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Regal Hotels International Holdings Limited (HK:0078)
:0078

Regal Hotels International Holdings Limited (0078) AI Stock Analysis

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HK

Regal Hotels International Holdings Limited

(Frankfurt:0078)

Rating:35Underperform
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 (0078) vs. iShares MSCI Hong Kong ETF (EWH)

Regal Hotels International Holdings Limited Business Overview & Revenue Model

Company DescriptionRegal 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 MoneyRegal 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
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.83B1.79B1.83B986.60M678.70M
Gross Profit687.80M652.30M234.00M-301.60M-436.70M
EBITDA-706.40M-181.70M636.00M228.00M-112.30M
Net Income-2.60B-1.79B-473.10M-494.40M-999.30M
Balance Sheet
Total Assets24.97B28.52B30.25B30.80B32.46B
Cash, Cash Equivalents and Short-Term Investments527.90M2.03B3.68B4.26B4.69B
Total Debt15.61B16.19B17.34B16.98B17.77B
Total Liabilities16.76B17.41B18.59B18.40B19.04B
Stockholders Equity8.17B10.93B11.33B11.94B12.81B
Cash Flow
Free Cash Flow0.00499.90M-163.30M-597.80M-1.35B
Operating Cash Flow428.60M556.10M-103.30M-86.70M-502.70M
Investing Cash Flow0.00-112.60M-567.50M516.20M10.70M
Financing Cash Flow0.00-886.00M238.40M-963.30M41.80M

Regal Hotels International Holdings Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.65
Price Trends
50DMA
0.57
Positive
100DMA
1.12
Negative
200DMA
1.81
Negative
Market Momentum
MACD
<0.01
Negative
RSI
54.00
Neutral
STOCH
70.09
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 0.65 is above the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.57, and below the 200-day MA of 1.81, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 70.09 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

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
1.84B17.2222.59%6.23%7.40%-35.37%
65
Neutral
HK$2.00B8.492.48%2.76%-22.28%-79.09%
62
Neutral
HK$1.65B20.411.91%1.07%-3.42%28.95%
52
Neutral
HK$644.19M-1.07%16.36%-35.14%
35
Underperform
€584.21M-36.48%1.87%-42.24%
$97.95M3.127.95%3.10%
€26.42M-17.37%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0078
Regal Hotels International Holdings Limited
0.65
-2.25
-77.59%
KCKSF
Keck Seng Investments (Hong Kong)
0.30
0.03
11.11%
HK:1270
Langham Hospitality Investments
0.58
0.03
5.45%
DE:CQA2
Century City International Holdings Limited
0.01
-0.01
-50.00%
HK:0201
Magnificent Hotel Investments Limited
0.07
>-0.01
-12.50%
HK:1221
Sino Hotels (Holdings) Ltd.
1.40
-0.08
-5.41%

Regal Hotels International Holdings Limited Corporate Events

Regal Hotels Announces Closure of Register for AGM
Apr 28, 2025

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
Apr 28, 2025

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
Mar 28, 2025

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
Mar 21, 2025

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
Mar 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025