Regal Real Estate Investment (1881) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: N/A
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 5.54%
• EPS Growth: -592.13%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.16
• Shares Outstanding: 3,257,431,400
• 10 Day Avg. Volume: 2,245,900
• 30 Day Avg. Volume: 2,435,011
• PEG Ratio: 0.04
• Price to Book (P/B): 0.12
• Price to Sales (P/S): 2.18
• P/FCF Ratio: -29.81
• Enterprise Value/Market Cap: 8.73
• Enterprise Value/Revenue: 16.34
• Enterprise Value/Gross Profit: 19.50
• Enterprise Value/Ebitda: 19.86
• 1Y Price Target: $0.47
• Price Target Upside: 16.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$0.50 ▲(25.00% Upside)

The overall stock score is primarily impacted by mixed financial performance, with strong revenue growth offset by net losses and cash flow concerns. Technical analysis indicates potential bearish momentum, and valuation is negatively affected by a lack of profitability and dividend yield. Addressing profitability and improving cash flow generation are critical for enhancing the stock's attractiveness.

Regal Real Estate Investment Business Overview & Revenue Model

Company Description

Regal REIT is a Hong Kong collective investment scheme authorised under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and its Units were listed on The Stock Exchange of Hong Kong Limited on 30th March, 2007. Regal REIT is governed by a trust deed dated 11th December, 2006 (as amended by the first supplemental trust deed dated 2nd March, 2007, the second supplemental trust deed dated 15th May, 2008, the third supplemental trust deed dated 8th May, 2009, the fourth supplemental trust deed dated 23rd July, 2010, the fifth supplemental trust deed dated 3rd May, 2011, the sixth supplemental trust deed dated 21st July, 2011 and the seventh supplemental trust deed dated 14th April, 2015) constituting Regal REIT (the "Trust Deed") and the REIT Code. The principal activity of Regal REIT and its subsidiaries (collectively, the "Group") is to own and invest in income-producing hotels, serviced apartments or commercial properties (including office premises) with the objectives of producing stable and growing distributions to Unitholders and to achieve long-term growth in the net asset value per Unit.

How the Company Makes Money

Regal Real Estate Investment generates revenue through multiple streams primarily centered around real estate activities. The company earns rental income by leasing out its commercial, residential, and retail properties to tenants. Additionally, it engages in property development, where it constructs new buildings or renovates existing structures for sale or lease, thus gaining profits from property sales. The company may also engage in property management services, earning fees for managing real estate assets on behalf of other owners. Strategic partnerships with financial institutions, construction firms, and real estate agencies further enhance its capabilities and revenue potential. Factors such as property market trends, economic conditions, and interest rates significantly influence its earnings.

Regal Real Estate Investment Financial Statement Overview

Summary

Regal Real Estate Investment shows a mixed financial performance. The company benefits from strong revenue growth and high gross margins, but net losses and limited cash flow visibility are major concerns. The balance sheet is stable, though leverage and negative profitability metrics pose risks. Overall, the company needs to address profitability and cash flow generation to improve its financial health.

Income Statement

The company has shown resilience in revenue recovery with a growth rate of 13.5% from 2023 to 2024. However, net profitability is a concern with a negative net profit margin of -29.15% in 2024, primarily due to a significant net loss. Gross profit margin remains high at 83.86%, indicating strong revenue retention. EBIT and EBITDA margins are also robust, but the net loss significantly impacts overall profitability.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 0.80, indicating moderate leverage. Return on equity has turned negative due to the net loss, but the equity ratio remains decent at 53.27%, suggesting a healthy capital structure. The balance sheet stability is a positive, but profitability issues present a risk.

Cash Flow

Cash flow analysis is limited by missing data for 2024. Historically, the free cash flow growth rate was strong, but the lack of current operating cash flow presents a liquidity risk. The company's ability to generate cash relative to net income is uncertain, which could impact financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	705.22M	701.21M	617.76M	616.44M	593.54M	871.40M
Gross Profit	590.96M	587.97M	507.99M	600.60M	578.92M	858.10M
EBITDA	580.25M	575.85M	499.86M	1.23B	765.97M	-2.02B
Net Income	-692.70M	-204.40M	265.74M	929.90M	577.09M	-2.31B
Balance Sheet
Total Assets	23.69B	24.23B	24.39B	23.85B	22.91B	22.74B
Cash, Cash Equivalents and Short-Term Investments	12.49M	3.74M	45.88M	141.34M	54.15M	244.02M
Total Debt	10.34B	10.36B	10.35B	10.20B	10.01B	10.06B
Total Liabilities	11.34B	11.32B	11.32B	11.04B	10.77B	10.80B
Stockholders Equity	12.35B	12.91B	13.07B	12.81B	12.15B	11.93B
Cash Flow
Free Cash Flow	-44.35M	-51.36M	46.36M	296.55M	304.24M	477.85M
Operating Cash Flow	-44.04M	-50.88M	46.75M	296.67M	304.30M	478.07M
Investing Cash Flow	-14.04M	-26.21M	-21.24M	-36.10M	-2.77M	-57.30M
Financing Cash Flow	49.63M	34.97M	-120.97M	-163.38M	-490.06M	-308.24M

Regal Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1881, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.42, and below the 200-day MA of 0.43, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1881.

Regal Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1881	54 Neutral	$1.32B	―	-5.47%	―	5.54%	-592.13%
0480	49 Neutral	€1.63B	―	-3.45%	―	-55.51%	-67.95%
1503	46 Neutral	€1.40B	―	-3.25%	8.62%	-5.78%	61.05%
0978	46 Neutral	€1.35B	―	-20.96%	4.36%	-16.06%	-529.92%
0147	41 Neutral	HK$5.75B	―	―	―	―	―
0095	39 Underperform	HK$1.62B	―	-28.76%	―	-58.04%	-65.03%