Regal Hotels International Holdings Limited (0078) AI Stock Analysis

• Market Cap: HK$476.35M
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -0.60%
• EPS Growth: 34.74%
• Country: HK
• Employees: 1,580
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.82
• Shares Outstanding: 898,782,350
• 10 Day Avg. Volume: 503,520
• 30 Day Avg. Volume: 1,046,375
• PEG Ratio: -0.02
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 6.55
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: HK$0.50 ▼(-4.91% Downside)

Regal Hotels International Holdings Limited faces significant financial challenges, with declining revenues, high leverage, and liquidity issues being the most impactful factors. Technical analysis provides mixed signals, and valuation metrics are unattractive due to negative earnings. These factors collectively result in a low overall stock score.

Positive Factors

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing resilience against market fluctuations and ensuring steady cash flow.

Strategic Location

Strategic locations in key markets enhance market presence and accessibility, which can lead to higher occupancy rates and sustained revenue growth.

Focus on Quality and Customer Satisfaction

Emphasizing quality and customer satisfaction can lead to strong brand loyalty and repeat business, supporting long-term revenue stability.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term profitability and growth prospects.

High Financial Leverage

High leverage can strain financial resources, limit strategic flexibility, and increase vulnerability to economic downturns, affecting long-term stability.

Negative Cash Flow

Negative cash flow from operations suggests difficulties in sustaining operations without external financing, posing risks to liquidity and financial health.

Regal Hotels International Holdings Limited Business Overview & Revenue Model

Company Description

Regal Hotels International Holdings Limited, an investment holding company, owns, operates, and manages hotels in Hong Kong, Mainland China, and internationally. The company operates through six segments: Hotel Operation and Management and Hotel Ownership; Asset Management; Property Development and Investment; Financial Assets Investments; Aircraft Ownership and Leasing; and Others. The company is also involved in the provision of hotel management services; and ownership of hotel properties for rental income. In addition, it invests in, develops, sells, and rents properties; and offers property agency and management services. Further, the company is involved in the trade of financial assets and other financial assets investments; aircraft ownership and leasing activities; sale of food products; operation and management of restaurants; operation of security storage lounge; provision of housekeeping and related services; and development and distribution of multimedia entertainment and digital educational content, and multi-platform social games. Additionally, it offers security and guarding, securities trading and investment, financing, nominee, contracting agency, estate agency and management, asset management, trademark holding, and room reservation services. The company is headquartered in Causeway Bay, Hong Kong. Regal Hotels International Holdings Limited is a subsidiary of Century City International Holdings Limited.

How the Company Makes Money

Regal Hotels International generates revenue primarily through its hotel operations, which include room bookings, food and beverage sales, and other ancillary services such as event hosting and concierge services. The company benefits from a diversified revenue model that includes both direct sales to guests and partnerships with travel agencies and online booking platforms. Seasonal promotions and loyalty programs further enhance guest retention and occupancy rates. Additionally, Regal Hotels may derive income from leasing properties and managing hotels on behalf of third-party owners, contributing to its overall financial performance. The company's strategic location in key markets, along with its focus on quality and customer satisfaction, plays a significant role in driving repeat business and maximizing revenue.

Regal Hotels International Holdings Limited Financial Statement Overview

Summary

Regal Hotels International Holdings Limited is experiencing significant financial instability. The income statement shows declining revenues and persistent losses, the balance sheet indicates high leverage and declining equity, and the cash flow statement reflects liquidity issues. These factors collectively suggest severe financial challenges.

Income Statement

Regal Hotels International Holdings Limited has faced a decline in total revenue from 2023 to 2024, contributing to a negative revenue growth rate. The gross profit margin has been erratic, with the 2024 year showing a gross profit that equaled total revenue due to negative costs of goods sold. The company experienced significant losses, with both net profit margin and EBIT margin being negative, indicating profitability challenges. These factors signal financial instability and weak profitability.

Balance Sheet

The debt-to-equity ratio has increased from 2023 to 2024, indicating rising financial leverage and potential risk. The equity ratio has decreased, reflecting a lower proportion of equity financing. Return on equity remains negative due to continued net losses, underscoring profitability issues. The company's balance sheet shows high leverage, posing a risk to financial stability.

Cash Flow

The cash flow statement shows a negative operating cash flow in 2024, reflecting challenges in generating cash from operations. Free cash flow is also negative, which, combined with negative operating cash flow, raises concerns about liquidity. The ratios of operating and free cash flow to net income are unfavorable, suggesting difficulties in converting income into cash. These factors highlight cash management issues and liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.83B	1.79B	1.83B	986.60M	678.70M
Gross Profit	887.30M	687.80M	652.30M	234.00M	-301.60M	-436.70M
EBITDA	110.90M	-706.40M	-181.70M	636.00M	228.00M	165.50M
Net Income	-1.68B	-2.60B	-1.79B	-473.10M	-494.40M	-999.30M
Balance Sheet
Total Assets	24.28B	24.97B	28.52B	30.25B	30.80B	32.46B
Cash, Cash Equivalents and Short-Term Investments	847.40M	1.17B	2.03B	3.68B	4.26B	4.69B
Total Debt	10.47B	15.61B	16.19B	15.60B	16.98B	16.04B
Total Liabilities	16.76B	16.76B	17.41B	18.59B	18.40B	19.04B
Stockholders Equity	7.54B	8.17B	10.93B	11.33B	13.67B	12.81B
Cash Flow
Free Cash Flow	26.20M	350.00M	499.90M	-163.30M	-597.80M	-1.35B
Operating Cash Flow	45.80M	428.60M	556.10M	-103.30M	-86.70M	-502.70M
Investing Cash Flow	173.60M	574.20M	-112.60M	-288.90M	696.50M	261.40M
Financing Cash Flow	-103.20M	-1.54B	-886.00M	-358.30M	-1.35B	-468.20M

Regal Hotels International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0078, the sentiment is Negative. The current price of 0.53 is below the 20-day moving average (MA) of 0.55, below the 50-day MA of 0.57, and below the 200-day MA of 0.64, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 30.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0078.

Regal Hotels International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1221	64 Neutral	HK$1.84B	17.44	2.49%	1.95%	-7.90%	58.19%
0184	62 Neutral	HK$711.02M	3.96	5.57%	4.67%	-3.51%	-31.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1270	58 Neutral	HK$1.71B	34.51	0.50%	3.37%	-22.04%	-90.42%
0201	56 Neutral	HK$617.35M	-22.58	-0.66%	―	3.97%	41.51%
0355	47 Neutral	HK$275.24M	-0.28	-18.68%	―	-3.51%	-15.27%
0078	40 Neutral	HK$476.35M	-0.27	-29.62%	―	-0.60%	34.74%

Regal Hotels International Holdings Limited Corporate Events

Regal Hotels and Affiliated Groups Delay Transaction Circulars Pending Final Lease Terms

Century City International, Paliburg Holdings and Regal Hotels have delayed sending shareholder circulars related to a previously announced transaction because they intend to finalize and execute a Second Supplemental Lease that will fully reflect the terms of an existing Letter of Intent. To ensure full compliance with Hong Kong Listing Rules and include all agreed transaction terms in the documents, the three companies have applied to the Stock Exchange for a waiver to extend the circular despatch deadline from 8 January 2026 to 5 March 2026, and will issue a further announcement on the waiver status and new mailing date, signaling a modest procedural delay but no indication of a change in the underlying deal intent.

The most recent analyst rating on (HK:0078) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Regal Hotels International Holdings Limited stock, see the HK:0078 Stock Forecast page.

Regal Hotels Secures Three-Year Extension for Regal Airport Hotel Lease

Regal Hotels International Holdings Limited, through its subsidiary Bauhinia Hotels Limited, has entered into a binding Letter of Intent with the Airport Authority Hong Kong to extend the sub-lease of the Regal Airport Hotel for an additional three years beyond its original expiry in 2028. This extension is significant for Regal as it ensures continued operations at a key location, potentially impacting its financial performance and market positioning. The transaction is considered a major one under the Hong Kong Stock Exchange Listing Rules, requiring shareholder approval, which has already been obtained in writing, thus eliminating the need for a general meeting.

The most recent analyst rating on (HK:0078) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Regal Hotels International Holdings Limited stock, see the HK:0078 Stock Forecast page.

Regal Hotels and RH International Announce Relocation of Hong Kong Offices

Regal Hotels International Holdings Limited and RH International Finance Limited have announced a change in their head office and principal place of business in Hong Kong, effective from November 3, 2025. Both companies will relocate to the 20th Floor, 68 Yee Wo Street, Causeway Bay, Hong Kong, while their telephone and facsimile numbers will remain the same. This move may streamline operations and enhance their presence in the Hong Kong market.

The most recent analyst rating on (HK:0078) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Regal Hotels International Holdings Limited stock, see the HK:0078 Stock Forecast page.