Regal Real Estate Investment (1881) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.46
• Revenue Growth: 13.96%
• EPS Growth: -176.96%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.06
• Shares Outstanding: 3,257,431,400
• 10 Day Avg. Volume: 2,139,187
• 30 Day Avg. Volume: 1,012,125
• PEG Ratio: 0.03
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 81.59
• 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: $0.39
• Price Target Upside: -6.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ―

The overall stock score is primarily influenced by the mixed financial performance, which highlights strong revenue growth but notable profitability and cash flow issues. Technical analysis suggests recent positive momentum, though the longer-term trend remains bearish. Valuation concerns due to negative P/E and lack of dividend yield further weigh on 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 associated with its property portfolio. The primary source of income is rental income from residential, commercial, and industrial properties. Additionally, the company profits from property development and sales, where it engages in the construction and subsequent sale of residential or commercial units. Regal Real Estate Investment also earns through property management services, charging fees for the upkeep and administration of properties under its management. Strategic partnerships with financial institutions and real estate developers further bolster its revenue by facilitating large-scale projects and enhancing investment opportunities. The company benefits from favorable market conditions and government policies that support real estate growth, contributing significantly to 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
701.21M	617.76M	616.44M	593.54M	871.40M
	Gross Profit
587.97M	507.99M	600.60M	578.92M	858.10M
	EBIT
568.12M	497.44M	1.23B	758.26M	-2.03B
	EBITDA
575.85M	499.86M	1.23B	765.97M	-2.02B
	Net Income Common Stockholders
-204.40M	265.74M	929.90M	577.09M	-2.31B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.74M	45.88M	141.34M	54.15M	244.02M
	Total Assets
24.23B	24.39B	23.85B	22.91B	22.74B
	Total Debt
10.36B	10.35B	10.20B	10.01B	10.06B
	Net Debt
10.35B	10.30B	10.05B	9.96B	9.82B
	Total Liabilities
11.32B	11.32B	11.04B	10.77B	10.80B
	Stockholders Equity
12.91B	13.07B	12.81B	12.15B	11.93B
Cash Flow		Free Cash Flow
-51.36M	46.36M	296.55M	304.24M	477.85M
	Operating Cash Flow
-50.88M	46.75M	296.67M	304.30M	478.07M
	Investing Cash Flow
-26.21M	-21.24M	-36.10M	-2.77M	-57.30M
	Financing Cash Flow
34.97M	-120.97M	-163.38M	-490.06M	-308.24M

Regal Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.42 is below the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.41, and below the 200-day MA of 0.46, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 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 *	61 Neutral	$2.85B	10.96	0.41%	8438.88%	5.73%	-21.25%
1881	55 Neutral	$1.35B	9.38	-1.57%	―	13.96%	-176.96%
0095	35 Underperform	HK$1.25B	―	-25.08%	―	-39.64%	-125.38%
5C3		€150.15M	―	-5.63%	10.79%	―	―
TNY1		€126.22M	―	-20.46%	7.28%	―	―
HKR		€151.22M	―	-4.52%	1.37%	―	―
0147	42 Neutral	HK$1.02B	―		―	―	―