Regal Hotels International Holdings Limited (0078) AI Stock Analysis

• Market Cap: HK$593.20M
• Dividend Yield: N/A
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: 1.87%
• EPS Growth: -42.24%
• Country: HK
• Employees: 1,580
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Travel Lodging
• EPS (TTM): -3.02
• Shares Outstanding: 898,782,350
• 10 Day Avg. Volume: 2,553,842
• 30 Day Avg. Volume: 2,078,603
• PEG Ratio: -0.15
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.16
• 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

• Rating: 35 Underperform
• Price Target: ―

Regal Hotels International Holdings Limited faces significant financial difficulties, with declining revenues, high leverage, and liquidity problems. The technical indicators suggest a negative market sentiment, with the stock trading below major moving averages. Additionally, the negative P/E ratio and lack of dividend yield further highlight valuation concerns. These factors collectively contribute to a low overall stock score.

Regal Hotels International Holdings Limited Business Overview & Revenue Model

Company Description

Regal Hotels International Holdings Limited (0078) is a prominent hotel group based in Hong Kong, operating a diverse portfolio of hotels across Asia, including Hong Kong, mainland China, and other regions. The company is involved in the hospitality and real estate sectors, offering luxury accommodations, food and beverage services, and event spaces. Regal Hotels is known for its commitment to providing exceptional guest experiences through its range of hotels and resorts.

How the Company Makes Money

Regal Hotels International Holdings Limited generates revenue primarily through its hotel operations. Key revenue streams include room bookings, food and beverage sales, and event hosting services. The company also benefits from its real estate investments, which include residential and commercial properties. Strategic partnerships with travel agencies, corporate clients, and online booking platforms further enhance its revenue generation capabilities. Additionally, the company's loyalty programs and marketing initiatives help attract and retain guests, contributing to its overall earnings.

Regal Hotels International Holdings Limited Financial Statement Overview

Summary

Regal Hotels International Holdings Limited is experiencing financial difficulties across all verticals. The income statement reveals declining revenues and persistent losses, the balance sheet indicates high leverage and declining equity, while the cash flow statement reflects liquidity issues. Collectively, these factors suggest significant financial instability and challenges in improving profitability and cash flow management.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.83B	1.79B	1.83B	986.60M	678.70M
	Gross Profit
687.80M	652.30M	234.00M	-301.60M	-436.70M
	EBIT
-1.31B	-800.30M	-23.10M	-583.80M	-647.20M
	EBITDA
-706.40M	-181.70M	636.00M	228.00M	-112.30M
	Net Income Common Stockholders
-2.60B	-1.79B	-473.10M	-494.40M	-999.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
527.90M	2.03B	3.68B	4.26B	4.69B
	Total Assets
24.97B	28.52B	30.25B	30.80B	32.46B
	Total Debt
15.61B	16.19B	17.34B	16.98B	17.77B
	Net Debt
15.19B	15.61B	16.42B	15.56B	15.11B
	Total Liabilities
16.76B	17.41B	18.59B	18.40B	19.04B
	Stockholders Equity
8.17B	10.93B	11.33B	11.94B	12.81B
Cash Flow		Free Cash Flow
0.00	499.90M	-163.30M	-597.80M	-1.35B
	Operating Cash Flow
428.60M	556.10M	-103.30M	-86.70M	-502.70M
	Investing Cash Flow
0.00	-112.60M	-567.50M	516.20M	10.70M
	Financing Cash Flow
0.00	-886.00M	238.40M	-963.30M	41.80M

Regal Hotels International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.66 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.65, and below the 200-day MA of 1.95, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 64.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
0177	81 Outperform	$80.43B	10.49	13.04%	4.67%	61.18%	9.48%
0101	80 Outperform	$32.48B	14.62	1.63%	11.91%	9.02%	-47.36%
0398	72 Outperform	HK$1.83B	7.88	12.68%	0.79%	-7.42%	-17.86%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
0097	54 Neutral	€414.44M	―	-11.10%	―	-1.02%	-73.73%
0075	39 Underperform	$151.12M	1.67	-0.39%	―	-41.38%	86.97%
0078	35 Underperform	HK$593.20M	―	-36.48%	―	1.87%	-42.24%

Regal Hotels International Holdings Limited Corporate Events

Regal Hotels Announces Closure of Register for AGM

Regal Hotels International Holdings Limited has announced the closure of its Register of Members for the upcoming Annual General Meeting (AGM) scheduled for June 10, 2025. This closure, from June 5 to June 10, 2025, is to ascertain shareholders’ entitlement to attend and vote at the AGM, impacting shareholders who need to ensure their transfers are lodged by June 4, 2025.

Regal Hotels Announces 2025 Annual General Meeting Details

Regal Hotels International Holdings Limited has announced the date and agenda for its 2025 Annual General Meeting, which will be held on June 10, 2025, at the Regal Hongkong Hotel. Key items on the agenda include the review of financial statements, election of directors, and resolutions to authorize the purchase and issuance of ordinary shares, reflecting the company’s strategic focus on maintaining shareholder value and operational flexibility.

Regal Hotels Reports Increased Losses Amidst Steady Hotel Operations

Regal Hotels International Holdings Limited announced a consolidated loss of HK$2,597.8 million for the year ending December 31, 2024, a significant increase from the previous year’s loss. This was largely due to high finance costs, fair value and impairment losses on properties and financial assets, and depreciation charges. Despite these challenges, the company’s hotel operations in Hong Kong showed steady performance, with a 10.1% increase in net hotel income and a 30.9% rise in revenue per available room at the Regala Skycity Hotel. The strategic location of Regala Skycity Hotel at Hong Kong International Airport is expected to contribute to substantial recurring revenues as the area develops.

Regal Hotels Issues Profit Warning Amid Financial Challenges

Regal Hotels International Holdings Limited has issued a profit warning, indicating an expected net loss of approximately HK$2,598 million for the year ending December 31, 2024, compared to a loss of HK$1,791.9 million the previous year. Despite a steady operation and a 10% increase in net hotel income, the company faces significant financial challenges due to high finance costs and a substantial fair value loss from its investment in Cosmopolitan International Holdings Limited. Additionally, depreciation charges on its hotel properties have adversely affected financial results, leading to an increased loss for the year.

Regal Hotels Schedules Board Meeting to Approve Year-End Results

Regal Hotels International Holdings Limited has announced a board meeting scheduled for March 28, 2025, to approve the publication of its final results for the year ending December 31, 2024. This meeting is significant as it will address the company’s financial performance and related matters, potentially impacting its strategic direction and stakeholder interests.