Oriental Watch Holdings says it expects a “substantially higher” return for its latest year thanks to an improved business environment.

As well as being able to command a higher profit margin, the company told the Stock Exchange of Hong Kong in a regulatory filing that it has benefited from effective cost-control measures.

Oriental Watch warns, however, that its alert is based only on the management’s preliminary assessment of its unaudited consolidated management accounts for the year to the end of March. These are now being reviewed by the company’s auditors, says chairman Yeung Ming Biu.

Established in 1961, the company has developed a network of retail shops in Mainland China, Hong Kong, Macau and Taiwan. It carries such brands as Audemars Piguet, Girard Perregaux, IWC, Jaeger-LeCoultre, Longines, Omega, Piaget, Rolex, Tudor and Vacheron Constantin.

Its 15 shops in Hong Kong and Macau include 11 Oriental Watch Company, two La Suisse Watch Company and two Rolex and Tudor Boutiques. The company this year opened a two-storey flagship store in Central.