建银国际：1月中国手表行业研究报告_.pdf

China/Hong Kong Consumer Discretionary China and Hong Kong Watch Sector 29 January 2013 The sweet spot is in the middle  Another win for the mid-end segment. We maintain our China and Hong Kong watch retailers Outperform rating on Hengdeli (3389 HK) but downgrade Share Target Emperor Watch Jewellery (887 HK) from Outperform to Neutral as we believe mid-end watch retailers will continue to Stock price price CCBIS P/E (x) outperform their high-end peers. Sales momentum of Company code (HK$)* (HK$) rating† CY12F CY13F high-end luxury watches remains sluggish as consumers Emperor Watch 887 HK 0.98 0.90 N 15.6 11.4 scale back on spending on big-ticket items in 2H12. Hengdeli 3389 HK 3.11 3.60 O 13.8 11.4 Same-store sales (SSS) for Emperor continued to Oriental Watch 398 HK 3.00 NA NR 10.1 9.0 underperform the market in 4Q12 but Hengdeli achieved † CCBIS ratings: O = Outperform; N = Neutral; U = Underperform; resilient growth throughout 2H12 thanks to its focus on NR = Not Rated low-to-mid end watches. Oriental Watch (398 HK, * Prices as at close on 29 January 2013 Not Rated), a mid-end operat