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Regal Real Estate Investment Trust (HK:1881)
:1881
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Regal Real Estate Investment (1881) AI Stock Analysis

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HK:1881

Regal Real Estate Investment

(1881)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
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 (1881) vs. iShares MSCI Hong Kong ETF (EWH)

Regal Real Estate Investment Business Overview & Revenue Model

Company DescriptionRegal 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 MoneyRegal 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
65
Positive
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
70
Positive
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue705.22M701.21M617.76M616.44M593.54M871.40M
Gross Profit590.96M587.97M507.99M600.60M578.92M858.10M
EBITDA580.25M575.85M499.86M1.23B765.97M-2.02B
Net Income-692.70M-204.40M265.74M929.90M577.09M-2.31B
Balance Sheet
Total Assets23.69B24.23B24.39B23.85B22.91B22.74B
Cash, Cash Equivalents and Short-Term Investments12.49M3.74M45.88M141.34M54.15M244.02M
Total Debt10.34B10.36B10.35B10.20B10.01B10.06B
Total Liabilities11.34B11.32B11.32B11.04B10.77B10.80B
Stockholders Equity12.35B12.91B13.07B12.81B12.15B11.93B
Cash Flow
Free Cash Flow-44.35M-51.36M46.36M296.55M304.24M477.85M
Operating Cash Flow-44.04M-50.88M46.75M296.67M304.30M478.07M
Investing Cash Flow-14.04M-26.21M-21.24M-36.10M-2.77M-57.30M
Financing Cash Flow49.63M34.97M-120.97M-163.38M-490.06M-308.24M

Regal Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.40
Price Trends
50DMA
0.42
Negative
100DMA
0.43
Negative
200DMA
0.43
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
44.05
Neutral
STOCH
29.63
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
54
Neutral
$1.32B-5.47%5.54%-592.13%
49
Neutral
€1.63B-3.45%-55.51%-67.95%
46
Neutral
€1.40B-3.25%8.62%-5.78%61.05%
46
Neutral
€1.35B-20.96%4.36%-16.06%-529.92%
41
Neutral
HK$5.75B
39
Underperform
HK$1.62B-28.76%-58.04%-65.03%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1881
Regal Real Estate Investment
0.40
-0.16
-28.57%
HK:0095
LVGEM (China) Real Estate Investment Company Limited
0.25
-0.44
-63.77%
HK:1503
China Merchants Commercial Real Estate Investment Trust
1.26
0.11
10.04%
HK:0978
China Merchants Land Limited
0.28
-0.02
-6.78%
HK:0480
HKR International Limited
1.10
-0.08
-6.78%
HK:0147
International Business Settlement Holdings Limited
0.23
0.12
109.09%
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: Sep 19, 2025