Decline in Swiss Watch Exports Narrows in November, Helped by China; Swatch Remains Attractive

We maintain our fair value estimate of CHF 310 per share for Swatch Group following a release on Swiss watch exports in November. Export numbers were only 3.2% lower in the month, further improving from a 7% drop in October, bringing the total decline in watch exports from January to November 2020 to 23% in value terms. China led the growth, up 69.5% during the month, a significant acceleration from a 15% increase in October.