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

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HK:1198

Royale Home Holdings Limited

(1198)

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Underperform 37 (OpenAI - 4o)
Rating:37Underperform
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score is heavily impacted by the company's poor financial performance, weak technical indicators, and unattractive valuation metrics. The lack of earnings call data and corporate events further limits any positive outlook.

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 (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 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
25
Negative
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
30
Negative
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
20
Very Negative
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 Price0.15
Price Trends
50DMA
0.21
Negative
100DMA
0.25
Negative
200DMA
0.25
Negative
Market Momentum
MACD
-0.02
Negative
RSI
15.55
Positive
STOCH
43.70
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 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.21, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 15.55 is Positive, neither overbought nor oversold. The STOCH value of 43.70 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
66
Neutral
HK$2.06B10.3621.21%4.39%4.50%4.18%
62
Neutral
HK$409.50M4.0610.72%7.83%-1.05%-2.97%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
47
Neutral
HK$582.26M-15.28%71.04%
44
Neutral
HK$167.66M-50.43%79.67%
41
Neutral
HK$76.58M-72.73%-764.81%
37
Underperform
HK$384.59M-36.67%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1198
Royale Home Holdings Limited
0.15
-0.18
-54.55%
HK:1418
Sinomax Group Ltd.
0.23
0.00
0.00%
HK:1575
Morris Home Holdings Limited
0.05
-0.02
-28.57%
HK:2127
Huisen Household International Group Limited
0.02
-0.04
-66.67%
HK:0776
Imperium Technology Group Limited
1.65
-3.33
-66.87%
HK:0837
Carpenter Tan Holdings Limited
8.34
2.80
50.54%

Royale Home Holdings Limited Corporate Events

Royale Home Holdings Limited Announces 2025 AGM and Key Resolutions
Apr 29, 2025

Royale Home Holdings Limited has announced its upcoming annual general meeting scheduled for June 16, 2025, in Hong Kong. The meeting will cover the consideration of the company’s audited financial statements for the year ending December 31, 2024, the re-election of several directors, and the re-appointment of Grant Thornton Hong Kong Limited as the company’s auditor. Additionally, the board will seek approval for the issuance of new shares and other related financial instruments, which could impact the company’s capital structure and shareholder value.

Royale Home Holdings Limited Announces Disposal of Dongma Equity Interest
Apr 28, 2025

Royale Home Holdings Limited has announced the disposal of a 25% equity interest in Dongma, with Yuyuan Real Estate selling to Lvshang Technology for RMB60.0 million. This transaction is classified as a discloseable transaction under the Listing Rules, requiring specific reporting and announcement obligations. The company acknowledged a delay in compliance due to a change in company secretary but has committed to remedial actions to prevent future non-compliance.

Royale Home Holdings Appoints Ms. Zhong Yuhua as Joint Company Secretary
Apr 25, 2025

Royale Home Holdings Limited has appointed Ms. Zhong Yuhua as a joint company secretary effective from April 25, 2025. Ms. Zhong brings over 14 years of experience in legal and compliance, corporate governance, and investor relations, having held various roles in the Science City Group and other companies. Despite not meeting the formal qualifications under the Listing Rules, the company has received a waiver from the Stock Exchange, allowing her appointment due to her relevant experience. This strategic move is expected to strengthen the company’s governance and operational efficiency, with Mr. Cheng continuing as the other joint company secretary to assist Ms. Zhong.

Royale Home Holdings Announces Change in Company Secretary
Apr 15, 2025

Royale Home Holdings Limited has announced a change in its company secretary and authorised representative roles. Mr. Chui See Lai has resigned from these positions effective April 15, 2025, and Mr. Cheng Ching Kit has been appointed as his successor. Mr. Cheng brings over 12 years of experience in corporate secretarial services and holds relevant qualifications and degrees. The board expressed gratitude to Mr. Chui for his contributions and welcomed Mr. Cheng to his new role.

Royale Home Holdings Announces Potential Equity Disposal to Lvshang Technology
Apr 3, 2025

Royale Home Holdings Limited announced the result of a potential disposal of its equity interest in Dongma through a public tender. Lvshang Technology emerged as the successful bidder with a final bidding price of RMB60.0 million. The company plans to enter a formal agreement with Lvshang Technology to transfer the equity interest and complete necessary registrations. However, no binding agreement has been signed yet, and the disposal may not proceed. Stakeholders are advised to exercise caution when dealing with the company’s shares.

Royale Home Holdings Reports Significant Revenue Decline in 2024
Mar 31, 2025

Royale Home Holdings Limited reported its annual results for the year ended December 31, 2024, showing a significant decrease in revenue from RMB 827,916,000 in 2023 to RMB 525,607,000 in 2024. Despite a slight increase in gross profit, the company faced a substantial loss for the year, amounting to RMB 348,306,000, attributed to increased finance costs and provisions for expected credit losses. This financial performance may impact the company’s market positioning and stakeholder confidence.

Royale Home Holdings to Review Annual Financial Results and Dividend
Mar 19, 2025

Royale Home Holdings Limited has announced a board meeting scheduled for March 31, 2025, to review and approve the audited consolidated financial results for the year ending December 31, 2024. The meeting will also consider the possibility of declaring a final dividend, which could impact shareholder returns and reflect the company’s financial health.

Royale Home Holdings Limited Announces Change in Share Registrar Office
Feb 28, 2025

Royale Home Holdings Limited announced a change in its Hong Kong branch share registrar and transfer office, effective from March 31, 2025. This operational change is expected to streamline the company’s share registration process, potentially impacting stakeholders by improving efficiency in share transfers and collections.

Royale Home Holdings to Tender 25% Dongma Equity Amid Market Challenges
Feb 19, 2025

Royale Home Holdings Limited announced its intention to dispose of a 25% equity interest in Dongma through a public tender. This decision follows Dongma’s consistent losses since 2021, except for the year 2023, prompting Yuyuan Real Estate, a subsidiary of Royale Home Holdings, to exercise a put option for Lvshang Technology to purchase the equity. The minimum tender price is set at RMB60.0 million, factoring in an agreed annual return rate and a discount due to various economic and market challenges, including the impact of COVID-19, market trends in the environmental protection industry, and the property market downturn in China.

Royale Home Holdings Announces Board Changes
Feb 19, 2025

Royale Home Holdings Limited, a company incorporated in the Cayman Islands, announced changes to its board of directors. Mr. Yao Jingming has resigned from his position as a non-executive director due to other business commitments, and Mr. Yan Weihao has been appointed as the new non-executive director, effective February 19, 2025. Mr. Yan brings experience from various management roles at Science City (Guangzhou) Investment Group Co., Ltd., a controlling shareholder of Royale Home Holdings. This transition is part of the company’s ongoing board restructuring efforts.

Royale Home Holdings Limited Announces Updated Board of Directors and Committee Roles
Feb 19, 2025

Royale Home Holdings Limited, incorporated in the Cayman Islands, has announced an updated list of its board of directors and their roles. The company has designated Mr. Lin Ruhai as Chairman and CEO, with Mr. Tse Kam Pang serving as Co-Chairman. The board includes both executive and non-executive directors. Additionally, the roles within three board committees—Audit, Remuneration, and Nomination—have been specified, with certain directors taking on chairman and member roles in these committees. This organizational update is crucial for stakeholders as it delineates leadership structure, potentially influencing company operations and governance strategies.

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: Oct 02, 2025