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Royal Century Resources Holdings Ltd (HK:8125)
:8125
Hong Kong Market
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Royal Century Resources Holdings Ltd (8125) AI Stock Analysis

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HK:8125

Royal Century Resources Holdings Ltd

(8125)

Rating:51Neutral
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 (8125) vs. iShares MSCI Hong Kong ETF (EWH)

Royal Century Resources Holdings Ltd Business Overview & Revenue Model

Company DescriptionRoyal Century Resources Holdings Ltd (8125) is a diversified investment holding company headquartered in Hong Kong. The company primarily operates in the sectors of construction and interior design, property investment, and financial services. Its core services include construction and interior design contracting, property leasing, and the provision of financial advisor services, catering to a diverse clientele across the region.
How the Company Makes MoneyRoyal 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
55
Neutral
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
70
Positive
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue88.37M164.54M87.60M55.76M57.66M66.81M
Gross Profit6.40M3.48M9.03M2.12M9.90M11.66M
EBITDA-5.74M-14.72M802.00K-10.76M-5.63M-7.18M
Net Income-9.11M-21.68M-9.79M-24.56M-21.07M-19.43M
Balance Sheet
Total Assets102.33M111.75M90.71M84.40M102.21M119.89M
Cash, Cash Equivalents and Short-Term Investments26.24M43.25M45.69M5.92M6.19M16.73M
Total Debt962.00K0.001.90M14.45M15.36M13.57M
Total Liabilities26.95M52.57M17.21M36.42M29.80M26.41M
Stockholders Equity75.38M59.18M73.50M47.98M72.41M93.48M
Cash Flow
Free Cash Flow-49.85M-35.12M-18.01M-1.29M-4.24M-16.96M
Operating Cash Flow-47.30M-33.98M-17.60M-1.28M-3.58M1.14M
Investing Cash Flow29.81M393.00K32.83M41.00K-561.00K-17.10M
Financing Cash Flow38.07M31.15M24.55M963.00K-6.40M21.97M

Royal Century Resources Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.28
Positive
100DMA
0.29
Positive
200DMA
0.30
Positive
Market Momentum
MACD
<0.01
Negative
RSI
58.76
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8125, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.28, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8125.

Royal Century Resources Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$17.99B12.87-3.58%2.97%1.27%-14.28%
56
Neutral
HK$203.22M14.8919.48%30.56%
51
Neutral
HK$53.28M-32.68%87.83%38.14%
51
Neutral
HK$96.16M5.6920.69%8.40%-13.44%
44
Neutral
HK$33.00M-11.53%11.71%70.51%
41
Neutral
HK$170.88M
-50.43%79.67%
32
Underperform
HK$66.00M-112.69%-20.21%-39.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:8125
Royal Century Resources Holdings Ltd
0.30
-0.12
-28.57%
HK:1575
Morris Home Holdings Limited
0.06
-0.01
-14.29%
HK:0396
Hing Lee (HK) Holdings Limited
0.12
0.05
71.43%
HK:8118
Bortex Global Ltd.
0.13
0.07
116.67%
HK:8392
Satu Holdings Ltd.
0.04
0.01
33.33%
HK:8547
Pacific Legend Group Limited
0.49
0.34
226.67%
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: May 03, 2025