 1.5 year-over-year.

Outlook and guidance

• Anticipates retail market recovery due to resumed travel schemes, expected US rate cuts, and government stimulus.

• Expects continued strong demand for gold jewellery as an alternative investment amid volatile property and stock markets.

• Plans to optimize product offerings and expand market presence in response to dynamic market conditions.