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

• Market Cap: €130.69M
• Dividend Yield: N/A
• Average Volume (3M): 64.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 51.93%
• EPS Growth: -374.56%
• Country: HK
• Employees: 8
• Sector: Real Estate
• Sector Strength: 56
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.65
• Shares Outstanding: 326,735,570
• 10 Day Avg. Volume: 87,156
• 30 Day Avg. Volume: 64,381
• PEG Ratio: <0.01
• Price to Book (P/B): 22.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.92
• 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: €0.46
• Price Target Upside: 14.70% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: HK$0.50 ▲(25.00%Upside)

The stock score reflects significant financial distress, as seen in the company's weak financial performance and valuation metrics. Technical analysis also suggests bearish momentum. Without positive earnings call data or corporate events to counterbalance these issues, the stock remains a high-risk investment.

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. is facing severe financial challenges, with declining revenues, persistent losses, and high leverage. The company's balance sheet is weakened by diminishing equity and high debt levels, and cash flow problems further highlight the need 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
EBITDA	7.73M	2.18M	-2.46M	-251.06M	30.29M
Net Income	-343.49M	-72.85M	-68.80M	-240.66M	93.44M
Balance Sheet
Total Assets	771.92M	1.36B	1.44B	1.55B	1.87B
Cash, Cash Equivalents and Short-Term Investments	1.65M	7.01M	2.95M	29.91M	295.95M
Total Debt	655.64M	590.45M	587.78M	604.31M	659.34M
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: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 0.4 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.44, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 36.47 is Neutral, neither overbought nor oversold. The STOCH value of 42.11 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
1749	70 Outperform	HK$129.40M	3.60	12.55%	9.00%	-6.75%	3.61%
1433	67 Neutral	HK$174.00M	2.81	28.06%	8.62%	48.01%	―
Sector *	64 Neutral	$6.97B	18.56	-1.93%	6.81%	4.65%	-25.39%
1906	54 Neutral	HK$522.25M	―	-5.04%	―	46.93%	63.40%
1388	44 Neutral	HK$168.97M	―	-19.24%	―	-10.08%	-417.56%
0036	39 Underperform	€130.69M	―	-199.48%	―	51.93%	-374.56%
K1H	―		―		―	―	―

Far East Holdings International Ltd. Corporate Events

Far East Holdings Announces Nomination Committee Changes

Far East Holdings International Limited has announced a change in the composition of its Nomination Committee. Ms. Li Kai Lai Miranda, an existing executive director, has been appointed as a member of the Nomination Committee effective June 27, 2025. This appointment aligns with the amended Corporate Governance Code and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, which require gender diversity within the committee. The change aims to enhance the company’s compliance with governance standards.

Far East Holdings International Ltd. Announces Board Composition and Roles

Far East Holdings International Ltd. has announced the composition of its board of directors and their roles within the company. The board comprises executive, non-executive, and independent non-executive directors, with committees established for audit, remuneration, nomination, and investment functions. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic decision-making and operational oversight.

Far East Holdings Announces Strategic Share Placement for Debt Repayment

Far East Holdings International Ltd. has announced a supplemental update regarding the placement of new shares under a general mandate and a connected transaction at the subsidiary level. The company plans to use the net proceeds of approximately HK$21.62 million primarily for repaying bank borrowings related to a mortgage loan and for general working capital purposes. This strategic financial maneuver is aimed at strengthening the company’s financial position by addressing existing liabilities and ensuring adequate cash flow for operational needs.

Far East Holdings Announces Share Placing and Connected Transaction

Far East Holdings International Ltd. has announced a placing of new shares under a general mandate and a connected transaction at the subsidiary level. On June 17, 2025, the company entered into a Placing Agreement with Kingston Securities Limited to issue 65,346,000 new shares at a discounted price of HK$0.344 per share. The transaction is expected to raise approximately HK$21.62 million, which will be used for general working capital, including loan repayment. The agreement is considered a connected transaction due to the involvement of Mrs. Chu, a substantial shareholder of a subsidiary, and has been approved by the company’s directors as fair and reasonable. The completion of the placing is subject to certain conditions, and stakeholders are advised to exercise caution.

Far East Holdings International Ltd. AGM Resolutions Passed

Far East Holdings International Ltd. announced the successful passing of all ordinary resolutions at their Annual General Meeting held on June 11, 2025. The resolutions included the approval of the audited financial statements for 2024, re-election of directors, authorization of directors’ remuneration, reappointment of BDO Limited as auditor, and granting of mandates to repurchase and issue shares. This outcome reflects strong shareholder support and positions the company for continued strategic actions in the market.