Far East Consortium International (0035) AI Stock Analysis

• Market Cap: HK$2.69B
• Dividend Yield: 15.28%
• Average Volume (3M): 871.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -9.95%
• EPS Growth: -77.31%
• Country: HK
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.37
• Revenue Forecast (FY): HK$6.70B

• Rating: 54 Neutral
• Price Target: HK$0.94 ▲(4.22% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is held back primarily by weakening profitability and high leverage despite modest revenue growth, which elevates financial risk. Technicals are supportive (price above major moving averages with positive MACD) but are tempered by overbought momentum indicators. Valuation is mixed: an attractive dividend yield is offset by loss-making results (negative P/E).

Positive Factors

Diversified revenue streams

Owning three complementary revenue pillars—development sales, recurring rental income and hotel operations—improves structural resilience. Development cash inflows are lumpy, but rental and hospitality provide recurring receipts and margin diversification, stabilizing cash generation across cycles.

Geographic diversification

Presence across multiple jurisdictions spreads macro and real estate cycle risk and offers varied demand drivers. Exposure to both developed and Asian markets supports steady project pipelines and leasing opportunities, reducing dependency on any single market over the medium term.

Improving free cash flow

Material improvement in free cash flow enhances the company’s ability to service debt, fund projects and maintain distributions without relying solely on asset disposals. Stronger FCF provides a durable liquidity buffer through property cycles, supporting operational continuity.

Negative Factors

High leverage

Debt-to-equity persistently above 2 materially increases financial risk in a capital-intensive business. High leverage raises interest and refinancing vulnerability, constraining investment flexibility and heightening the chance of asset sales or equity dilution if property markets or cash flows deteriorate.

Deteriorating profitability

Falling gross and net margins and negative net income reduce retained earnings and weaken balance sheet momentum. Sustained margin pressure undermines the group’s ability to generate equity value from development projects and may force tighter cost controls or lower project returns.

Weak operating cash conversion

Poor conversion of accounting income into operating cash suggests timing or collectability issues in sales and leasing receipts. Even with higher free cash flow, weak conversion can impair debt servicing, capex funding and dividend sustainability under stress, creating structural liquidity risk.

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

Revenue grew modestly (+5.4%), but profitability deteriorated sharply with margins weakening and net margin turning negative. The balance sheet shows high leverage (debt-to-equity consistently above 2) and negative ROE, increasing financial risk. Cash flow improved, including stronger free cash flow, but conversion of income to operating cash remains weak.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.12B	9.57B	10.20B	6.61B	6.05B	6.00B
Gross Profit	1.55B	2.36B	3.46B	1.89B	2.16B	1.88B
EBITDA	1.31B	586.18M	2.23B	1.21B	1.47B	1.48B
Net Income	-1.31B	-1.00B	226.10M	172.19M	1.51B	543.19M
Balance Sheet
Total Assets	41.06B	42.54B	47.26B	53.42B	54.80B	49.90B
Cash, Cash Equivalents and Short-Term Investments	3.45B	3.18B	3.92B	6.62B	9.58B	7.81B
Total Debt	27.50B	25.69B	28.13B	35.56B	34.71B	31.19B
Total Liabilities	31.19B	29.44B	32.39B	40.68B	39.80B	35.73B
Stockholders Equity	9.57B	12.79B	14.58B	12.36B	14.63B	13.80B
Cash Flow
Free Cash Flow	2.71B	3.77B	2.16B	-3.09B	-2.42B	519.20M
Operating Cash Flow	3.45B	4.91B	3.58B	-2.20B	-1.36B	1.45B
Investing Cash Flow	-266.11M	-790.70M	-1.11B	-1.30B	-68.08M	-2.43B
Financing Cash Flow	-3.69B	-4.62B	-4.04B	1.10B	3.95B	2.27B

Far East Consortium International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.90
• 50DMA: Positive
• 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:0035, the sentiment is Positive. The current price of 0.9 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.82, and above the 200-day MA of 0.80, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 26.77 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	-10.44	-3.20%	12.10%	-17.67%	29.58%
0035	54 Neutral	HK$2.69B	-0.73	-14.14%	15.28%	-9.95%	-77.31%
0369	51 Neutral	HK$3.23B	-0.44	-10.34%	4.12%	-4.95%	-29.73%
0194	49 Neutral	HK$2.00B	24.00	-3.74%	6.35%	54.72%	59.72%
0088	49 Neutral	HK$2.44B	19.21	0.82%	6.86%	-31.03%	-31.43%
3383	41 Neutral	HK$1.41B	-0.06	-158.53%	―	-19.81%	19.55%

Far East Consortium International Corporate Events

Far East Consortium Sells UK Office and Extends Loan in Discloseable Deal

Far East Consortium International has agreed to dispose of an office property in the United Kingdom for £18 million, while its group company will extend a £38.2 million term loan to the purchaser to fund settlement of the overall transaction consideration. The aggregate consideration for the related transactions is £65.2 million, and the group expects net proceeds of about £19 million, which will be used as general working capital and is described by the board as aligned with its strategy of divesting non-core assets and advancing completion of the Hornsey-related deals.

The office disposal and the associated loan both qualify as discloseable transactions under Hong Kong listing rules, as their respective percentage ratios exceed 5% but remain below the 25% threshold. As a result, the company is subject to reporting and announcement requirements, underscoring the financial significance of the restructuring of its UK holdings and the revised payment terms for the Hornsey transactions to shareholders and other stakeholders.

The most recent analyst rating on (HK:0035) stock is a Hold with a HK$0.85 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 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.