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Royale Home Holdings Limited
(1198)
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Rating:45Neutral
Price Target:
HK$0.07
â–¼(-38.33% Downside)
Action:Reiterated
Date:07/14/26
The score is held down primarily by weak financial performance—shrinking revenue, sharply negative margins, persistent cash burn, and materially higher leverage—indicating elevated financial risk. Technicals show only a modest short-term rebound while the longer-term trend remains negative, and valuation metrics are not supportive because earnings are negative and no dividend yield is provided.
Positive Factors
Sizable Asset Base
A roughly HKD 5.0B asset base provides a durable buffer and optional sources of liquidity (collateral, asset sales or refinancing). That asset scale supports operational continuity and gives management options to shore up liquidity over the next few months.
Negative Factors
Falling Revenue
A 15.1% YoY revenue decline in 2025 reflects weakening demand or market share loss. Reduced top-line scale impairs fixed-cost absorption and magnifies unit economics pressure, making margin recovery and cash generation materially harder without structural demand improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Sizable Asset Base
A roughly HKD 5.0B asset base provides a durable buffer and optional sources of liquidity (collateral, asset sales or refinancing). That asset scale supports operational continuity and gives management options to shore up liquidity over the next few months.
Read all positive factors
Royale Home Holdings Limited (1198) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$223.48M
Dividend Yield0.68%
Average Volume (3M)107.27K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth-29.60%
EPS Growth-51.87%
CountryHK
Employees682
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)-0.27
Shares Outstanding2,598,561,300
10 Day Avg. Volume7,135
30 Day Avg. Volume107,270
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.49
Price to Sales (P/S)0.73
P/FCF Ratio-0.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 producti...
How the Company Makes Money
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Royale Home Holdings Limited Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
24
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 424.12M | 559.28M | 910.82M | 1.70B | 1.53B |
| Gross Profit | -29.79M | 37.68M | 109.02M | 245.72M | 318.23M |
| EBITDA | -284.87M | -204.33M | -258.42M | 161.42M | 364.57M |
| Net Income | -670.86M | -355.82M | -421.60M | 5.59M | 76.90M |
Balance Sheet | |||||
| Total Assets | 5.01B | 5.35B | 5.84B | 6.13B | 6.30B |
| Cash, Cash Equivalents and Short-Term Investments | 101.11M | 21.76M | 50.16M | 409.27M | 156.93M |
| Total Debt | 3.32B | 3.12B | 2.77B | 3.03B | 2.66B |
| Total Liabilities | 3.79B | 3.81B | 3.87B | 3.71B | 3.57B |
| Stockholders Equity | 636.49M | 1.38B | 1.78B | 2.28B | 2.58B |
Cash Flow | |||||
| Free Cash Flow | -494.09M | -242.43M | -93.48M | -286.85M | -82.96M |
| Operating Cash Flow | -482.43M | -240.28M | -32.53M | -146.36M | 16.91M |
| Investing Cash Flow | 45.75M | 2.00M | -182.36M | -289.05M | -417.50M |
| Financing Cash Flow | 502.50M | 223.05M | -116.52M | 706.58M | 308.44M |
Royale Home Holdings Limited Technical Analysis
Neutral
0.12
Price Trends
0.08
Positive
0.09
Positive
0.11
Negative
Market Momentum
<0.01
Positive
53.28
Neutral
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1198, the sentiment is Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.08, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.28 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 Neutral sentiment for HK:1198.
Royale Home Holdings Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$216.12B | 10.87 | 14.77% | 6.27% | 0.59% | -6.14% | |
68 Neutral | HK$11.95B | 6.41 | 13.03% | 7.96% | -2.80% | -12.13% | |
63 Neutral | HK$470.41M | 10.38 | 5.15% | 6.87% | -8.88% | -4.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | HK$203.00M | 4.77 | 4.32% | 8.13% | 35.18% | -56.12% | |
52 Neutral | HK$314.51M | -17.19 | -0.49% | 414.85% | 4.73% | 76.27% | |
45 Neutral | HK$223.48M | -0.29 | -164.30% | 0.68% | -29.60% | -51.87% |
* Consumer Cyclical Sector Average
HK:1198
Royale Home Holdings Limited
0.09
-0.14
-62.61%
HK:1373
International Housewares Retail Co
0.66
-0.14
-17.19%
HK:1999
Man Wah Holdings
3.02
-1.51
-33.37%
HK:1418
Sinomax Group Ltd.
0.12
-0.10
-44.09%
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NVC International Holdings Ltd.
0.62
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Haier Smart Home Co., Ltd. Class H
21.06
-2.98
-12.41%
Royale Home Holdings Limited Corporate Events
Royale Home Reshapes Board with New Non-Executive Director Appointment
Jul 16, 2026
Royale Home Holdings Limited has announced a change in its boardroom, with non-executive director Tao Ying resigning effective 16 July 2026 due to other work arrangements, and confirming there is no disagreement with the board or issues requiring ...
Royale Home Holdings Sets Out Board and Committee Structure
Jul 16, 2026
Royale Home Holdings Limited has announced the current composition of its board of directors, led by Executive Director, Chairman and Chief Executive Officer Mr. Lin Ruhai, alongside a mix of non-executive and independent non-executive directors. ...
Royale Home Shifts Hong Kong Principal Office to Tsim Sha Tsui East
Jul 15, 2026
Royale Home Holdings Limited has announced a change to its principal place of business in Hong Kong, relocating to Room 1204, 12/F., Wing On Plaza, 62 Mody Road, Tsim Sha Tsui East, Kowloon, effective 15 July 2026. The company confirmed that its t...
Royale Home Wins Unanimous Shareholder Backing at 2026 AGM
Jun 16, 2026
Royale Home Holdings Limited reported that all resolutions tabled at its annual general meeting on 16 June 2026 were passed by shareholders through poll voting. The meeting covered routine corporate matters, with no shareholders required to abstai...
Royale Home Moves to Modernize Articles Ahead of New Market Regime
May 22, 2026
Royale Home Holdings Limited plans to overhaul its articles of association to align with Hong Kong’s evolving listing and corporate governance framework, particularly around hybrid meetings, electronic voting and digital dissemination of cor...
Royale Home Sets June 2026 AGM to Renew Board and Secure Share Issuance Mandate
May 22, 2026
Royale Home Holdings Limited has called its annual general meeting for 16 June 2026 in Guangzhou, where shareholders will review the audited financial statements for the year ended 31 December 2025 and consider the re-election of board members, in...
Royale Home Extends Share Award Plan and Limits It to Existing Shares
May 12, 2026
Royale Home Holdings Limited has extended the life of its Performance Share Award Plan by five years to 12 May 2031 and restructured it so that awards will be satisfied solely through purchases of existing shares on the market. The move removes an...
Royale Home Signs Connected Lease for Guangdong Production Plant
May 6, 2026
Royale Home Holdings’ indirect wholly owned unit Qingyuan Yuyuan has entered into a three-year lease for a 17,363-square-metre production plant in Yingde, Qingyuan, Guangdong, from Hengcheng, an indirect subsidiary of its controlling shareho...
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.