Royal Deluxe Holdings Ltd. (3789) AI Stock Analysis

• Market Cap: HK$70.80M
• Dividend Yield: N/A
• Average Volume (3M): 60.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: -6.72%
• EPS Growth: -161.73%
• Country: HK
• Employees: 89
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 22,400
• 30 Day Avg. Volume: 60,666
• PEG Ratio: 0.07
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -1.66
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 46 reflects significant financial challenges, particularly in profitability and cash flow, which are the most impactful factors. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings and lack of dividends. These factors collectively contribute to a low stock score.

Royal Deluxe Holdings Ltd. Business Overview & Revenue Model

Company Description

Royal Deluxe Holdings Limited, an investment holding company, provides formwork erection and related ancillary services in Hong Kong. The company undertakes formwork erection projects for building constructions and civil engineering works. It also develops construction technology; rents table forms, as well as offers services; and provides fit-out and engineering design services. In addition, the company is involved in the property holding and investment activities. It serves government, public transport operators, airport authority, and property developers. The company was founded in 1994 and is headquartered in Kwun Tong, Hong Kong. Royal Deluxe Holdings Limited is a subsidiary of Wang K M Limited.

How the Company Makes Money

Royal Deluxe Holdings Ltd. generates revenue primarily through its property development and investment operations. The company's key revenue streams include sales of developed residential and commercial properties, rental income from its investment properties, and property management fees. Additionally, the company may engage in joint ventures or partnerships with other real estate developers or investors, which can provide additional income and share the risks associated with large-scale projects. The overall earnings are influenced by market demand for real estate, property values, and the company’s ability to effectively manage its assets and projects.

Royal Deluxe Holdings Ltd. Financial Statement Overview

Summary

Royal Deluxe Holdings Ltd. faces significant financial challenges, particularly in profitability and cash flow. Revenue and profit margins have declined, and cash flow metrics indicate liquidity issues. Despite a strong balance sheet with low leverage, the company needs to address operational inefficiencies and improve cash generation to enhance financial stability.

Income Statement

The income statement shows a declining trend in revenue with a negative revenue growth rate of -3.59% in the most recent year. Gross profit margin has decreased from 8.48% to 5.68%, and net profit margin turned negative at -0.83%, indicating profitability challenges. EBIT and EBITDA margins have also declined, reflecting operational inefficiencies.

Balance Sheet

The balance sheet remains relatively stable with a low debt-to-equity ratio of 0.0013, indicating low leverage. However, return on equity has turned negative at -1.95%, reflecting poor profitability. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals significant challenges, with a negative free cash flow growth rate of -252.64% and negative operating cash flow. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. Free cash flow to net income ratio is slightly positive, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	758.21M	730.96M	783.58M	702.11M	470.42M	870.20M
Gross Profit	49.24M	41.54M	66.45M	61.35M	64.86M	60.95M
EBITDA	2.98M	7.51M	27.01M	40.72M	22.49M	52.53M
Net Income	-713.00K	-6.05M	9.77M	21.40M	6.78M	37.11M
Balance Sheet
Total Assets	458.23M	467.24M	480.00M	405.37M	415.71M	445.24M
Cash, Cash Equivalents and Short-Term Investments	110.38M	48.64M	88.22M	68.96M	70.53M	85.87M
Total Debt	530.00K	396.00K	632.00K	16.17M	34.71M	43.21M
Total Liabilities	144.52M	156.66M	163.37M	98.51M	130.27M	166.56M
Stockholders Equity	313.71M	310.58M	316.63M	306.86M	285.50M	278.72M
Cash Flow
Free Cash Flow	26.49M	-40.44M	35.39M	16.85M	-6.82M	24.24M
Operating Cash Flow	31.27M	-39.72M	40.24M	25.47M	576.00K	42.14M
Investing Cash Flow	-14.80M	428.00K	-11.74M	-8.49M	-7.40M	-14.12M
Financing Cash Flow	-13.52M	-255.00K	-16.26M	-18.55M	-8.52M	-7.80M

Royal Deluxe Holdings Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3789, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.65 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3789.

Royal Deluxe Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1591	66 Neutral	HK$57.60M	-10.14	-3.98%	―	-50.14%	-114.40%
1637	65 Neutral	HK$90.00M	16.67	2.33%	―	-30.55%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1472	50 Neutral	HK$67.00M	―	-3.05%	―	67.24%	-42.19%
3789	46 Neutral	HK$70.80M	-11.80	-1.93%	―	-6.72%	-161.73%
1630	45 Neutral	HK$64.50M	-6.83	-8.05%	―	-29.39%	78.42%
1826	40 Underperform	HK$75.92M	-142.50	―	―	11.52%	98.72%

Royal Deluxe Holdings Ltd. Corporate Events

Royal Deluxe Holdings Announces CEO Transition

Royal Deluxe Holdings Ltd. has announced a change in its executive leadership. Ms. Chao Lai Heng has resigned as CEO, effective October 23, 2025, due to a change in her work arrangement. She has no disagreements with the board, and her resignation does not require further attention from shareholders. Mr. Wang Yu Hin, also known as Benjamin Wang, has been appointed as the new CEO. Mr. Wang, who has been an executive director since 2016, brings extensive experience in overseeing operations, business development, and finance. His appointment is expected to maintain stability and continuity within the company’s leadership.

Royal Deluxe Holdings Secures Unanimous Shareholder Approval at AGM

Royal Deluxe Holdings Limited announced that all resolutions proposed at its Annual General Meeting held on August 21, 2025, were unanimously approved by shareholders. The resolutions included the adoption of financial statements, re-appointment of auditors, re-election of directors, and authorization for the board to manage share capital and director remuneration. The approval of these resolutions reflects strong shareholder support and provides the company with the flexibility to manage its capital structure effectively.

Royal Deluxe Holdings Ltd. Forms Nomination Committee to Strengthen Governance

Royal Deluxe Holdings Ltd. has established a Nomination Committee as per the rules governing the listing of securities on the Stock Exchange of Hong Kong. The committee, composed of at least three members with a majority being independent non-executive directors, is tasked with overseeing nominations and ensuring diversity, including gender diversity, within the board. This move is expected to enhance the company’s governance structure and align with best practices, potentially improving stakeholder confidence.

Royal Deluxe Holdings Strengthens Governance with New Nomination Committee Appointment

Royal Deluxe Holdings Ltd. has appointed Ms. Chao Lai Heng as a member of its Nomination Committee, effective from August 7, 2025. This change aligns with recent amendments to the Listing Rules and Corporate Governance Code, aiming to strengthen the board’s effectiveness and diversity, thereby enhancing the company’s overall corporate governance practices.

Royal Deluxe Holdings Announces Board Composition and Committee Assignments

Royal Deluxe Holdings Limited has announced the composition of its board of directors, which includes six directors, three of whom are executive directors and three are independent non-executive directors. The company has also established five committees, each with designated members, to oversee various aspects of its operations, including audit, remuneration, nomination, environmental, social and governance, and risk management. This announcement highlights the company’s commitment to structured governance and oversight, which may enhance its operational efficiency and stakeholder confidence.

Royal Deluxe Holdings Announces AGM with Key Resolutions

Royal Deluxe Holdings Limited, a company incorporated in the Cayman Islands, has announced its upcoming Annual General Meeting (AGM) scheduled for August 21, 2025, in Hong Kong. The AGM will address several key resolutions, including the adoption of the audited financial statements for the year ending March 31, 2025, the reappointment of BDO Limited as auditors, and the re-election of certain directors. Additionally, the meeting will consider authorizing the board to manage the company’s share capital, including the issuance of additional shares and convertible securities.