东方表行：受劳力士带动，FY26核心品牌营收稳健

Hong Kong & China Market Daily What’s Hot Today: Oriental Watch (398 HK, HK$3.26, HK$1.6bn) Cashing in on Oriental Watch (OW) reported FY26 revenue of HK$3.4bn, down 0.8% YoY. Corebrands such as Rolex, which contributed 92% of total revenue, saw a 2.3% YoYdecline to HK$3.16bn, with unit volume falling 7% while a 5% ASP hike partiallyoffsetting the impact. Other brands delivered a 21% YoY surge in revenue toHK$0.27bn, with volume down 11% but ASP was up 36% YoY, largely driven bybrand price adjustments and a richer product mix. GPM edged down 0.4 ppts to Net cash equals 56% of market cap:The company proposed a final dividend of4.0 HK cents and a special dividend of 12.3 HK cents. Total dividend in FY26amounted to 37.1 HK cents, for a payout ratio of 100.4%, marking the 9thconsecutive year of over 100% payout. As of 31 March 2026, Oriental Watch had Mainland China Gains Traction:During the period, OW streamlined its retailnetwork from 43 POS to 41, mainly driven by store rationalization in MainlandChina,where the physical count was reduced from 26 to 24(plus one Breaking the revenue down by markets, mainland China accounted for 80% ofthe total revenue and saw an increase of 4.5% YoY to HK$2.7bn.In contrast,revenue from Hong Kong dropped by 11.1% YoY to HK$673mn, with store countunchanged at 11 physical outlets plus one ecommerce site.Macau revenue Looking ahead, Hong Kong's appeal to Mainland luxury shoppers has waned,prompting the company to reallocate some inventory to the Mainland market Morning Snapshot Hong Kong & China Market Daily Our views:Oriental Watch's FY26 revenue declined only 0.8% YoY, well ahead of our earlier expectation of anMSD-LDD drop. Management indicated that sales momentum in the April–June period has been encouraging, Going forward, we remain positive about the company as it is one of the largest Rolex dealers in China, withstores in prime locations and a strong partnership that ensures consistent supply. Rolex has proven its brandresilience across cycles and with nearly 90% of Oriental Watch's revenue tied to it, we view this concentration We consider Oriental Watch a solid yield play which has solid balance sheet backing. The counter is trading at8x FY27 P/E and a yield of 11.6%. (Research Department) Kingsway Research Team AnalystHoward WongAlan LiAmelia Deng Emailhoward.wong@sunwahkingsway.comalan.li@sunwahkingsway.comamelia.deng@sunwahkingsway.com Disclaimer This document is not an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The securities referred to in thisdocument may not be eligible for sale in certain jurisdiction. Neither this document nor any portion hereof may be taken distributed ortransmitted directly or indirectly into such jurisdiction nor to any residents thereof. Any failure to comply with this restriction mayconstitute a violation of the applicable laws and regulations and persons into whose possession this document comes should informthemselves about, and observe, any such restrictions. This document has been produced for private circulation and may not be copied,photocopied, duplicated, or redistributed without the prior written consent of Kingsway Financial Services Group Limited (“KFS”) and its This report is distributed in Hong Kong Special Administrative Region of the People’s Republic of China (“Hong Kong”) by KFS whichis registered as a licensed corporation under the Securities and Futures Ordinance (Cap.571 of The Laws of Hong Kong) with theSecurities and Futures Commission of Hong Kong (“SFC”) and its SFC CE number is ADF346. The information contained in this report has been taken from sources believed to be reliable but no representation or warrantyexpressed or implied is made as to their accuracy or correctness. This report is published for the assistance of recipients but is not tobe relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. It is not to be construed as an offer,invitation or solicitation to buy or sell any securities of the company or companies covered herein. Any recommendation contained inthis report does not have regard to the specific investment objectives, financial situation and the particular needs of any specificaddressee. All opinions and estimates reflect our judgment on the date of this report and are subject to change without notice. KFS, including its parent, subsidiaries and/or affiliates, may act as lead or co-manager in an offering of the securities of any issuerdiscussed herein, may from time to time perform financial services or other advisory services for, or solicit financial services or other Within the past year, KFS, including its parent, subsidiaries and/or affiliates, may have acted as market maker or traded on a principalbasis in the financial instruments of any issuer discussed herein and may act as underwriter, placement agent, advisor or lender tosuch issuer. KFS, including its parent, subsidiaries, af