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Royale Home Holdings Limited (1198) AI Stock Analysis
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Royale Home Holdings Limited
(HKEX:1198)
The score is held down primarily by very weak financial performance—shrinking revenue, severely negative margins, cash burn, and higher leverage with reduced equity. This is partially offset by strong recent technical momentum (price above key moving averages and positive MACD). Valuation provides limited support because the negative P/E reflects ongoing losses and no dividend yield is available.
Royale Home Holdings Limited (1198) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 424.60M
- Dividend Yield
- ―
- Average Volume (3M)
- 447.24K
- Price to Earnings (P/E)
- -0.6
- Beta (1Y)
- 0.71
- Revenue Growth
- -29.60%
- EPS Growth
- -51.87%
- Country
- Hong Kong
- Employees
- 682
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Furnishings, Fixtures & Appliances
Royale Home Holdings Limited Business Overview & Revenue Model
Company Description
Royale Home Holdings Limited operates as an investment holding entity with a primary focus on the manufacturing and sale of furniture within mainland China. The company diversifies its activities across several key segments, including the production...
How the Company Makes Money
Royale Home Holdings Limited primarily makes money by selling home furnishing products (notably wooden furniture and related household items) to customers, generating revenue from product sales. Its earnings are driven by (i) sales volume and product...
Royale Home Holdings Limited Financial Statement Overview
Summary
Financial performance is very weak: revenue declined again in 2025 (-15.1% YoY), margins compressed sharply (gross margin ~4.9%), losses are extreme (operating margin ~-74.8%, net margin ~-158%), operating/free cash flow are negative (OCF ~-482M; FCF ~-494M), and leverage is elevated with equity erosion (debt-to-equity ~5.8x).
Income Statement
12Very NegativeBalance Sheet
24NegativeCash Flow
18Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 344.93M | 424.12M | 559.28M | 910.82M | 1.70B | 1.53B |
| Gross Profit | -32.45M | -29.79M | 37.68M | 109.02M | 245.72M | 318.23M |
| EBITDA | -289.14M | -266.19M | -250.53M | -232.21M | 161.42M | 364.57M |
| Net Income | -751.92M | -670.86M | -355.82M | -421.60M | 5.59M | 76.90M |
Balance Sheet | ||||||
| Total Assets | 4.37B | 5.01B | 5.35B | 5.84B | 6.13B | 6.30B |
| Cash, Cash Equivalents and Short-Term Investments | 52.00M | 101.11M | 21.76M | 50.16M | 409.27M | 156.93M |
| Total Debt | 3.52B | 3.32B | 3.12B | 2.77B | 3.03B | 2.66B |
| Total Liabilities | 3.98B | 3.79B | 3.81B | 3.87B | 3.71B | 3.57B |
| Stockholders Equity | 278.80M | 636.49M | 1.38B | 1.78B | 2.28B | 2.58B |
Cash Flow | ||||||
| Free Cash Flow | -598.17M | -494.09M | -242.43M | -93.48M | -286.85M | -82.96M |
| Operating Cash Flow | -586.51M | -482.43M | -240.28M | -32.53M | -146.36M | 16.91M |
| Investing Cash Flow | 540.76M | 45.75M | 2.00M | -182.36M | -289.05M | -417.50M |
| Financing Cash Flow | 63.57M | 502.50M | 223.05M | -116.52M | 706.58M | 308.44M |
Royale Home Holdings Limited Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1198, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 7.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1198.
Royale Home Holdings Limited Peers Comparison
Overall Rating
HK:669066Neutral
HK:199965Neutral
HK:137363Neutral
HK:141855Neutral- HK:119853Neutral
HK:222246Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:6690 | 66Neutral | HKD 208.69B | 11.15 | 14.12% | 6.62% | -3.85% | -13.53% |
| HK:1999 | 65Neutral | HKD 8.67B | 4.80 | 13.03% | 10.64% | -2.80% | -12.13% |
| HK:1373 | 63Neutral | HKD 449.19M | 10.06 | 5.15% | 8.35% | -8.88% | -4.52% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| HK:1418 | 55Neutral | HKD 211.75M | 4.69 | 4.32% | 8.26% | 35.18% | -56.12% |
| HK:1198 | 53Neutral | HKD 446.95M | -0.57 | -164.30% | ― | -29.60% | -51.87% |
| HK:2222 | 46Neutral | HKD 294.22M | -16.07 | -0.49% | ― | 4.73% | 76.27% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1198 | Royale Home Holdings Limited | 0.17 | 0.02 | 16.22% | |
| HK:1373 | International Housewares Retail Co | 0.64 | -0.09 | -12.05% | |
| HK:1999 | Man Wah Holdings | 2.25 | -2.34 | -50.98% | |
| HK:1418 | Sinomax Group Ltd. | 0.12 | -0.10 | -45.00% | |
| HK:2222 | NVC International Holdings Ltd. | 0.58 | -0.14 | -19.44% | |
| HK:6690 | Haier Smart Home Co., Ltd. Class H | 19.95 | -3.97 | -16.61% |
Royale Home Holdings Limited Corporate Events
Royale Home Renews Connected Deals With Controlling Shareholder, Rectifies Listing Rule Breach
Royale Home Holdings Limited has entered into new master product sales and decoration services agreements with controlling shareholder Science City to replace earlier arrangements that expired at the end of 2025. The renewed agreements, effective fro...
Royale Home Posts Wider Interim Loss on Property and Credit Charges
Royale Home Holdings Limited reported a sharp deterioration in its interim results for the six months ended 30 June 2026, with revenue falling to RMB99.1 million from RMB174.0 million a year earlier and a widened net loss of RMB378.0 million. The per...
Royale Home reshapes secretarial and compliance team with new appointments
Royale Home Holdings Limited has announced the resignation of its joint company secretaries, Ms. Zhong Yuhua and Mr. Cheng Ching Kit, with effect from 27 August 2026, along with Mr. Cheng stepping down as authorised representative and process agent i...
Royale Home Sets Board Meeting to Approve 2026 Interim Results and Dividend
Royale Home Holdings Limited has scheduled a board meeting for 27 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend, signaling potential re...
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: Oct 22, 2026