Realord Group Holdings Limited (1196) AI Stock Analysis

• Market Cap: HK$17.15B
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -53.09%
• EPS Growth: -74.54%
• Country: HK
• Employees: 183
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.33
• Shares Outstanding: 1,442,309,900
• 10 Day Avg. Volume: 1,567,250
• 30 Day Avg. Volume: 1,721,224
• PEG Ratio: <0.01
• Price to Book (P/B): 3.95
• Price to Sales (P/S): 24.89
• P/FCF Ratio: 809.14
• 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: 45 Neutral
• Price Target: HK$11.50 ▼(-4.01% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative profitability, and liquidity concerns. Technical analysis provides some stability with neutral indicators, but the negative P/E ratio and lack of dividend yield highlight valuation challenges. The absence of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Diversified Business Model

The diversified business model allows Realord Group to mitigate risks associated with market volatility in any single sector, providing a stable revenue base over time.

Strategic Partnerships

Strategic partnerships enhance service offerings and market reach, potentially leading to increased revenue streams and competitive advantages in various sectors.

Asset Base

A strong asset base can provide financial stability and support future growth initiatives, even amid high leverage and declining equity.

Negative Factors

Declining Revenue

Negative revenue growth indicates challenges in maintaining sales momentum, which could impact long-term profitability and market position.

High Leverage

High leverage increases financial risk and can limit the company's ability to invest in growth opportunities, affecting long-term financial health.

Negative Cash Flow

Negative cash flow highlights liquidity concerns, which can hinder the company's ability to fund operations and invest in future growth.

Realord Group Holdings Limited Business Overview & Revenue Model

Company Description

Realord Group Holdings Limited, an investment holding company, engages in the commercial printing, hangtag, motor vehicles parts, financial service, trading, property, and environmental protection businesses in the People's Republic of China, Hong Kong, Japan, and internationally. The company's Commercial Printing segment provides financial printing services, digital printing and other related services. Its Hangtag segment sells hangtags, labels, shirt paper boards, and plastic bags to manufacturers of consumer products. The company's Motor Vehicle Parts segment distributes and sells motor vehicle parts. Its Financial Services segment provides corporate finance advisory, asset management, securities brokerage services, margin financing, and money lending services. Its Property segment develops, operates, and invests in commercial properties. The company's Environmental Protection segment is involved in dismantling and trading of scrap materials. Its Department Store segment operates department stores, which offers various consumer products, securities trading, rental income from sublease of properties, and the provision of general and life insurances. The LAC segment engages in the development of project, which includes school campuses, apartments for student, commercial complex, hotel resorts, residential villas, and other ancillary facilities. It also provides financial leasing and conference services; trades in electronic products and computer components; and develops and sells e-commerce platform. The company was formerly known as Cheong Ming Investments Limited and changed its name to Realord Group Holdings Limited in September 2014. The company is headquartered in Central, Hong Kong. Realord Group Holdings Limited is a subsidiary of Manureen Holdings Limited.

How the Company Makes Money

Realord Group Holdings Limited generates revenue through several key streams. The primary source of income comes from its property investment and development activities, where the company earns rental income from its commercial and residential properties, as well as profits from property sales. Additionally, the trading and manufacturing segments contribute to its revenue by supplying electronics and consumer goods to various markets. The company also engages in financial services, providing investment and asset management services, which further diversify its income sources. Strategic partnerships with other businesses in trading and logistics enhance its operational capabilities and market reach, contributing to its overall earnings.

Realord Group Holdings Limited Financial Statement Overview

Summary

Realord Group Holdings Limited is facing significant financial challenges. The income statement is marked by declining revenues and negative profitability, while the balance sheet shows high leverage and declining equity. Cash flow problems exacerbate these issues, indicating potential liquidity constraints. Strategic adjustments are necessary to improve financial stability and performance.

Income Statement

The income statement shows significant volatility in revenue and profitability. Gross profit margin has decreased from 24.4% in 2023 to 31.3% in 2024. Net profit margin turned negative in 2024 at -207%, indicating a severe decline from 9.6% a year prior. Revenue growth has been negative in recent periods, highlighting challenges in maintaining sales momentum. Additionally, both EBIT and EBITDA margins are negative, further indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of approximately 4.59 in 2024, which suggests potential financial risk. There has been a decline in stockholders' equity over the years, from $4.13 billion in 2021 to $2.7 billion in 2024. The equity ratio dropped to 14.2%, reflecting increased reliance on debt. However, the company maintains significant total assets, providing some balance sheet strength.

Cash Flow

Cash flow statements indicate strained liquidity with negative operating and free cash flows in recent years. Operating cash flow was zero in 2024, and free cash flow has been consistently negative, demonstrating challenges in generating cash from operations. The absence of positive cash flow growth highlights liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	355.84M	428.35M	601.22M	1.20B	1.20B	869.34M
Gross Profit	74.79M	152.94M	193.61M	287.40M	272.79M	201.10M
EBITDA	-79.50M	-141.16M	1.20B	1.22B	1.22B	2.14B
Net Income	-850.41M	-886.67M	76.69M	112.79M	122.20M	885.18M
Balance Sheet
Total Assets	19.52B	18.99B	20.48B	19.87B	18.75B	16.72B
Cash, Cash Equivalents and Short-Term Investments	108.95M	99.13M	221.79M	243.13M	310.85M	1.28B
Total Debt	12.50B	12.40B	13.16B	12.66B	11.71B	10.89B
Total Liabilities	15.77B	14.92B	15.38B	14.70B	13.48B	12.31B
Stockholders Equity	2.39B	2.70B	3.59B	3.61B	4.13B	3.51B
Cash Flow
Free Cash Flow	-310.50M	13.18M	-16.91M	-1.33B	-209.84M	-190.61M
Operating Cash Flow	-307.92M	15.76M	-13.94M	-1.31B	-198.44M	-167.65M
Investing Cash Flow	204.68M	198.88M	79.09M	-16.46M	-266.87M	13.82M
Financing Cash Flow	112.90M	-336.94M	-83.48M	1.28B	-584.43M	835.30M

Realord Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1196, the sentiment is Positive. The current price of 11.98 is above the 20-day moving average (MA) of 11.75, below the 50-day MA of 12.07, and above the 200-day MA of 9.51, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1196.

Realord Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6805	79 Outperform	HK$2.78B	19.52	12.28%	9.96%	16.00%	32.03%
1065	78 Outperform	HK$9.81B	7.55	8.29%	4.29%	1.66%	-6.08%
1330	74 Outperform	HK$9.56B	9.70	8.62%	6.16%	-0.91%	18.25%
1272	72 Outperform	HK$3.47B	7.44	5.55%	7.61%	-4.41%	-34.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0895	46 Neutral	HK$4.98B	-2.25	-27.89%	―	-3.21%	-34.90%
1196	45 Neutral	HK$17.15B	-20.29	-31.35%	―	-53.09%	-74.54%

Realord Group Holdings Limited Corporate Events

Realord Group Settles Winding-Up Petition Against Subsidiary

Realord Group Holdings Limited announced the withdrawal of a winding-up petition against its subsidiary, Realord International Financial Limited (RIF), after reaching a settlement with the petitioner. The settlement involves RIF paying a total of HK$12 million in installments, including a charitable donation, leading to a joint application for the petition’s withdrawal in the High Court of Hong Kong.

Realord Group Faces Winding-Up Petition Against Subsidiary

Realord Group Holdings Limited announced that a winding-up petition has been filed against its subsidiary, Realord International Financial Limited, by Ms. Lung Chung Mei Beatrice in the High Court of Hong Kong. The petition concerns an outstanding payment of HK$12,000,000 related to a sale and purchase agreement from 2018. Despite the legal proceedings, the company believes the claimed amount will not materially impact its operations or financial position and is seeking to resolve the dispute amicably while keeping shareholders informed.