Royal Deluxe Holdings Ltd. (3789) AI Stock Analysis

• Market Cap: HK$78.00M
• Dividend Yield: N/A
• Average Volume (3M): 51.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -6.72%
• EPS Growth: -161.73%
• Country: HK
• Employees: 89
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 44,400
• 30 Day Avg. Volume: 51,600
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1

• Rating: 55 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenue and profitability, and weak cash flow performance. While the technical analysis shows some positive momentum, the poor valuation due to negative earnings further weighs down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

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 property development and investment operations. The company's key revenue streams include sales of developed residential and commercial properties, rental income from its investment properties, and property management fees. Additionally, the company may engage in joint ventures or partnerships with other real estate developers or investors, which can provide additional income and share the risks associated with large-scale projects. The overall earnings are influenced by market demand for real estate, property values, and the company’s ability to effectively manage its assets and projects.

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	758.21M	730.96M	783.58M	702.11M	470.42M	870.20M
Gross Profit	49.24M	41.54M	66.45M	61.35M	64.86M	60.95M
EBITDA	2.98M	7.51M	27.01M	40.72M	22.49M	52.53M
Net Income	-713.00K	-6.05M	9.77M	21.40M	6.78M	37.11M
Balance Sheet
Total Assets	458.23M	467.24M	480.00M	405.37M	415.71M	445.24M
Cash, Cash Equivalents and Short-Term Investments	110.38M	48.64M	88.22M	68.96M	70.53M	85.87M
Total Debt	530.00K	396.00K	632.00K	16.17M	34.71M	43.21M
Total Liabilities	144.52M	156.66M	163.37M	98.51M	130.27M	166.56M
Stockholders Equity	313.71M	310.58M	316.63M	306.86M	285.50M	278.72M
Cash Flow
Free Cash Flow	26.49M	-40.44M	35.39M	16.85M	-6.82M	24.24M
Operating Cash Flow	31.27M	-39.72M	40.24M	25.47M	576.00K	42.14M
Investing Cash Flow	-14.80M	428.00K	-11.74M	-8.49M	-7.40M	-14.12M
Financing Cash Flow	-13.52M	-255.00K	-16.26M	-18.55M	-8.52M	-7.80M

Royal Deluxe Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3789, the sentiment is Neutral. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$69.60M	36.39	-3.98%	―	-50.14%	-114.40%
1637	65 Neutral	HK$82.00M	15.19	2.33%	―	-30.55%	―
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
3789	55 Neutral	HK$78.00M	―	-1.93%	―	-6.72%	-161.73%
1472	54 Neutral	HK$65.00M	―	-3.05%	―	67.24%	-42.19%
1826	54 Neutral	HK$95.90M	10.14	-265.97%	―	11.52%	98.72%
1630	45 Neutral	HK$61.50M	―	-8.05%	―	-29.39%	78.42%

Royal Deluxe Holdings Ltd. Corporate Events

Royal Deluxe Holdings Renews Key Framework Agreements

Royal Deluxe Holdings Limited has announced the renewal of its GTM and GTS Framework Agreements, which involve transactions with GT Material and GT Scaffolding, companies wholly-owned by a relative of several of Royal Deluxe’s directors. These transactions are considered continuing connected transactions under the Listing Rules, requiring independent shareholder approval due to the percentage ratios exceeding 5%. An extraordinary general meeting will be held for shareholders to consider and approve these agreements, with relevant details to be provided in a forthcoming circular.