Rich Goldman Holdings Limited (0070) AI Stock Analysis

• Market Cap: €127.96M
• Dividend Yield: N/A
• Average Volume (3M): 556.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 12.77%
• EPS Growth: -223.45%
• Country: HK
• Employees: 82
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.03
• Shares Outstanding: 1,938,822,600
• 10 Day Avg. Volume: 1,257,840
• 30 Day Avg. Volume: 556,669
• PEG Ratio: 0.01
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is driven by financial performance concerns, particularly negative profitability and cash flow metrics, which are major detractors. The technical analysis shows a bullish trend but also highlights the stock's overbought status. Valuation metrics further weigh down the score due to a negative P/E ratio.

Rich Goldman Holdings Limited Business Overview & Revenue Model

Company Description

Rich Goldman Holdings Limited (0070) is a Hong Kong-based investment holding company engaged primarily in the gaming and entertainment sectors. The company operates through its subsidiaries, providing services related to hotel operations, gaming promotion, and money lending. With a focus on Macau's vibrant gaming market, Rich Goldman Holdings leverages its strategic partnerships and assets to deliver entertainment and hospitality services.

How the Company Makes Money

Rich Goldman Holdings Limited generates revenue through several key streams. The company earns substantial income from its gaming promotion operations, which involve collaborating with casino operators to attract VIP clients and gamblers, thereby earning a commission or share of gaming turnovers. Another significant revenue stream is its hotel operations, where the company manages properties and derives income from room bookings, dining, and related hospitality services. Additionally, Rich Goldman Holdings engages in money lending activities, providing loans and related financial services, which contribute to its earnings through interest income. Strategic partnerships and alliances in the gaming sector further bolster its revenue potential by expanding its client base and operational reach.

Rich Goldman Holdings Limited Financial Statement Overview

Summary

Rich Goldman Holdings Limited faces significant financial challenges. Despite a 28.9% revenue increase from 2023 to 2024, negative EBIT and EBITDA margins signal operational inefficiencies. The net profit margin is also negative, indicating ongoing losses. The balance sheet is stable with a strong equity position and low leverage, but cash flow remains weak with negative free and operating cash flows, highlighting the need for strategic improvements.

Income Statement

Rich Goldman Holdings Limited has shown a significant decline in financial performance over recent years. Total revenue increased by 28.9% from 2023 to 2024, but this was accompanied by a negative EBIT and EBITDA margin, indicating operational inefficiencies. The net profit margin is negative, suggesting persistent losses. Despite revenue growth, the company's profitability remains a major concern.

Balance Sheet

The company exhibits a strong equity position with a debt-to-equity ratio of 0.20 in 2024, reflecting low leverage. However, the return on equity is negative due to consistent net losses. The equity ratio remains strong at approximately 70.5%, indicating a stable capital structure. While the balance sheet shows stability, the negative profitability metrics are a critical downside.

Cash Flow

Rich Goldman Holdings Limited's cash flow situation is concerning, with a negative free cash flow and operating cash flow in 2024. The operating cash flow to net income ratio is negative, reflecting inefficiencies in cash generation. The cash flow from financing activities shows reliance on external funding. Despite some improvement in free cash flow growth from 2023 to 2024, overall cash flow health is weak.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	126.75M	98.38M	60.35M	51.06M	53.92M
Gross Profit	62.87M	58.68M	27.52M	24.19M	-465.00K
EBITDA	-10.21M	14.11M	22.53M	7.12M	35.94M
Net Income	-50.48M	-10.85M	-3.63M	-30.36M	-85.70M
Balance Sheet
Total Assets	1.51B	1.46B	1.45B	1.18B	1.23B
Cash, Cash Equivalents and Short-Term Investments	77.24M	63.11M	121.50M	463.60M	160.00M
Total Debt	213.06M	109.97M	8.15M	0.00	0.00
Total Liabilities	340.32M	236.15M	202.76M	10.36M	9.23M
Stockholders Equity	1.06B	1.11B	1.15B	1.16B	1.19B
Cash Flow
Free Cash Flow	-76.86M	-99.71M	-82.88M	327.16M	-50.43M
Operating Cash Flow	-74.26M	-97.92M	-81.78M	327.65M	-50.37M
Investing Cash Flow	751.00K	-1.79M	-35.72M	-497.00K	20.77M
Financing Cash Flow	88.13M	44.89M	-223.65M	-23.55M	105.43M

Rich Goldman Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0070, the sentiment is Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.16 is Negative, neither overbought nor oversold. The STOCH value of 81.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0070.

Rich Goldman Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1655	67 Neutral	HK$89.40M	0.30		―	―	―
8400	60 Neutral	HK$40.00M	10.53	20.64%	―	70.92%	―
Sector *	57 Neutral	HK$24.98B	3.78	-1.97%	5.91%	-0.17%	-66.83%
0070	47 Neutral	€127.96M	―	-8.56%	―	12.77%	-223.45%
8308	44 Neutral	HK$80.98M	―	-28.31%	―	-0.38%	51.41%
1371	41 Neutral	€50.96M	―		―	6.90%	-80.61%
0959	20 Underperform	HK$92.34M	―		―	―	63.60%

Rich Goldman Holdings Limited Corporate Events

Rich Goldman Holdings Limited Strengthens Leadership with Key Appointments

Rich Goldman Holdings Limited has announced key appointments to its executive team, with Ms. Yu Huan joining as an executive director and Ms. Lin Yee Man being appointed as a member of the remuneration committee, both effective from May 30, 2025. These appointments reflect the company’s strategic focus on strengthening its leadership team, potentially impacting its operational efficiency and governance, as Ms. Yu brings extensive experience in property leasing, corporate management, investment, and credit.

Rich Goldman Holdings Limited Updates Board of Directors

Rich Goldman Holdings Limited has announced an update to its Board of Directors, effective from May 30, 2025. The Board consists of Executive Directors Ms. Lin Yee Man, who also serves as Chairman, and Ms. Yu Huan, along with Independent Non-executive Directors Mr. Cheung Yat Hung, Alton, Mr. Yue Fu Wing, and Ms. Yeung Hoi Ching. The company has three Board committees: Audit, Remuneration, and Nomination, with specific directors assigned to each. This restructuring could impact the company’s governance and strategic direction.