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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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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
HK$0.09
▼(-24.17% Downside)
Action:Reiterated
Date:07/14/26
The score is held down primarily by weak financial performance—shrinking revenue, sharply negative margins, persistent cash burn, and materially higher leverage—indicating elevated financial risk. Technicals show only a modest short-term rebound while the longer-term trend remains negative, and valuation metrics are not supportive because earnings are negative and no dividend yield is provided.
Positive Factors
Sizable asset base
A roughly 5.0B asset base provides a durable cushion and collateral that supports refinancing, operational continuity, or restructuring options. This scale helps preserve recovery optionality over months if management executes asset-led deleveraging or working-capital fixes.
Negative Factors
Severe margin collapse
Rapid gross margin compression to ~4.9% implies structural pricing pressure or cost escalation. Such erosion materially reduces operating leverage and resilience, meaning even stable revenues may not translate to profits without lasting cost or pricing remediation.
Read all positive and negative factors
Positive Factors
Negative Factors
Sizable asset base
A roughly 5.0B asset base provides a durable cushion and collateral that supports refinancing, operational continuity, or restructuring options. This scale helps preserve recovery optionality over months if management executes asset-led deleveraging or working-capital fixes.
Read all positive factors

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

Royale Home Holdings Limited Business Overview & Revenue Model

Company Description
Royale Home Holdings Limited operates as an investment holding entity with a primary focus on the manufacturing and sale of furniture within mainland China. The company diversifies its activities across several key segments, including the producti...
How the Company Makes Money
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Royale Home Holdings Limited Financial Statement Overview

Summary
Financial performance is severely pressured: revenue declined further in 2025 (down 15.1% YoY), margins collapsed (gross margin ~4.9%), and losses are very large (net margin about -158%) with negative operating and free cash flow (FCF about -494M). Balance sheet risk also rose as leverage increased materially (debt-to-equity ~5.8x) alongside equity erosion.
Income Statement
12
Very Negative
Balance Sheet
24
Negative
Cash Flow
18
Very Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue424.12M559.28M910.82M1.70B1.53B
Gross Profit-29.79M37.68M109.02M245.72M318.23M
EBITDA-284.87M-204.33M-258.42M161.42M364.57M
Net Income-670.86M-355.82M-421.60M5.59M76.90M
Balance Sheet
Total Assets5.01B5.35B5.84B6.13B6.30B
Cash, Cash Equivalents and Short-Term Investments101.11M21.76M50.16M409.27M156.93M
Total Debt3.32B3.12B2.77B3.03B2.66B
Total Liabilities3.79B3.81B3.87B3.71B3.57B
Stockholders Equity636.49M1.38B1.78B2.28B2.58B
Cash Flow
Free Cash Flow-494.09M-242.43M-93.48M-286.85M-82.96M
Operating Cash Flow-482.43M-240.28M-32.53M-146.36M16.91M
Investing Cash Flow45.75M2.00M-182.36M-289.05M-417.50M
Financing Cash Flow502.50M223.05M-116.52M706.58M308.44M

Royale Home Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.12
Price Trends
50DMA
0.09
Positive
100DMA
0.10
Negative
200DMA
0.12
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
55.22
Neutral
STOCH
59.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1198, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.09, and below the 200-day MA of 0.12, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 59.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
68
Neutral
HK$205.74B9.9315.65%5.20%2.10%-0.45%
64
Neutral
HK$11.65B6.4513.03%5.53%-2.80%-12.13%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
HK$445.65M10.874.84%7.24%-6.53%-49.31%
57
Neutral
HK$262.50M4.356.01%7.76%14.80%-56.27%
49
Neutral
HK$339.87M3.342.81%-5.88%
45
Neutral
HK$283.24M-0.35-40.16%-27.42%-80.52%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1198
Royale Home Holdings Limited
0.09
-0.19
-67.37%
HK:1373
International Housewares Retail Co
0.64
-0.20
-23.63%
HK:1999
Man Wah Holdings
3.03
-1.15
-27.46%
HK:1418
Sinomax Group Ltd.
0.15
-0.14
-47.92%
HK:2222
NVC International Holdings Ltd.
0.67
-0.06
-8.22%
HK:6690
Haier Smart Home Co., Ltd. Class H
19.94
-3.81
-16.04%

Royale Home Holdings Limited Corporate Events

Royale Home Wins Unanimous Shareholder Backing at 2026 AGM
Jun 16, 2026
Royale Home Holdings Limited reported that all resolutions tabled at its annual general meeting on 16 June 2026 were passed by shareholders through poll voting. The meeting covered routine corporate matters, with no shareholders required to abstai...
Royale Home Moves to Modernize Articles Ahead of New Market Regime
May 22, 2026
Royale Home Holdings Limited plans to overhaul its articles of association to align with Hong Kong’s evolving listing and corporate governance framework, particularly around hybrid meetings, electronic voting and digital dissemination of cor...
Royale Home Sets June 2026 AGM to Renew Board and Secure Share Issuance Mandate
May 22, 2026
Royale Home Holdings Limited has called its annual general meeting for 16 June 2026 in Guangzhou, where shareholders will review the audited financial statements for the year ended 31 December 2025 and consider the re-election of board members, in...
Royale Home Extends Share Award Plan and Limits It to Existing Shares
May 12, 2026
Royale Home Holdings Limited has extended the life of its Performance Share Award Plan by five years to 12 May 2031 and restructured it so that awards will be satisfied solely through purchases of existing shares on the market. The move removes an...
Royale Home Signs Connected Lease for Guangdong Production Plant
May 6, 2026
Royale Home Holdings’ indirect wholly owned unit Qingyuan Yuyuan has entered into a three-year lease for a 17,363-square-metre production plant in Yingde, Qingyuan, Guangdong, from Hengcheng, an indirect subsidiary of its controlling shareho...
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: Jul 14, 2026