Regal Hotels International Holdings Limited (0078) AI Stock Analysis

• Market Cap: €539.27M
• Dividend Yield: N/A
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: HK$0.50 ▼(-12.28% 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 (0078) is a prominent hospitality company based in Hong Kong, primarily engaged in the development, management, and operation of hotels and related properties. The company operates a diversified portfolio of hotels under various brand names, catering to both business and leisure travelers. Regal Hotels International focuses on enhancing guest experiences through high-quality service and luxurious accommodations, positioning itself as a key player in the Asia-Pacific hospitality market.

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: 0.57
• 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 0.57 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.60, and below the 200-day MA of 0.81, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.52 is Neutral, neither overbought nor oversold. The STOCH value of 37.90 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$1.69B	16.20	2.49%	1.99%	-7.90%	58.19%
0184	62 Neutral	$765.45M	4.26	5.57%	4.55%	-3.51%	-31.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1270	58 Neutral	HK$1.72B	35.21	0.50%	3.20%	-22.04%	-90.42%
0201	52 Neutral	HK$635.24M	―	-0.66%	―	3.97%	41.51%
0078	40 Neutral	€539.27M	-0.30	-29.62%	―	-0.60%	34.74%
0355	40 Underperform	€228.85M	―	-18.68%	―	-3.51%	-15.27%

Regal Hotels International Holdings Limited Corporate Events

Regal Hotels Completes Major Property Disposal

Regal Hotels International Holdings Limited, along with Century City and Paliburg, has completed the disposal of a property holding company. This transaction marks a significant change in their business structure as the financial results of the disposed company will no longer be part of their consolidated financial statements, potentially impacting their financial reporting and market positioning.

Century City Shareholders Approve Major Property Disposal

Century City International Holdings Limited announced that the ordinary resolution regarding a major transaction, specifically the disposal of a property holding company, was approved by shareholders at the Special General Meeting held on 22 September 2025. This approval signifies a strategic move for the company, potentially impacting its market positioning and operations, as it aligns with the interests of major shareholders and complies with the Listing Rules.

Regal Hotels Sees Reduced Losses and Improved Performance in 2025 Interim Results

Regal Hotels International Holdings Limited reported a significant reduction in losses for the first half of 2025, with a consolidated loss attributable to shareholders of HK$677.6 million compared to HK$1,599.2 million in the same period of 2024. This improvement was largely due to a reversal of fair value losses on financial assets, primarily related to Cosmopolitan International Holdings Limited, and reduced finance costs following a drop in the Hong Kong Interbank Offered Rates. The company’s operating profit before interest, taxation, depreciation, and amortization reached HK$85.4 million, reversing a loss from the previous year. The Regala Skycity Hotel showed steady business performance with improved occupancy and RevPAR, and its operational performance is expected to enhance further with the opening of the second airport terminal.

Regal Hotels Reports Reduced Losses for First Half of 2025

Regal Hotels International Holdings Limited announced an expected consolidated loss of approximately HK$678 million for the first half of 2025, a significant improvement from the HK$1,599.2 million loss in the same period of 2024. This reduction in loss is attributed to a fair value gain on financial assets and lower finance costs due to a drop in the Hong Kong Interbank Offered Rates. Despite the improvement, depreciation charges on hotel properties continue to impact financial results negatively, although they do not affect cash flow. The company’s interim results will be finalized and announced on August 27, 2025.

Regal Hotels Granted Waiver for Circular Dispatch

Regal Hotels International Holdings Limited, along with Paliburg Holdings Limited, announced that they have been granted a waiver by the Stock Exchange of Hong Kong from strict compliance with Rule 14.41(a) of the Listing Rules. This waiver allows additional time for the companies to prepare and dispatch their respective circulars related to the SP Transaction, which includes important financial information. The waiver is conditional on the circulars being dispatched by September 2, 2025, and may be subject to change if the companies’ situations evolve.

Regal Hotels Announces Delay in Circulars for Share Purchase Agreement

Regal Hotels International Holdings Limited, along with Century City International Holdings Limited and Paliburg Holdings Limited, announced a delay in the despatch of circulars related to a Share Purchase Agreement (SP Transaction). The delay is due to the additional time required to prepare financial information and statements, with the new expected date for despatch set for 2 September 2025. This delay has prompted Paliburg and Regal to apply for a waiver to extend the deadline, which may impact the timeline of the transaction and stakeholders’ expectations.

Regal Hotels Announces Board Meeting for Interim Results Approval

Regal Hotels International Holdings Limited has announced a board meeting scheduled for August 27, 2025, to approve and publish the interim results for the first half of the year ending June 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.