Emperor Watch & Jewellery (887) H1 2026 earnings summary

Executive summary

• Revenue rose 5.0% year-over-year to HK$2,934 million for the six months ended 30 June 2026, 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.

• Interim dividend increased 63.6% to HK0.90 cents per share.

Financial highlights

• Gross profit increased 15.4% to HK$969 million, with gross margin up 2.9pp to 33.0%.

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

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

• Bank balances and cash on hand stood at HK$1,573 million; net cash position of HK$1,565 million.

Outlook and guidance

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

• Chinese Mainland luxury consumption is recovering, but macro headwinds like geopolitical tensions and gold price volatility persist.

• Focus remains on expanding jewellery business and enhancing luxury watch retail experience.