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Royale Home Holdings Limited (HK:1198)
:1198
Hong Kong Market

Royale Home Holdings Limited (1198) AI Stock Analysis

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HK:1198

Royale Home Holdings Limited

(1198)

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Underperform 39 (OpenAI - 4o)
Rating:39Underperform
Price Target:
HK$0.12
▲(2.50% Upside)
The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, significant losses, and high leverage. Technical analysis also indicates bearish trends, with the stock trading below key moving averages and showing oversold conditions. Valuation metrics are unfavorable due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest a high-risk investment with potential for further decline unless significant improvements are made.
Positive Factors
Strategic Partnerships
These partnerships improve operational efficiency and expand market presence, contributing to long-term revenue growth and competitive advantage.
Revenue Streams
Diverse revenue streams from sales, leasing, and development provide a stable income base, reducing reliance on any single market segment.
Market Focus
Targeting both residential and commercial sectors allows the company to capitalize on varied market demands, enhancing resilience to sector-specific downturns.
Negative Factors
High Leverage
Substantial leverage increases financial risk, potentially limiting flexibility in capital allocation and increasing vulnerability to interest rate hikes.
Declining Revenues
Consistent revenue decline suggests challenges in market competitiveness and demand, potentially impacting long-term growth and profitability.
Negative Cash Flow
Negative cash flow signals poor cash management, risking liquidity and operational sustainability, which could hinder strategic investments and growth.

Royale Home Holdings Limited (1198) vs. iShares MSCI Hong Kong ETF (EWH)

Royale Home Holdings Limited Business Overview & Revenue Model

Company DescriptionRoyale Home Holdings Limited, an investment holding company, engages in the manufacture and sale of furniture in the People's Republic of China. The company operates through Manufacture and Sale of Furniture; Development Properties for Sales and Property Investments; Hotel Operations; and Trading. It is also involved in the trading of commodities; rental of properties; manufacture and sale of foam; provision of decoration construction services; and sales services of upholstered furniture. The company was formerly known as Royale Furniture Holdings Limited and changed its name to Royale Home Holdings Limited in June 2020. Royale Home Holdings Limited was founded in 1997 and is headquartered in Tsim Sha Tsui East, Hong Kong.
How the Company Makes MoneyThe company generates revenue through multiple streams, primarily from the sale and leasing of residential and commercial properties. Royale Home Holdings earns substantial income from property development projects, where it invests in land acquisition and construction, selling the completed units at a profit. Additionally, the company benefits from rental income as it manages a portfolio of properties for long-term investment. Strategic partnerships with construction firms and real estate agencies further enhance its market reach and operational efficiency, contributing to its overall earnings.

Royale Home Holdings Limited Financial Statement Overview

Summary
The company is facing severe financial challenges, including declining revenues, significant losses, high leverage, and poor cash flow generation. These issues indicate a need for strategic restructuring to stabilize its financial position.
Income Statement
The company has experienced significant revenue decline over the past few years, with a notable negative net profit margin due to substantial losses. The gross profit margin has also deteriorated, reflecting challenges in maintaining cost efficiency. These factors highlight a weak income statement performance, marked by declining revenue growth and profitability.
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, indicating substantial leverage and financial risk. The equity ratio has decreased over time, suggesting weakened financial stability. Return on equity has been negative due to continuous losses, which further undermines shareholder value. Overall, the balance sheet reflects financial vulnerability.
Cash Flow
The cash flow statement reveals negative free cash flow and operating cash flow over recent periods, indicating cash constraints. The inability to generate positive free cash flow poses a risk to liquidity and operational sustainability. The weak cash flow metrics signify poor cash management and financial health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue486.54M559.28M910.82M1.70B1.53B1.44B
Gross Profit29.32M37.68M109.02M245.72M318.23M159.00M
EBITDA-254.95M-204.33M-258.42M161.42M364.57M1.16B
Net Income-497.10M-355.82M-421.60M5.59M76.90M714.78M
Balance Sheet
Total Assets5.38B5.35B5.84B6.13B6.30B4.81B
Cash, Cash Equivalents and Short-Term Investments51.23M21.76M50.16M409.27M156.93M236.93M
Total Debt3.50B3.12B2.77B3.03B2.66B924.09M
Total Liabilities4.11B3.81B3.87B3.71B3.57B1.81B
Stockholders Equity1.10B1.38B1.78B2.28B2.58B2.87B
Cash Flow
Free Cash Flow-121.22M-242.43M-93.48M-286.85M-82.96M-159.71M
Operating Cash Flow-120.14M-240.28M-32.53M-146.36M16.91M204.50M
Investing Cash Flow999.69K2.00M-182.36M-289.05M-417.50M-921.40M
Financing Cash Flow111.53M223.05M-116.52M706.58M308.44M511.53M

Royale Home Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.12
Price Trends
50DMA
0.13
Negative
100DMA
0.17
Negative
200DMA
0.22
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
43.17
Neutral
STOCH
25.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1198, the sentiment is Negative. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1198.

Royale Home Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$1.91B9.6221.21%4.75%4.50%4.18%
73
Outperform
HK$411.25M4.0010.72%7.76%-1.05%-2.97%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
44
Neutral
HK$148.31M-5.41-50.43%79.67%
41
Neutral
HK$76.58M-0.04-72.73%-764.81%
40
Neutral
HK$541.95M-11.32-15.28%71.04%
39
Underperform
HK$324.82M-0.63-36.67%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1198
Royale Home Holdings Limited
0.13
-0.13
-50.00%
HK:1418
Sinomax Group Ltd.
0.24
<0.01
0.43%
HK:1575
Morris Home Holdings Limited
0.05
-0.02
-24.59%
HK:2127
Huisen Household International Group Limited
0.02
0.00
0.00%
HK:0776
Imperium Technology Group Limited
1.21
-2.47
-67.12%
HK:0837
Carpenter Tan Holdings Limited
7.68
2.18
39.64%

Royale Home Holdings Limited Corporate Events

Royale Home Completes Major Disposals of SCFL Stake and Hengcheng Subsidiary
Dec 29, 2025

Royale Home Holdings Limited has completed two very substantial and connected disposals involving the sale of its entire equity interest in SCFL and the disposal of its subsidiary Hengcheng, following shareholder approvals and satisfaction or waiver of all conditions precedent under the relevant disposal agreements. With completion on 29 December 2025, the group no longer holds any stake in SCFL, Hengcheng has ceased to be a subsidiary and will no longer be consolidated into the group’s financial statements, signalling a significant reshaping of the company’s asset base and business structure, with the company indicating that further updates will be provided on its transition plan as material developments arise.

The most recent analyst rating on (HK:1198) stock is a Sell with a HK$0.12 price target. To see the full list of analyst forecasts on Royale Home Holdings Limited stock, see the HK:1198 Stock Forecast page.

Royale Home Sets Up Nomination Committee to Strengthen Board Governance
Dec 19, 2025

Royale Home Holdings Limited has formally established a Nomination Committee under its board of directors, setting out detailed terms of reference to strengthen governance around board appointments and structure. The committee will comprise at least three members, with a majority being independent non-executive directors and at least one member of a different gender, and will be responsible for reviewing the board’s composition and skills, identifying and recommending candidates for directorships, assessing the independence of independent non-executive directors, and overseeing succession planning for key roles such as the chairman and chief executive officer. Empowered to obtain professional advice at the company’s expense and supported with sufficient resources, the Nomination Committee will meet at least annually, reflecting a more structured and transparent approach to board oversight that aims to enhance accountability and align the company’s governance framework with best practices for listed companies.

The most recent analyst rating on (HK:1198) stock is a Sell with a HK$0.12 price target. To see the full list of analyst forecasts on Royale Home Holdings Limited stock, see the HK:1198 Stock Forecast page.

Royale Home Holdings Updates Nomination Committee in Governance Shift
Dec 5, 2025

Royale Home Holdings Limited announced a change in the composition of its Nomination Committee in response to the revised Corporate Governance Code effective from July 2025. Ms. Yang Ying, a non-executive director, has been appointed to the committee, while Mr. Chan Wing Tak Kevin, an independent non-executive director, has stepped down, effective December 5, 2025. This change reflects the company’s commitment to aligning with updated governance standards, potentially impacting its operational governance and stakeholder relations.

The most recent analyst rating on (HK:1198) stock is a Sell with a HK$0.12 price target. To see the full list of analyst forecasts on Royale Home Holdings Limited stock, see the HK:1198 Stock Forecast page.

Royale Home Holdings Limited Announces Board Composition and Committee Roles
Dec 5, 2025

Royale Home Holdings Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board is chaired by Mr. Lin Ruhai, who also serves as the Chief Executive Officer. The announcement also details the membership of the board’s three committees: Audit, Remuneration, and Nomination, highlighting the roles of various directors within these committees. This update reflects the company’s governance structure, which is crucial for stakeholders to understand the leadership and decision-making framework within the organization.

The most recent analyst rating on (HK:1198) stock is a Sell with a HK$0.12 price target. To see the full list of analyst forecasts on Royale Home Holdings Limited stock, see the HK:1198 Stock Forecast page.

Royale Home Holdings Approves Key Disposals at EGM
Nov 28, 2025

Royale Home Holdings Limited, a company incorporated in the Cayman Islands, announced the successful passage of an ordinary resolution at its Extraordinary General Meeting (EGM) held on November 28, 2025. The resolution, which was approved by the independent shareholders, pertains to the SCFL and Hengcheng Equity Transfer Agreements, allowing the company to proceed with the proposed disposals. This decision reflects the company’s strategic move to streamline its operations and potentially enhance its market positioning. The approval was unanimous among the voting shareholders, indicating strong support for the company’s strategic direction.

The most recent analyst rating on (HK:1198) stock is a Sell with a HK$0.12 price target. To see the full list of analyst forecasts on Royale Home Holdings Limited stock, see the HK:1198 Stock Forecast page.

Royale Home Holdings Limited Announces EGM for Strategic Equity Disposals
Nov 10, 2025

Royale Home Holdings Limited has announced an extraordinary general meeting to discuss and potentially approve the disposal of equity interests in SCFL and Hengcheng. This move is part of the company’s strategic efforts to streamline operations, which could impact its market positioning and shareholder value.

Royale Home Holdings Delays Circular Dispatch for Major Disposals
Oct 17, 2025

Royale Home Holdings Limited, a company incorporated in the Cayman Islands, announced a delay in the dispatch of a circular related to substantial disposals and connected transactions involving SCFL and Hengcheng. The circular, initially expected to be sent to shareholders by 17 October 2025, will now be postponed to on or before 14 November 2025 due to the need for additional preparation time. This delay may impact the company’s timeline for completing these significant transactions, potentially affecting its strategic positioning and stakeholder expectations.

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: Nov 15, 2025