Far East Consortium International (0035) AI Stock Analysis

• Market Cap: HK$2.45B
• Dividend Yield: 15.28%
• Average Volume (3M): 871.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -9.95%
• EPS Growth: -77.31%
• Country: US
• Employees: 4,500
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.07
• Shares Outstanding: 3,059,040,500
• 10 Day Avg. Volume: 778,594
• 30 Day Avg. Volume: 871,460
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 0.65
• 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: HK$0.93
• Price Target Upside: 16.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.78 ▼(-2.50% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. The company's high leverage and declining profitability are significant concerns. Technical indicators suggest a bearish trend, adding to the risk profile. While the high dividend yield is a positive aspect, it is overshadowed by the negative P/E ratio and financial challenges.

Positive Factors

Diversified revenue streams

Multiple, distinct income sources (property sales, recurring rental income, and hospitality revenue) reduce reliance on one cycle. This structural diversification supports steadier cash flows and operational resilience across real estate and hospitality cycles over the medium term.

Improving cash generation

A notable rise in operating cash flow and free cash flow enhances the company’s ability to service debt, fund developments and sustain distributions without relying solely on asset sales. Strong FCF supports balance sheet repairs and strategic investments over coming quarters.

Integrated projects and partnerships

Focus on integrated, mixed-use developments and formal partnerships with public and private parties creates long-term project pipelines, access to land and de-risked execution. These partnerships and project complexity can generate structural competitive advantages and recurring revenue.

Negative Factors

High financial leverage

Very high leverage raises refinancing and interest-rate sensitivity, limiting strategic flexibility. With a debt-to-equity ratio >2, cash flow volatility or weaker property market conditions could strain coverage metrics and constrain capex or payout policies for several quarters.

Deteriorating profitability

Negative net margins indicate the business is not currently generating economic profit from operations. Persistent margin erosion reduces retained earnings, weakens credit metrics, and limits reinvestment capacity, undermining long-term growth and financial stability.

Weak revenue and EPS trends

Material declines in top-line and EPS reflect demand or execution issues that impair earnings power. Continued revenue and EPS contraction will make deleveraging harder, limit free cash flow improvement, and pressure stakeholder confidence over the medium term.

Far East Consortium International Business Overview & Revenue Model

Company Description

Far East Consortium International Limited, an investment holding company, engages in the property development and investment, hotel operations and management, car park operations and facilities management, gaming and related operations, and securities and financial product investments. It develops a portfolio of residential properties; invests in retail and office buildings; and operates hotels. The company also operates third party and self-owned car parks; and owns and operates casinos and gaming facilities, as well as operated bars. In addition, it provides loan financing, sales agency, mortgage, administration and management, treasury management, vault, and hotel management and consultancy services. As of March 31, 2022, the company owned and operated 31 hotels with approximately 8,149 rooms; and managed 424 car parks with approximately 120,200 car parking bays. It has operations in Australia, New Zealand, Hong Kong, Malaysia, the Czech Republic, the People's Republic of China, Singapore, the United Kingdom, and the rest of Europe. The company was incorporated in 1990 and is based in Central, Hong Kong.

How the Company Makes Money

Far East Consortium generates revenue through multiple key streams including property sales, rental income, and hotel operations. The company develops and sells residential and commercial properties, which contributes significantly to its revenue. Rental income from its property portfolio, including shopping malls, offices, and residential units, provides a steady cash flow. Furthermore, the hospitality segment, which includes hotel management and operations, contributes to the earnings through room bookings and related services. Strategic partnerships with local governments and other private entities for large-scale developments and infrastructure projects also play a crucial role in enhancing its revenue potential.

Far East Consortium International Financial Statement Overview

Summary

Far East Consortium International faces challenges in profitability and leverage, with declining margins and high debt levels. While revenue growth is positive, the company needs to address operational inefficiencies and manage its debt to improve financial stability. Cash flow improvements are a positive sign, but overall financial health requires careful management.

Income Statement

The company's revenue has shown moderate growth over the years, with a 5.4% increase in the latest year. However, profitability metrics such as the net profit margin have deteriorated significantly, turning negative in the most recent year. The gross profit margin has also declined, indicating potential cost pressures. The EBIT and EBITDA margins have decreased, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which has been consistently above 2, indicating significant leverage. This poses a risk, especially with declining profitability. Return on equity has turned negative, reflecting the impact of net losses. The equity ratio is relatively stable, but the high leverage remains a concern.

Cash Flow

Cash flow from operations has improved significantly, with a notable increase in free cash flow. However, the operating cash flow to net income ratio is low, indicating potential issues in converting income to cash. The free cash flow to net income ratio is relatively strong, suggesting better cash management despite profitability challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.57B	9.57B	10.20B	6.61B	6.05B	6.00B
Gross Profit	2.36B	2.36B	3.46B	1.89B	2.16B	1.88B
EBITDA	1.38B	586.18M	2.23B	1.21B	1.47B	1.48B
Net Income	-1.17B	-1.00B	226.10M	172.19M	1.51B	543.19M
Balance Sheet
Total Assets	42.54B	42.54B	47.26B	53.42B	54.80B	49.90B
Cash, Cash Equivalents and Short-Term Investments	3.18B	3.18B	3.92B	6.62B	9.58B	7.81B
Total Debt	25.69B	25.69B	28.13B	35.56B	34.71B	31.19B
Total Liabilities	29.44B	29.44B	32.39B	40.68B	39.80B	35.73B
Stockholders Equity	12.79B	12.79B	14.58B	12.36B	14.63B	13.80B
Cash Flow
Free Cash Flow	2.14B	3.77B	2.16B	-3.09B	-2.42B	519.20M
Operating Cash Flow	3.13B	4.91B	3.58B	-2.20B	-1.36B	1.45B
Investing Cash Flow	-869.36M	-790.70M	-1.11B	-1.30B	-68.08M	-2.43B
Financing Cash Flow	-2.79B	-4.62B	-4.04B	1.10B	3.95B	2.27B

Far East Consortium International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.80
• 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:0035, the sentiment is Positive. The current price of 0.8 is above the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.74, and above the 200-day MA of 0.80, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0035.

Far East Consortium International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0026	60 Neutral	HK$2.66B	-14.39	-2.63%	12.10%	-17.67%	29.58%
0369	51 Neutral	HK$2.74B	-1.11	-11.42%	4.12%	-4.95%	-29.73%
0194	49 Neutral	HK$1.68B	-4.21	-3.74%	6.35%	54.72%	59.72%
0035	45 Neutral	HK$2.45B	-1.64	-14.14%	15.28%	-9.95%	-77.31%
0088	45 Neutral	HK$2.33B	44.77	0.82%	6.86%	-31.03%	-31.43%
3383	37 Underperform	HK$1.34B	-0.08	-158.53%	―	-19.81%	19.55%

Far East Consortium International Corporate Events

Far East Consortium to Divest Prime Kuala Lumpur Assets in Connected Transaction

Far East Consortium International Limited has agreed to dispose of certain Malaysian assets located in a prime area of Kuala Lumpur for MYR55 million (approximately HK$104.5 million) through a conditional sale and purchase agreement dated 22 December 2025 between its subsidiary Target Term Sdn. Bhd. and Surplus Pact (MM2H) Sdn. Bhd. The consideration, aligned with an independent valuation, will be paid via a 10% deposit and a balance upon completion, and the deal is positioned as part of the group’s strategy to divest non-core assets and realise gains based on the estimated book value at completion. As the purchaser is indirectly wholly owned by the company’s CEO and controlling shareholder, Tan Sri Dato’ David Chiu, and his spouse, the disposal constitutes a connected transaction under Hong Kong listing rules, triggering reporting and announcement requirements but falling within the lower disclosure threshold given the small percentage ratio involved.

The most recent analyst rating on (HK:0035) stock is a Buy with a HK$0.93 price target. To see the full list of analyst forecasts on Far East Consortium International stock, see the HK:0035 Stock Forecast page.

Far East Consortium Announces Major Transaction Involving Ritz Carlton Perth

Far East Consortium International Limited has announced a discloseable transaction involving the sale of the Ritz Carlton Hotel in Perth, Australia. The transaction, valued at A$100 million, involves the sale of shares and the assignment of a loan, subject to specific terms and conditions. This strategic move is expected to impact the company’s financial positioning and market presence, aligning with its ongoing business strategies.

The most recent analyst rating on (HK:0035) stock is a Buy with a HK$0.93 price target. To see the full list of analyst forecasts on Far East Consortium International stock, see the HK:0035 Stock Forecast page.

Far East Consortium Reports Revenue Decline Amid Strategic Growth Initiatives

Far East Consortium International Limited reported a 27.4% decrease in revenue for the first half of fiscal year 2026, attributed to fewer residential property developments completed compared to the previous year. Despite this, the company improved its financial position by reducing total bank loans and net debt, and it continues to focus on its core businesses and strategic initiatives, including new property developments and expansions in hotel operations, to support long-term growth.

The most recent analyst rating on (HK:0035) stock is a Hold with a HK$0.68 price target. To see the full list of analyst forecasts on Far East Consortium International stock, see the HK:0035 Stock Forecast page.

Far East Consortium Issues Profit Warning Amidst Impairment Losses

Far East Consortium International Limited has issued a profit warning, indicating an expected loss of up to HK$990 million for the six months ending September 30, 2025, primarily due to decreased property sales and various impairment losses. Despite the anticipated loss, the company projects an improvement in adjusted cash profit and net gearing ratio, suggesting potential financial resilience and a strategic focus on stabilizing its financial position.

The most recent analyst rating on (HK:0035) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Far East Consortium International stock, see the HK:0035 Stock Forecast page.

Far East Consortium Details Transactions with The Star Group

Far East Consortium International Limited has announced further details regarding its transactions with The Star Group, which involve the transfer of interests in the DGCC and Charlotte Street Car Park. The company will no longer hold equity in DGCC, while maintaining a joint venture interest in Charlotte Street JV. A significant aspect of the transaction includes a financial arrangement where the Joint Venture Partners provided a loan to support The Star’s liquidity, secured by future proceeds from apartment sales in Tower 2 (Andaz). This strategic move is expected to stabilize The Star’s financial position and align with the asset swap structure outlined in the Implementation Deed.

The most recent analyst rating on (HK:0035) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Far East Consortium International stock, see the HK:0035 Stock Forecast page.

Far East Consortium Schedules Board Meeting for Interim Results

Far East Consortium International Limited announced that its board of directors will meet on November 27, 2025, to approve the consolidated interim results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend, which could impact shareholder returns and reflect the company’s financial health.

The most recent analyst rating on (HK:0035) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Far East Consortium International stock, see the HK:0035 Stock Forecast page.

Far East Consortium Announces Potential Sale of Perth Ritz Carlton Interests

Far East Consortium International Limited has announced a potential transaction involving the sale of certain interests in The Ritz Carlton Hotel in Perth, Australia, to a subsidiary of AMTD Group Inc. The transaction, which involves an initial payment of A$20 million, is not yet finalized and remains subject to the signing of a definitive agreement. If completed, this transaction will result in joint ownership of the hotel by Far East Consortium and AMTD Group, potentially impacting the company’s financial standing and market operations.

The most recent analyst rating on (HK:0035) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Far East Consortium International stock, see the HK:0035 Stock Forecast page.