Royale Home Holdings Limited (1198) AI Stock Analysis

• Market Cap: HK$337.81M
• Dividend Yield: N/A
• Average Volume (3M): 31.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 949
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.12
• Shares Outstanding: 2,598,561,300
• 10 Day Avg. Volume: 59,875
• 30 Day Avg. Volume: 31,247
• PEG Ratio: 0.17
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -2.96
• 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: 39 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

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.

Royale Home Holdings Limited Business Overview & Revenue Model

Company Description

Royale Home Holdings Limited (1198) is a leading property investment and development company based in Hong Kong. The company primarily focuses on the residential and commercial real estate sectors, aiming to capitalize on growth opportunities in the rapidly evolving property market. Royale Home Holdings engages in various activities, including property acquisition, development, and management, providing high-quality living and working spaces that meet the demands of its clientele.

How the Company Makes Money

The 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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	486.54M	559.28M	910.82M	1.70B	1.53B	1.44B
Gross Profit	29.32M	37.68M	109.02M	245.72M	318.23M	159.00M
EBITDA	-254.95M	-204.33M	-258.42M	161.42M	364.57M	1.16B
Net Income	-497.10M	-355.82M	-421.60M	5.59M	76.90M	714.78M
Balance Sheet
Total Assets	5.38B	5.35B	5.84B	6.13B	6.30B	4.81B
Cash, Cash Equivalents and Short-Term Investments	51.23M	21.76M	50.16M	409.27M	156.93M	236.93M
Total Debt	3.50B	3.12B	2.77B	3.03B	2.66B	924.09M
Total Liabilities	4.11B	3.81B	3.87B	3.71B	3.57B	1.81B
Stockholders Equity	1.10B	1.38B	1.78B	2.28B	2.58B	2.87B
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	-146.36M	16.91M	204.50M
Investing Cash Flow	999.69K	2.00M	-182.36M	-289.05M	-417.50M	-921.40M
Financing Cash Flow	111.53M	223.05M	-116.52M	706.58M	308.44M	511.53M

Royale Home Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.15 is above the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.17, and below the 200-day MA of 0.24, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 5.59 is Positive, neither overbought nor oversold. The STOCH value of 9.06 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0837	78 Outperform	HK$1.91B	9.59	21.21%	4.78%	4.50%	4.18%
1418	73 Outperform	HK$390.25M	3.79	10.72%	7.20%	-1.05%	-2.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1575	45 Neutral	HK$154.76M	―	―	―	-50.43%	79.67%
2127	41 Neutral	HK$76.58M	―	―	―	-72.73%	-764.81%
0776	40 Neutral	HK$546.43M	―	―	―	-15.28%	71.04%
1198	39 Underperform	HK$337.81M	―	-36.67%	―	―	―

Royale Home Holdings Limited Corporate Events

Royale Home Holdings Limited Announces EGM for Strategic Equity Disposals

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

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.

Royale Home Holdings Announces Major Subsidiary Disposals

Royale Home Holdings Limited has announced two substantial disposals involving its subsidiaries. The company has agreed to sell its 18.06% equity interest in SCFL to Science City for RMB416,752,500, and the entire equity interest in Hengcheng to SC Development for RMB11,338,566.62. These transactions are significant due to their scale and the involvement of connected parties, requiring adherence to Hong Kong’s Listing Rules, including independent shareholder approval. The disposals are expected to streamline Royale Home’s operations by transferring non-core assets and liabilities, potentially impacting its financial structure and market positioning.

Royale Home Holdings Reports Increased Losses in H1 2025

Royale Home Holdings Limited reported its unaudited interim results for the first half of 2025, revealing a significant decline in revenue and an increased loss compared to the same period in 2024. The company’s revenue dropped from RMB 253,168,000 in 2024 to RMB 174,036,000 in 2025, while the loss for the period widened to RMB 265,063,000, attributed to higher finance costs and a negative share of results from associates. This financial performance may impact the company’s market positioning and stakeholder confidence.

Royale Home Holdings to Review Interim Results and Dividend

Royale Home Holdings Limited has announced a board meeting scheduled for August 27, 2025, to discuss and approve the interim financial results for the first half of the year and consider the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial health and strategic decisions, potentially impacting stakeholders’ perceptions and the company’s market positioning.