Royal Deluxe Holdings Ltd. (3789) AI Stock Analysis

• Market Cap: HK$114.00M
• Dividend Yield: N/A
• Average Volume (3M): 60.67K
• Price to Earnings (P/E): 190.0
• Beta (1Y): 0.26
• Revenue Growth: -2.05%
• EPS Growth: N/A
• Country: HK
• Employees: 89
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 22,400
• 30 Day Avg. Volume: 60,666
• PEG Ratio: 0.07
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.66
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.10 ▲(30.00% Upside)

The overall stock score of 54 reflects significant financial challenges, particularly in profitability and cash flow, which weigh heavily on the company's outlook. Despite strong technical momentum, the stock appears overvalued with a high P/E ratio and no dividend yield, limiting its appeal. The absence of earnings call data and corporate events further underscores the need for caution.

Positive Factors

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to navigate economic fluctuations more effectively.

Strong Capital Structure

A strong capital structure supports long-term stability and provides a buffer against financial distress, aiding in strategic investments.

Strategic Partnerships

Strategic partnerships can drive growth and market expansion, enhancing competitive positioning and revenue diversification.

Negative Factors

Profitability Challenges

Negative profit margins highlight operational inefficiencies and can hinder reinvestment and growth, impacting long-term viability.

Declining Revenue

Declining revenue indicates potential market share loss or demand issues, which could affect future earnings and competitive strength.

Cash Flow Issues

Weak cash flow limits the company's ability to fund operations and invest in growth opportunities, posing a risk to financial health.

Royal Deluxe Holdings Ltd. Business Overview & Revenue Model

Company Description

Royal Deluxe Holdings Limited, an investment holding company, provides formwork erection and related ancillary services in Hong Kong. The company undertakes formwork erection projects for building constructions and civil engineering works. It also develops construction technology; rents table forms, as well as offers services; and provides fit-out and engineering design services. In addition, the company is involved in the property holding and investment activities. It serves government, public transport operators, airport authority, and property developers. The company was founded in 1994 and is headquartered in Kwun Tong, Hong Kong. Royal Deluxe Holdings Limited is a subsidiary of Wang K M Limited.

How the Company Makes Money

Royal Deluxe Holdings Ltd. generates revenue primarily through its hotel operations, which include room bookings, event hosting, and food and beverage services. The company also derives income from property sales and leasing activities in its real estate segment. Additionally, strategic investments in other businesses contribute to its earnings, with revenue streams bolstered by partnerships with local and international entities in the hospitality and property sectors. The company benefits from rising tourism and real estate demand in its operational regions, enhancing its overall profitability.

Royal Deluxe Holdings Ltd. Financial Statement Overview

Summary

Royal Deluxe Holdings Ltd. faces significant financial challenges, particularly in profitability and cash flow. Revenue and profit margins have declined, and cash flow metrics indicate liquidity issues. Despite a strong balance sheet with low leverage, the company needs to address operational inefficiencies and improve cash generation to enhance financial stability.

Income Statement

The income statement shows a declining trend in revenue with a negative revenue growth rate of -3.59% in the most recent year. Gross profit margin has decreased from 8.48% to 5.68%, and net profit margin turned negative at -0.83%, indicating profitability challenges. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The balance sheet remains relatively stable with a low debt-to-equity ratio of 0.0013, indicating low leverage. However, return on equity has turned negative at -1.95%, reflecting poor profitability. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals significant challenges, with a negative free cash flow growth rate of -252.64% and negative operating cash flow. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. Free cash flow to net income ratio is slightly positive, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	730.96M	730.96M	783.58M	702.11M	470.42M	870.20M
Gross Profit	38.56M	41.54M	66.45M	61.35M	64.86M	60.95M
EBITDA	-2.19M	7.51M	27.01M	40.72M	22.49M	52.53M
Net Income	-6.05M	-6.05M	9.77M	21.40M	6.78M	37.11M
Balance Sheet
Total Assets	467.24M	467.24M	480.00M	405.37M	415.71M	445.24M
Cash, Cash Equivalents and Short-Term Investments	48.64M	48.64M	88.22M	68.96M	70.53M	85.87M
Total Debt	396.00K	396.00K	632.00K	16.17M	34.71M	43.21M
Total Liabilities	156.66M	156.66M	163.37M	98.51M	130.27M	166.56M
Stockholders Equity	310.58M	310.58M	316.63M	306.86M	285.50M	278.72M
Cash Flow
Free Cash Flow	-40.44M	-40.44M	35.39M	16.85M	-6.82M	24.24M
Operating Cash Flow	-39.72M	-39.72M	40.24M	25.47M	576.00K	42.14M
Investing Cash Flow	-709.00K	428.00K	-11.74M	-8.49M	-7.40M	-14.12M
Financing Cash Flow	-236.00K	-255.00K	-16.26M	-18.55M	-8.52M	-7.80M

Royal Deluxe Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3789, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 8.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3789.

Royal Deluxe Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1591	66 Neutral	HK$57.60M	-10.14	-12.77%	―	11.27%	-1272.22%
1637	65 Neutral	HK$90.00M	16.67	4.53%	―	-40.54%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3789	54 Neutral	HK$114.00M	190.00	0.18%	―	-2.05%	―
1630	52 Neutral	HK$64.50M	-3.55	-14.78%	―	-28.21%	34.59%
1472	50 Neutral	HK$63.00M	―	-4.84%	―	71.16%	-67.47%
1826	44 Neutral	HK$75.92M	-142.50	―	―	11.52%	98.72%

Royal Deluxe Holdings Ltd. Corporate Events

Royal Deluxe Holdings Reports Positive Interim Results for 2025

Royal Deluxe Holdings Limited announced its unaudited interim results for the six months ending September 30, 2025. The company reported a 3.5% increase in revenue to HK$347,344,000 compared to the same period in 2024. Despite a slight decrease in gross profit margin from 5.8% to 5.5%, the company achieved a profit attributable to owners of HK$3,684,000, a significant improvement from a loss of HK$2,920,000 in the previous year. The financial position strengthened with bank balances and cash increasing by 65.8% to HK$80,622,000. These results indicate a positive turnaround in the company’s financial performance, potentially enhancing its market position and offering reassurance to stakeholders.

Royal Deluxe Holdings Schedules Board Meeting for Interim Results Review

Royal Deluxe Holdings Limited has announced an upcoming board meeting scheduled for November 27, 2025. The meeting’s agenda includes reviewing and approving the unaudited interim results for the six months ending September 30, 2025, and considering the payment of an interim dividend. This announcement indicates the company’s ongoing financial assessments and potential shareholder returns, reflecting its operational focus and commitment to transparency.

Royal Deluxe Holdings Announces CEO Transition

Royal Deluxe Holdings Ltd. has announced a change in its executive leadership. Ms. Chao Lai Heng has resigned as CEO, effective October 23, 2025, due to a change in her work arrangement. She has no disagreements with the board, and her resignation does not require further attention from shareholders. Mr. Wang Yu Hin, also known as Benjamin Wang, has been appointed as the new CEO. Mr. Wang, who has been an executive director since 2016, brings extensive experience in overseeing operations, business development, and finance. His appointment is expected to maintain stability and continuity within the company’s leadership.