Far East Holdings International Ltd. (0036) AI Stock Analysis

• Market Cap: €153.57M
• Dividend Yield: N/A
• Average Volume (3M): 26.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 51.93%
• EPS Growth: -374.56%
• Country: HK
• Employees: 8
• Sector: Real Estate
• Sector Strength: 61
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.65
• Shares Outstanding: 326,735,570
• 10 Day Avg. Volume: 11,820
• 30 Day Avg. Volume: 26,340
• PEG Ratio: <0.01
• Price to Book (P/B): 26.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.65
• 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

Far East Holdings International Ltd. is facing substantial financial difficulties with declining revenues, high debt levels, and negative profitability, which significantly weigh on its stock score. The technical analysis presents mixed signals, with some longer-term support but short-term weakness and potential overbought conditions. A negative P/E ratio and lack of dividend further weaken the valuation aspect. Overall, the company's financial instability and lack of earnings visibility are major concerns for potential investors.

Far East Holdings International Ltd. Business Overview & Revenue Model

Company Description

Far East Holdings International Limited, an investment holding company, engages in the property investment and securities investment businesses in Hong Kong. It invests in commercial properties and short-term securities. The company was formerly known as Far East Technology International Limited and changed its name to Far East Holdings International Limited in 2007. Far East Holdings International Limited is based in Central, Hong Kong.

How the Company Makes Money

Far East Holdings International Ltd. generates revenue through various channels, primarily from manufacturing and trading of garments and textiles. The company capitalizes on its manufacturing capabilities to produce a wide range of apparel products, which it then sells in domestic and international markets. Additionally, through its property investment and development segment, the company earns income from leasing and selling properties. Key partnerships with distributors and retailers, alongside strategic investments in property assets, play a significant role in driving the company's earnings.

Far East Holdings International Ltd. Financial Statement Overview

Summary

Far East Holdings International Ltd. faces significant financial challenges, characterized by declining revenues, persistent losses, and high leverage. Despite some improvement in EBIT, the company's profitability remains under pressure. A weak balance sheet with diminishing equity and high debt levels poses substantial risks. The cash flow situation further exacerbates these concerns, highlighting urgent needs for financial restructuring and operational improvements.

Income Statement

Far East Holdings International Ltd. shows a declining revenue trend, with total revenue falling from 2021 to 2023 and a slight recovery in 2024. The gross profit margin in 2024 suggests no cost of goods sold, which is unusual, and the net profit margin is negative due to substantial losses. EBIT margin improved in 2024 but remains low compared to past profitable years.

Balance Sheet

The company's financial leverage is high, with a debt-to-equity ratio exceeding 85 in 2024, indicating significant financial risk. Stockholders' equity has diminished substantially, reflecting the company's ongoing financial difficulties. Return on Equity is negative due to net losses, and the equity ratio has drastically decreased, indicating a weaker financial position.

Cash Flow

Cash flow from operations has been inconsistent, with a complete lack of operating cash flow in 2024. The free cash flow has deteriorated significantly over recent years, which may impact the company's ability to fund operations and growth. A negative operating cash flow to net income ratio highlights inefficiencies in converting sales into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.17M	9.26M	4.70M	24.82M	37.25M
	Gross Profit
11.73M	6.30M	1.67M	23.92M	35.36M
	EBIT
6.67M	1.69M	-2.92M	6.35M	29.86M
	EBITDA
7.73M	2.18M	-2.46M	-251.06M	30.29M
	Net Income Common Stockholders
-343.49M	-72.85M	-68.80M	-240.66M	93.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.65M	7.01M	2.95M	29.91M	295.95M
	Total Assets
771.92M	1.36B	1.44B	1.55B	1.87B
	Total Debt
655.64M	590.45M	587.78M	604.31M	659.34M
	Net Debt
655.01M	588.78M	587.02M	593.82M	644.75M
	Total Liabilities
701.75M	661.60M	624.90M	622.64M	681.73M
	Stockholders Equity
2.37M	349.14M	421.99M	490.79M	731.45M
Cash Flow		Free Cash Flow
8.03M	5.18M	-20.58M	-220.90M	12.29M
	Operating Cash Flow
8.43M	5.18M	-20.58M	-220.57M	23.71M
	Investing Cash Flow
-399.00K	76.00K	23.97M	72.86M	-8.99M
	Financing Cash Flow
-9.08M	-4.35M	-16.53M	-55.03M	-50.36M

Far East Holdings International Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0036, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.54, and above the 200-day MA of 0.46, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.99 is Neutral, neither overbought nor oversold. The STOCH value of 46.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0036.

Far East Holdings International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$2.80B	10.72	0.24%	8543.13%	6.02%	-17.28%
0081	54 Neutral	HK$6.30B	6.09	3.05%	7.91%	-20.27%	-59.83%
0367	46 Neutral	HK$602.12M	―	-8.88%	―	-13.80%	27.58%
0036	31 Underperform	€153.57M	―	-199.48%	―	51.93%	-374.56%
0755	25 Underperform	HK$105.35M	―	-109.55%	―	-46.16%	-998.00%

Far East Holdings International Ltd. Corporate Events

Far East Holdings International Ltd. Announces 2025 AGM and Key Resolutions

Far East Holdings International Ltd. has announced its upcoming annual general meeting (AGM) scheduled for June 11, 2025, in Hong Kong. Key agenda items include reviewing the company’s financial statements for 2024, re-electing directors, and re-appointing BDO Limited as the auditor. Additionally, the company seeks shareholder approval for resolutions that allow the directors to repurchase shares and issue additional shares, which could impact the company’s financial strategy and shareholder value.

Far East Holdings Reports Increased Revenue but Significant Losses for 2024

Far East Holdings International Ltd. reported its consolidated financial results for the year ending December 31, 2024. The company experienced a significant increase in revenue from HK$9,256,000 in 2023 to HK$14,173,000 in 2024. However, the company also reported a substantial net loss of HK$620,831,000, which was a significant increase from the previous year’s loss of HK$122,582,000. The loss was primarily attributed to other gains and losses, net, which amounted to a loss of HK$579,867,000. The company’s financial performance reflects challenges in managing costs and other financial pressures, impacting its profitability and potentially affecting stakeholders.

Far East Holdings Issues Profit Warning Amid Increased Losses

Far East Holdings International Ltd. has issued a profit warning, indicating that the company expects to report an unaudited loss of at least HK$620 million for the year ending December 31, 2024. This anticipated loss is significantly higher than the HK$123 million loss reported for the previous year, primarily due to fair value loss on investment properties and increased finance costs. Stakeholders are advised to exercise caution when dealing with the company’s shares, as the financial results are yet to be finalized and audited.

Far East Holdings Schedules Board Meeting for Final Results and Dividend Decision

Far East Holdings International Ltd. has announced that its board of directors will convene a meeting on March 18, 2025, to discuss and approve the company’s final results for the year ending December 31, 2024. The meeting will also consider the potential declaration of a final dividend, which could impact shareholder returns.