Rykadan Capital Ltd. (2288) AI Stock Analysis

• Market Cap: HK$56.32M
• Dividend Yield: N/A
• Average Volume (3M): 108.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 1570.97%
• EPS Growth: -3.37%
• Country: HK
• Employees: 22
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Development
• EPS (TTM): -0.24
• Shares Outstanding: 375,447,000
• 10 Day Avg. Volume: 20,114
• 30 Day Avg. Volume: 108,180
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.48
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 36 Underperform
• Price Target: ―

Rykadan Capital Ltd. faces significant financial hurdles, including negative profitability and cash flow issues. The technical analysis indicates a lack of clear momentum, while the valuation is weak due to a negative P/E ratio and absence of dividends. These factors suggest a cautious outlook for the stock, with a need for improved financial performance to enhance investor confidence.

Rykadan Capital Ltd. Business Overview & Revenue Model

Company Description

Rykadan Capital Limited, an investment holding company, engages in the property investment and development business in Hong Kong, the People's Republic of China, the United States, and the United Kingdom. The company operates through Property Development; Property Investment; Asset, Investment and Fund management; and Distribution of Construction and Interior Decorative Materials segments. It invests in residential, commercial, and industrial properties; and leases premises. The company also distributes construction and interior decorative materials, such as quartz and marble-based engineered stone composite surface products. In addition, it provides asset, investment, and fund management services; financing services; and project, property, and corporate management services. The company was formerly known as Sundart International Holdings Limited and changed its name to Rykadan Capital Limited in September 2012. Rykadan Capital Limited was founded in 1986 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Rykadan Capital Ltd. generates revenue through several key streams. The primary source of income is derived from its property development and investment activities, where the company acquires, develops, and sells or leases commercial, industrial, and residential properties. Revenue is also generated through the provision of construction services, where the company undertakes construction projects for clients. Furthermore, Rykadan Capital earns income from its asset and project management services, where it manages real estate assets and development projects, generating fees for these services. The distribution of building materials also contributes to the company's revenue, where it supplies materials to the construction industry. The company's earnings are influenced by factors such as property market conditions, construction demand, and strategic partnerships within the real estate sector.

Rykadan Capital Ltd. Financial Statement Overview

Summary

Rykadan Capital Ltd. is facing significant financial challenges, particularly in maintaining profitability and managing cash flows. The balance sheet shows moderate stability but increasing leverage. Overall, the company needs to address its operational inefficiencies and improve its financial health to ensure long-term sustainability.

Income Statement

Rykadan Capital Ltd. has experienced declining revenue and profitability over the past years. The gross profit margin has turned negative, and the net income remains significantly negative, indicating challenges in managing costs and achieving operational efficiency. The revenue growth rate improved slightly in 2024, but overall, the company is struggling to generate positive returns.

Balance Sheet

The company maintains a relatively stable equity base, but the debt-to-equity ratio has increased over the years, indicating higher leverage risks. The equity ratio remains strong, but declining stockholders' equity is a concern. Overall, the balance sheet shows moderate stability with potential risk due to increasing debt levels.

Cash Flow

Rykadan Capital Ltd. has seen fluctuating cash flow from operations with recent improvements. However, the free cash flow remains negative, highlighting ongoing cash management issues. The operating cash flow to net income ratio shows a positive shift but remains weak due to significant net losses.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	172.78M	104.39M	87.69M	86.94M	168.16M	110.68M
Gross Profit	-5.08M	-27.30M	2.55M	11.13M	18.92M	43.22M
EBITDA	-45.54M	-108.34M	-31.30M	-13.22M	23.07M	-43.55M
Net Income	-204.03M	-173.89M	-189.33M	-34.87M	4.50M	-77.32M
Balance Sheet
Total Assets	995.20M	1.15B	1.36B	1.59B	1.55B	1.80B
Cash, Cash Equivalents and Short-Term Investments	100.91M	100.90M	167.49M	110.14M	369.79M	242.09M
Total Debt	216.26M	279.64M	312.80M	331.59M	240.99M	306.40M
Total Liabilities	233.33M	296.13M	328.20M	359.28M	269.87M	462.92M
Stockholders Equity	773.74M	861.37M	1.04B	1.23B	1.28B	1.32B
Cash Flow
Free Cash Flow	82.51M	-158.00K	-93.72M	-14.55M	121.50M	-106.34M
Operating Cash Flow	83.34M	678.00K	-93.68M	-14.47M	121.60M	-105.91M
Investing Cash Flow	-4.38M	-27.99M	112.76M	-325.28M	264.86M	-17.82M
Financing Cash Flow	-117.24M	-38.05M	42.01M	79.25M	-265.34M	-61.65M

Rykadan Capital Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2288, 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 0.16, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.79 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2288.

Rykadan Capital Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$6.83B	19.23	-1.11%	7.12%	4.74%	-22.06%
2288	36 Underperform	HK$56.32M	―	-23.34%	―	1570.97%	-3.37%
CGR0		€6.78M	―	-39.44%	―	―	―
7PJ		€6.40M	―		―	―	―
XSA		€5.84M	―	-27.03%	―	―	―
0456	40 Underperform	HK$58.75M	―	-34.78%	―	-46.33%	21.41%
0747	29 Underperform	HK$60.24M	―	-22.96%	―	308.44%	34.75%

Rykadan Capital Ltd. Corporate Events

Rykadan Capital Announces New Hong Kong Headquarters

Rykadan Capital Limited, a company incorporated in the Cayman Islands, has announced a change in the location of its headquarters and principal place of business in Hong Kong. Effective from April 25, 2025, the new address will be 29/F, Rykadan One, 23 Wong Chuk Hang Road, Wong Chuk Hang, Hong Kong. The company’s telephone and facsimile numbers will remain the same. This relocation could signify a strategic move to enhance operational efficiency or market presence in Hong Kong.

Rykadan Capital’s EGM Approves Major Property Disposal

Rykadan Capital Limited announced the results of its Extraordinary General Meeting (EGM) held on April 17, 2025, where shareholders approved a significant disposal of properties. The resolution was passed with an overwhelming majority, with 98.38% voting in favor. This decision marks a substantial move in the company’s strategic operations, potentially impacting its asset management and financial positioning.

Rykadan Capital Ltd. Divests from Joint Venture

Rykadan Capital Ltd. has announced the disposal of its entire equity interest and loans in a wholly-owned subsidiary through a joint venture company. The transaction involves the sale of the Sale Share and Sale Loan for a total consideration of HK$240,000,000. Following the completion of this sale, Rykadan Capital Ltd. will no longer hold any interest in the Target Group. This move is not considered a notifiable transaction under the Listing Rules, indicating a strategic decision to divest from this particular joint venture.

Rykadan Capital to Hold EGM for Property Disposal Approval

Rykadan Capital Limited, a company incorporated in the Cayman Islands, has announced an extraordinary general meeting (EGM) to be held on April 17, 2025, in Hong Kong. The meeting will focus on approving two formal agreements related to the disposal of properties and parking spaces at Rykadan Capital Tower in Kowloon, Hong Kong. The agreements involve the sale of the 27th and 28th floors, along with associated parking spaces, to German Pool (Hong Kong) Limited. This move is part of the company’s strategic decisions to manage its property assets, potentially impacting its financial positioning and stakeholder interests.