Royal Group Holdings International Company Limited (8300) AI Stock Analysis

• Market Cap: HK$153.31M
• Dividend Yield: N/A
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 82.9
• Beta (1Y): 0.69
• Revenue Growth: -24.92%
• EPS Growth: N/A
• Country: HK
• Employees: 12
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.00
• Shares Outstanding: 2,643,360,000
• 10 Day Avg. Volume: 4,638,000
• 30 Day Avg. Volume: 2,788,666
• PEG Ratio: 0.58
• Price to Book (P/B): -13.83
• Price to Sales (P/S): 6.73
• P/FCF Ratio: -22.37
• 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: 40 Underperform
• Price Target: HK$0.06 ▼(-6.67% Downside)

The overall stock score is primarily influenced by significant financial challenges and bearish technical indicators. The company's negative equity and ongoing losses are major concerns, while technical analysis confirms a downtrend. Valuation metrics further highlight the lack of profitability, resulting in a low overall score.

Positive Factors

Cash Flow Improvement

The significant growth in free cash flow suggests better cash management and potential for reinvestment in core operations, aiding long-term sustainability.

Diversified Revenue Streams

Diversification across sectors can mitigate risk and provide stability, allowing the company to capitalize on multiple market opportunities over time.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management in core operations, which is crucial for maintaining profitability as the company scales.

Negative Factors

Negative Equity

Negative equity suggests liabilities exceed assets, posing solvency risks and limiting financial flexibility, which could hinder long-term growth and stability.

Declining Revenue

Significant revenue decline indicates potential loss of market share or demand, challenging the company's ability to sustain operations and invest in growth.

Negative Operating Cash Flow

Negative operating cash flow suggests operational inefficiencies, potentially leading to liquidity issues and limiting the company's ability to fund day-to-day operations.

Royal Group Holdings International Company Limited Business Overview & Revenue Model

Company Description

Royal Catering Group Holdings Company Limited, an investment holding company, provides casual dining food catering services in Hong Kong. It is also involved in the sale of beverages; franchise holding; and provision of human resources management services. As of March 31, 2022, the company operated three restaurants under the Du Hsiao Yueh Restaurant and Da Shia Taiwan brands. The company was founded in 1993 and is headquartered in Kowloon, Hong Kong. Royal Catering Group Holdings Company Limited is a subsidiary of Fortune Round Limited.

How the Company Makes Money

Royal Group Holdings generates revenue primarily through its real estate development projects, which include residential, commercial, and mixed-use properties. The company profits from the sale and leasing of these properties, as well as through property management services. Additionally, Royal Group earns income from its asset management operations, where it manages investment portfolios on behalf of clients, charging management fees and performance-based incentives. Strategic partnerships with other companies and stakeholders in the real estate and financial sectors further enhance its revenue opportunities, allowing the company to capitalize on market trends and investment opportunities.

Royal Group Holdings International Company Limited Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and persistent losses. The balance sheet shows financial instability with negative equity, and while there are some improvements in free cash flow, operational cash flow remains a concern.

Income Statement

The income statement reveals significant challenges, with a steep decline in revenue growth of -41.71% in the latest year. Gross profit margin remains relatively stable at around 59%, but the net profit margin is deeply negative at -13.15%, indicating ongoing profitability issues. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, leading to an undefined debt-to-equity ratio. The equity ratio is negative, indicating liabilities exceed assets. These factors highlight financial instability and potential solvency risks.

Cash Flow

Cash flow analysis indicates some improvement, with free cash flow growth of 83.32%. However, operating cash flow remains negative, and the operating cash flow to net income ratio is also negative, suggesting cash flow challenges persist despite some positive free cash flow trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.29M	26.73M	51.73M	29.74M	36.21M	42.71M
Gross Profit	18.17M	15.78M	30.70M	20.77M	28.31M	33.85M
EBITDA	-5.47M	-1.39M	-23.99M	-14.50M	-5.05M	654.00K
Net Income	-2.07M	-3.52M	-30.37M	-22.00M	-10.18M	-4.10M
Balance Sheet
Total Assets	16.49M	16.49M	18.86M	53.59M	74.35M	89.92M
Cash, Cash Equivalents and Short-Term Investments	300.00K	300.00K	9.11M	26.70M	60.67M	44.86M
Total Debt	5.01M	5.01M	15.56M	21.10M	20.94M	25.46M
Total Liabilities	30.50M	30.50M	29.89M	32.55M	31.31M	36.70M
Stockholders Equity	-13.00M	-13.00M	-9.34M	21.05M	43.05M	53.23M
Cash Flow
Free Cash Flow	-8.04M	-8.04M	-9.92M	-23.34M	-8.10M	1.63M
Operating Cash Flow	-7.98M	-7.98M	-8.10M	-18.50M	-7.83M	1.77M
Investing Cash Flow	-38.00K	-22.00K	-1.79M	-4.83M	33.85M	503.00K
Financing Cash Flow	3.75M	-803.00K	-7.69M	-10.65M	-10.21M	3.14M

Royal Group Holdings International Company Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8300, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 30.98 is Neutral, neither overbought nor oversold. The STOCH value of 35.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8300.

Royal Group Holdings International Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2108	68 Neutral	HK$252.00M	13.46	3.56%	―	-4.47%	-58.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1181	57 Neutral	HK$208.75M	-4.78	-18.74%	5.15%	-9.92%	-1260.00%
0126	45 Neutral	HK$205.85M	-3.63	-1.85%	―	-6.71%	74.72%
1869	44 Neutral	HK$163.59M	-3.53	―	―	-18.92%	-2250.00%
8213	41 Neutral	HK$166.52M	-7.69	―	―	-58.36%	6.25%
8300	40 Underperform	HK$153.31M	82.86	―	―	-24.92%	―