Royal Century Resources Holdings Ltd (8125) AI Stock Analysis

• Market Cap: HK$144.49M
• Dividend Yield: N/A
• Average Volume (3M): 41.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 114.81%
• EPS Growth: -134.21%
• Country: HK
• Employees: 23
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.05
• Shares Outstanding: 180,610,570
• 10 Day Avg. Volume: 29,900
• 30 Day Avg. Volume: 41,497
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$0.72 ▲(17.87% Upside)

The score is held down primarily by weak financial performance—very low margins, persistent losses, and worsening cash burn—despite the benefit of a zero-debt balance sheet. Technicals are supportive with strong trend and positive MACD, but overbought signals raise pullback risk. Valuation remains constrained by negative earnings and no indicated dividend yield.

Positive Factors

Revenue Growth

The significant revenue growth indicates increased market traction and potential for future scaling, which is a positive sign for long-term business prospects.

Zero-Debt Balance Sheet

A zero-debt balance sheet reduces financial risk and offers flexibility for future investments or strategic initiatives, supporting long-term stability.

Market Momentum

While technicals are often short-term, sustained positive momentum can reflect underlying business improvements and investor confidence, aiding long-term growth.

Negative Factors

Weak Profitability

Persistent negative EBIT margins indicate ongoing operational challenges, which could hinder the company's ability to achieve sustainable profitability.

Cash Flow Concerns

Negative cash flow highlights liquidity issues and increases the risk of funding challenges, which could limit operational flexibility and strategic investments.

Compressed Margins

Severely compressed gross margins suggest pricing pressures or cost inefficiencies, which could impact long-term profitability and competitiveness.

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

Despite a strong FY2025 revenue rebound (+30.1% YoY) and zero debt, profitability and cash generation are weak: gross margin fell to ~2.1%, EBIT margin remained deeply negative (~-13.2%), net losses persist, and operating/free cash flow worsened materially (FY2025 OCF -33.99m; FCF -35.12m).

Income Statement

Revenue rebounded strongly in FY2025 (+30.1% YoY) after a modest FY2024 increase, showing improved top-line traction. However, profitability remains weak: FY2025 gross margin compressed sharply to ~2.1% (from ~10.3% in FY2024), and operating results stayed deeply negative (EBIT margin ~-13.2%). Net losses persist across all years shown, indicating the business has not yet converted growth into sustainable earnings power.

Balance Sheet

The balance sheet is a relative bright spot with very low leverage: total debt is zero in FY2025 (down from modest debt levels historically), and debt-to-equity is 0.0, which reduces financial risk. That said, ongoing losses are pressuring shareholder returns (FY2025 return on equity ~-36.6%), and equity has not translated into profitability, which limits balance-sheet strength from an investor-return perspective.

Cash Flow

Cash generation is a key concern. Operating cash flow is materially negative in FY2025 (-33.99m) and worsened versus FY2024 (-17.60m), with free cash flow also deeply negative in FY2025 (-35.12m) and showing negative growth. While losses are largely mirrored by cash outflows (free cash flow roughly in line with net loss in FY2024–FY2025), the sustained cash burn increases funding and execution risk if conditions do not improve.

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: Positive
• Last Price: 0.61
• 50DMA: Positive
• 100DMA: Positive
• 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:8125, the sentiment is Positive. The current price of 0.61 is below the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.58, and above the 200-day MA of 0.37, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 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

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%
0396	52 Neutral	HK$91.31M	5.41	20.69%	8.93%	-13.44%	―
8118	48 Neutral	HK$58.50M	-1.29	-112.69%	―	-20.21%	-39.66%
8125	47 Neutral	HK$144.49M	-1.96	-31.52%	―	114.81%	-134.21%
8392	43 Neutral	HK$47.00M	-117.50	-1.87%	―	19.09%	90.00%
8547	42 Neutral	HK$45.52M	128.33	―	―	-21.85%	-98.18%
1575	39 Underperform	HK$154.76M	-5.65	―	―	-50.43%	79.67%