Emperor Watch & Jewellery (887) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose 5.0% year-over-year to HK$2,934 million, with strong growth in both Hong Kong and Chinese Mainland markets.

• Net profit surged 63.9% to HK$318 million, driven by improved gross margin and operational efficiency.

• Basic EPS increased to HK4.28 cents, up 56.8% year-over-year.

• Interim dividend declared at HK0.90 cents per share, up 63.6% from the prior year.

Financial highlights

• Gross profit increased 15.4% to HK$969 million, with gross margin improving to 33.0% from 30.1% year-over-year.

• Adjusted EBITDA rose 50.8% year-over-year to HK$448 million.

• Net cash position at 30 June 2026 was HK$1,565 million, with no bank borrowings and a net gearing ratio of zero.

• Current ratio improved to 6.3 and quick ratio was 2.2.

• Staff costs for the period were HK$204 million, with 815 employees as of 30 June 2026.

Outlook and guidance

• Hong Kong economy expected to remain resilient in H2 2026, supported by tourism, stock market rebound, and relaxed US tariffs.

• Group will continue expanding jewellery business and enhancing luxury watch retail experience, while monitoring macroeconomic headwinds such as geopolitical tensions and gold price volatility.

• Chinese Mainland luxury consumption is recovering, but macro headwinds persist.