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

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HK:0036

Far East Holdings International Ltd.

(Stuttgart:0036)

Rating:38Underperform
Price Target:
HK$0.50
▲(56.25% Upside)
Far East Holdings International Ltd. receives a low overall score due to substantial financial difficulties, including declining revenues, persistent losses, and high leverage. Technical indicators suggest a bearish trend with negative momentum, while valuation metrics show poor financial health with a negative P/E ratio and no dividend yield. The lack of positive factors or upcoming corporate events further emphasizes the need for significant improvements.

Far East Holdings International Ltd. (0036) vs. iShares MSCI Hong Kong ETF (EWH)

Far East Holdings International Ltd. Business Overview & Revenue Model

Company DescriptionFar East Holdings International Ltd. (0036) is a diversified investment holding company based in Hong Kong. The company engages primarily in investment holding and securities trading. It also operates in other sectors, including property investment and development as well as manufacturing and sale of garments. Far East Holdings International Ltd. aims to leverage its strategic investments and diversified portfolio to generate sustainable growth and profitability.
How the Company Makes MoneyThe company makes money through a combination of investment income, rental income from property investments, and revenue from the manufacturing and sale of garments. Key revenue streams include dividends and capital gains from its investment portfolio, which primarily consists of securities trading. The property investment segment contributes through rental income and potential appreciation in property values. Additionally, the garment manufacturing segment generates revenue through the production and sale of clothing items. Strategic partnerships and market conditions can significantly influence the company's earnings, particularly in securities trading and property investment.

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
30
Negative
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
25
Negative
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
20
Very Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.17M9.26M4.70M24.82M37.25M
Gross Profit11.73M6.30M1.67M23.92M35.36M
EBITDA7.73M2.18M-2.46M-251.06M30.29M
Net Income-343.49M-72.85M-68.80M-240.66M93.44M
Balance Sheet
Total Assets771.92M1.36B1.44B1.55B1.87B
Cash, Cash Equivalents and Short-Term Investments1.65M7.01M2.95M29.91M295.95M
Total Debt655.64M590.45M587.78M604.31M659.34M
Total Liabilities701.75M661.60M624.90M622.64M681.73M
Stockholders Equity2.37M349.14M421.99M490.79M731.45M
Cash Flow
Free Cash Flow8.03M5.18M-20.58M-220.90M12.29M
Operating Cash Flow8.43M5.18M-20.58M-220.57M23.71M
Investing Cash Flow-399.00K76.00K23.97M72.86M-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 Price0.32
Price Trends
50DMA
0.42
Negative
100DMA
0.46
Negative
200DMA
0.44
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
35.55
Neutral
STOCH
33.23
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 0.32 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.42, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.55 is Neutral, neither overbought nor oversold. The STOCH value of 33.23 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$124.06M3.4512.55%9.09%-6.75%3.61%
67
Neutral
HK$212.00M3.4228.06%7.21%48.01%
53
Neutral
$1.19B3.49-2.19%6.01%-2.24%-167.40%
44
Neutral
HK$192.20M-19.24%-10.08%-417.56%
41
Neutral
HK$456.05M-5.04%46.93%63.40%
38
Underperform
HK$94.75M-199.48%51.93%-374.56%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0036
Far East Holdings International Ltd.
0.29
-0.32
-52.46%
HK:1906
Bonny International Holding Ltd.
0.31
0.05
19.23%
HK:1749
Shanshan Brand Management Co. Ltd. Class H
0.93
0.17
22.37%
HK:1433
Cirtek Holdings Limited
0.11
0.07
175.00%
HK:1388
Embry Holdings Limited
0.46
0.18
64.29%

Far East Holdings International Ltd. Corporate Events

Far East Holdings Faces Trading Suspension Amid Operational Challenges
Jul 31, 2025

Far East Holdings International Ltd. has been notified by the Hong Kong Stock Exchange that it has failed to maintain sufficient operations to warrant the continued listing of its shares, leading to a suspension of trading. Despite attempts to recover from socio-economic challenges and the pandemic, the company’s operations remain small and unsustainable, with minimal revenue and continued losses. Plans to expand through acquisitions are preliminary and uncertain, and the company faces financial challenges, including insufficient resources to settle upcoming loans. The potential acquisitions could constitute reverse takeovers, further complicating the company’s situation.

Far East Holdings Eyes Property Sector Expansion with Potential Acquisition
Jul 31, 2025

Far East Holdings International Ltd. has announced a memorandum of understanding for a potential acquisition of a target group involved in the property business. The agreement includes an exclusivity period and due diligence review, with the aim to negotiate a sale and purchase agreement. This move could potentially enhance the company’s market position and expand its property portfolio, pending satisfactory due diligence and valuation.

Far East Holdings Eyes Macau Hotel Acquisition
Jul 22, 2025

Far East Holdings International Ltd. has entered into a memorandum of understanding to potentially acquire a target company that owns a hotel property in Macau. This strategic move, subject to due diligence and valuation, could enhance the company’s portfolio in the hospitality industry, offering potential growth opportunities and strengthening its market position.

Far East Holdings Announces Nomination Committee Changes
Jun 27, 2025

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
Jun 27, 2025

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
Jun 25, 2025

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
Jun 17, 2025

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
Jun 11, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025