Royal Century Resources Holdings Ltd (8125) AI Stock Analysis

• Market Cap: HK$55.09M
• Dividend Yield: N/A
• Average Volume (3M): 429.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 87.83%
• EPS Growth: 38.14%
• Country: HK
• Employees: 23
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.36
• Shares Outstanding: 180,610,570
• 10 Day Avg. Volume: 44,800
• 30 Day Avg. Volume: 429,700
• PEG Ratio: 0.03
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -0.45
• 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: 51 Neutral
• Price Target: ―

The company's strong revenue growth is overshadowed by its struggles with profitability and cash flow. While the balance sheet is solid with low leverage, the lack of profitability and cash flow issues are significant concerns. Technical indicators suggest a neutral to slightly bearish trend, and the lack of a positive P/E ratio and dividend yield further weigh down the stock's attractiveness.

Royal Century Resources Holdings Ltd Business Overview & Revenue Model

Company Description

Royal Century Resources Holdings Limited, an investment holding company, engages in the design, fitting out and engineering, and procurement of furnishings and related products services in Hong Kong. It operates through four segments: Design, Fitting Out and Engineering Services; Leasing Of Construction Equipment; Wines Merchandising; and Financial Services Business. The company also engages in leasing construction equipment and provision of related installation services; sourcing and merchandising of wines; and securities advisory, securities dealing and brokerage, asset management, and money lending activities. In addition, it offers property investment, and waterproofing works and maintenance services. The company was formerly known as Kate China Holdings Limited and changed its name to Royal Century Resources Holdings Limited in February 2017. Royal Century Resources Holdings Limited was founded in 2004 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Royal Century Resources Holdings Ltd generates revenue through multiple streams. In the construction and interior design sector, the company earns by undertaking contracts for construction projects and interior design services, which involve fees for project management, design, and execution. In the property investment segment, income is derived from leasing properties to tenants, providing a steady stream of rental income. The financial services division contributes to earnings through advisory fees charged for consulting services provided to clients. Additionally, the company may engage in strategic partnerships to enhance its market reach and service offerings, although specific partnerships are not detailed in the available data.

Royal Century Resources Holdings Ltd Financial Statement Overview

Summary

Overall, the company exhibits solid revenue growth but struggles with profitability and cash flow. The balance sheet is strong with low leverage, which provides some financial flexibility. However, improving operational efficiency and cash flow generation are critical for sustainable growth.

Income Statement

The company demonstrated significant revenue growth, increasing by approximately 57% year-over-year. However, both gross and net profit margins were low, with a gross profit margin of 10.3% and a negative net profit margin of -11.2% in the latest period. The EBIT and EBITDA margins were also negative, indicating challenges in achieving operational profitability.

Balance Sheet

The balance sheet reflects a strong equity position, with an equity ratio of 81% and a low debt-to-equity ratio of 0.03, indicating financial stability. However, the return on equity was negative due to ongoing net losses, which is a concern for future profitability.

Cash Flow

The cash flow statement highlights a decline in free cash flow, and the company reported negative free cash flow for the period. The operating cash flow was also negative, and the free cash flow to net income ratio was unfavorable, suggesting cash flow challenges despite a positive investing cash flow situation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.77M	164.54M	87.60M	55.76M	57.66M	66.81M
Gross Profit	3.81M	3.48M	9.03M	2.12M	9.90M	11.66M
EBITDA	-23.54M	-14.72M	802.00K	-10.76M	-5.63M	-7.18M
Net Income	-29.77M	-21.68M	-9.79M	-24.56M	-21.07M	-19.43M
Balance Sheet
Total Assets	111.75M	111.75M	90.71M	84.40M	102.21M	119.89M
Cash, Cash Equivalents and Short-Term Investments	43.25M	43.25M	45.69M	5.92M	6.19M	16.73M
Total Debt	0.00	0.00	1.90M	14.45M	15.36M	13.57M
Total Liabilities	52.57M	52.57M	17.21M	36.42M	29.80M	26.41M
Stockholders Equity	59.18M	59.18M	73.50M	47.98M	72.41M	93.48M
Cash Flow
Free Cash Flow	-35.12M	-35.12M	-18.01M	-1.29M	-4.24M	-16.96M
Operating Cash Flow	-46.93M	-33.98M	-17.60M	-1.28M	-3.58M	1.14M
Investing Cash Flow	572.50K	393.00K	32.83M	41.00K	-561.00K	-17.10M
Financing Cash Flow	46.77M	31.15M	24.55M	963.00K	-6.40M	21.97M

Royal Century Resources Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Positive
• 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:8125, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.31, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8125.

Royal Century Resources Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8125	51 Neutral	HK$55.09M	―	-32.68%	―	87.83%	38.14%
0396	51 Neutral	HK$98.59M	5.84	20.69%	8.47%	-13.44%	―
8392	45 Neutral	HK$37.00M	―	-11.53%	―	11.71%	70.51%
1575	44 Neutral	HK$151.54M	―	―	―	-50.43%	79.67%
8547	42 Neutral	HK$102.22M	425.00	―	―	-21.85%	-98.18%
8118	40 Underperform	HK$57.50M	―	-112.69%	―	-20.21%	-39.66%