But it improved from a 25% decline in 2016.
According to Maybank Kim Eng, watch’s shares have surged by 75-100% since Jun-16. Swiss watch exports to HK, the world’s largest market, dropped 3.9% in Jan 2017, but improved from a decline of 25% YoY in 2016.
"The number of sellside analysts covering the space fell from 12 in 2014 to just one now. Emperor W&J is still loss-making, while Oriental Watch is barely profitable. Oriental Watch is the most sensitive to a rental reduction given its net margin was just 0.3% in 1H17 (Sep end). Emperor W&J and Oriental Watch’s inventory levels have fallen by 26% since 2013 and both are net cash," the analyst said.
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