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Royale Home Holdings (1198) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$156M

RH Royale Home Holdings 1198 · HK
PriceHK$0.0880
Fair ValueHK$0.1702
Upside+93.4%
Quality27/100
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Weak Growth
Loss-making · -158.2% net margin
High debt · negative free cash flow
Trails peers (2/9)
Narrow moat 0/100
Evidence: Low Range HK$0.1322 – HK$0.2462 Share as image

Fair value as of: Aug 5, 2026

From 1 valuation models · updated 5 days ago

Fair value updated Aug 5, 2026, revised from HK$0.1493 to HK$0.1702 (+14.0%) since Jul 2, 2026. Share price −19.3% over the past month.

Below-average quality, screening 93% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (27/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$0.1322). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (HK$0.1322 to HK$0.2462) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$3.02 HK$0.0580 Fair Value HK$0.1702 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.

How to read this chart

60‑month range HK$0.0580 – HK$3.02 · fair‑value band HK$0.1322 – HK$0.2462 · the HK$0.0880 price screens below the HK$0.1702 fair value. Dashed = 300-day average. As of Aug 5, 2026.

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Analysis

Royale Home Holdings (1198) currently trades at HK$0.0880, while our model-based Fair Value estimate is HK$0.1702, implying the stock looks roughly 93.4% undervalued today. The Quality Score stands at 27/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Trailing-twelve-month revenue stands at HK$381M. Revenue declined 24.0% year over year. It earns a return on equity of -57.2%. Net debt stands at HK$3.2B. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$0.1322 (bear case) to HK$0.2462 (bull case); at HK$0.0880, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 76% below its 52-week high and 47% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 16% fair-value upside, at 93%, 1198 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
NCAV (Graham) HK$0.1300 HK$0.1700 HK$0.2600 50
All 1 models by family
Asset-Based
NCAV (Graham) HK$0.1300 HK$0.1700 HK$0.2600 50

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Key figures & financial health

Revenue (TTM) HK$381M
Revenue growth (YoY) -24.0%
Net margin -158%
Return on equity -57.2%
Free cash flow −HK$494M FY2025
Operating margin -71.7%
More key figures
EPS (TTM) HK$-0.1100
EPS growth (YoY) -49.6%
Net debt HK$3.2B FY2025

Figures from reported company fundamentals · as of Aug 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 27/100

Of which business quality 25 · Market factors (momentum, volatility) 21

Profitability 0
Margins and returns on capital today
Quality Growth 8
Are margins and returns improving?
Cashflow 5
Earnings quality: real cash, not paper profit
Fin. Strength 3
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Royale Home Holdings Limited, an investment holding company, engages in the manufacture and sale of furniture in the People's Republic of China. It operates through the Manufacture and Sale of Furniture; Development Properties for Sales and Property Investments; and Hotel Operations segments.

Full company description

Royale Home Holdings Limited, an investment holding company, engages in the manufacture and sale of furniture in the People's Republic of China. It operates through the Manufacture and Sale of Furniture; Development Properties for Sales and Property Investments; and Hotel Operations segments. The company offers bedroom, living room, dining room, study, home visit, cloakroom, and balcony products under the Royal brand; and decoration services. It is also involved in development of properties for sale and property investments; hotel operations; trading of commodities; rental of properties; and sale of upholstered furniture. The company was formerly known as Royale Furniture Holdings Limited and changed its name to Royale Home Holdings Limited in June 2020. Royale Home Holdings Limited was founded in 1997 and is headquartered in Tsim Sha Tsui East, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Royale Home Holdings reported revenue of HK$424M in FY2025 versus HK$1.5B in FY2021, a compound −27.4%/yr. Reported net income was −HK$671M in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$424M
Latest YoY
−24.2%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−37.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−21.7%
Avg. growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.0%
Revenue −27.4%/yr
FY21 HK$1.5B
FY22 HK$1.7B
FY23 HK$911M
FY24 HK$559M
FY25 HK$424M
Net income
FY21 HK$76.9M
FY22 HK$5.6M
FY23 −HK$422M
FY24 −HK$356M
FY25 −HK$671M

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Cite: Fair Value Calculator (2026). "Royale Home Holdings Fair Value". https://www.fairvalue-calculator.com/stock/1198

Peer Group

Furnishings, Fixtures & Appliances · 311 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 25 · Bottom 25%
Fair Value upside +93% · Top 25%
Return on assets -3% · Bottom 25%
Net margin (TTM) -158% · Bottom 25%
Operating margin (TTM) -72% · Bottom 25%
Revenue growth -24% · Bottom 25%
Debt / equity 3.80× · Higher than 75% of peers

Valuation Multiples vs Furnishings, Fixtures & Appliances median · lower = cheaper

P/S (TTM) 0.05× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 22
FUTURE 0 · sector 0
PAST 0 · sector 19
HEALTH 0 · sector 97
DIVIDEND 0 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Aug 5, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥82.71 ¥107.22 +30%
Gree Electric Appliances, Inc 000651 ¥38.25 ¥88.02 +130%
Haier Smart Home Co 600690 ¥21.46 ¥36.04 +68%
King Slide Works Co 2059 8,655 TWD 1,917 TWD -78%
Guangdong Songfa Ceramics Co 603268 ¥155.59 ¥38.95 -75%
SharkNinja, Inc SN $154.53 $89.07 -42%
Hisense Home Appliances Group 000921 ¥26.33 ¥48.03 +82%
Zhejiang Supor Co 002032 ¥43.85 ¥44.84 +2%
COWAY Co 021240 96,700 KRW 112,530 KRW +16%
Ecovacs Robotics Co 603486 ¥50.13 ¥54.11 +8%

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Frequently asked questions

Is Royale Home Holdings (1198) overvalued or undervalued?
As of Aug 5, 2026, our model estimates a fair value of HK$0.1702 versus a price of HK$0.0880, about +93% (undervalued).
What is the fair value of 1198?
Our model-based fair value for Royale Home Holdings is HK$0.1702 (as of Aug 5, 2026), built from audited fundamentals. The current price is HK$0.0880.
What is the quality score of 1198?
Royale Home Holdings has a Quality Score of 27/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Royale Home Holdings (1198)?
Royale Home Holdings reported trailing-twelve-month revenue of about HK$381M (latest available figure, as of Aug 5, 2026).
What is the net profit margin of 1198?
The net profit margin of Royale Home Holdings is about -158.2%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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