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

• Market Cap: HK$89.85M
• Dividend Yield: N/A
• Average Volume (3M): 293.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 9.19%
• EPS Growth: 76.26%
• Country: HK
• Employees: 8
• Sector: Real Estate
• Sector Strength: 53
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.06
• Shares Outstanding: 326,735,570
• 10 Day Avg. Volume: 9,505
• 30 Day Avg. Volume: 293,016
• PEG Ratio: >-0.01
• Price to Book (P/B): 18.73
• Price to Sales (P/S): 3.13
• P/FCF Ratio: -2.09
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$0.27 ▲(66.88% Upside)
• Action: Upgraded Date: 01/17/26
• Date: Action: Upgraded 01/17/26

The score is primarily held down by weak financial performance (losses, highly leveraged balance sheet, and poor cash flow). Technicals show short-term momentum, but overbought signals add risk. Valuation is also constrained by a negative P/E and no stated dividend yield.

Positive Factors

Revenue growth recovery

A reported ~9% revenue growth metric reflects a recovery trend after prior declines. Sustained top-line improvement can help absorb fixed costs, support operating leverage and provide runway for restructuring initiatives, improving the odds of durable margin recovery.

Improving operating profitability

An improvement in EBIT margin signals the company has begun to control operating costs or enhance gross profitability. If maintained, this reduces cash burn, strengthens operating resilience and increases flexibility to service obligations and reinvest in the core apparel business.

Lean operating footprint

A very small employee base implies a low fixed-cost structure and operational flexibility. This lean profile can help preserve cash, enable quicker strategic pivots and reduce ongoing overhead while management focuses on stabilizing operations and improving cash conversion.

Negative Factors

Very high financial leverage

Debt-to-equity above 85 indicates substantial leverage and elevated refinancing and interest-rate risk. High leverage constrains capital allocation, increases default risk under stress and limits ability to invest or absorb revenue volatility, undermining long-term stability.

No operating cash flow in 2024

A complete absence of operating cash flow is a critical structural weakness: it forces reliance on external financing, reduces ability to service debt or fund working capital, and makes sustaining operations, capex or turnaround plans difficult without restructuring or new capital.

Persistent losses and shrinking equity

Ongoing net losses that shrink shareholders' equity erode the company's capital buffer and creditworthiness. Persistent negative profitability limits reinvestment, raises going-concern risk, and may force dilutive financing or asset sales to restore balance sheet strength over the medium term.

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 primarily through property rental income and sales of developed properties. The company invests in and manages a portfolio of real estate assets, which provides a steady stream of rental income from commercial and residential properties. Additionally, the company engages in property development, where it profits from the sale of newly constructed units. Key revenue streams include leasing agreements with tenants, the sale of developed properties, and potential capital appreciation of its real estate investments. Strategic partnerships with construction firms and other stakeholders in the property market also contribute to the company’s financial performance, enabling it to leverage expertise and resources for efficient project execution.

Far East Holdings International Ltd. Financial Statement Overview

Summary

Weak fundamentals: declining revenue trend with persistent losses, very high leverage (debt-to-equity >85) and shrinking equity, plus deteriorating and inconsistent cash generation including no operating cash flow in 2024.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.13M	14.17M	9.35M	4.80M	25.04M	37.94M
Gross Profit	0.00	11.73M	6.39M	1.77M	24.13M	36.05M
EBITDA	6.50M	7.73M	2.18M	-2.36M	7.05M	30.98M
Net Income	-85.93M	-343.49M	-72.85M	-68.80M	-240.66M	93.44M
Balance Sheet
Total Assets	780.53M	771.92M	1.36B	1.44B	1.55B	1.87B
Cash, Cash Equivalents and Short-Term Investments	9.13M	1.65M	7.01M	2.95M	29.91M	295.95M
Total Debt	602.70M	594.71M	590.45M	587.78M	619.28M	662.20M
Total Liabilities	657.64M	701.75M	661.60M	624.90M	622.64M	681.73M
Stockholders Equity	57.69M	2.37M	349.14M	421.99M	490.79M	731.45M
Cash Flow
Free Cash Flow	-20.84M	-21.17M	-19.78M	-17.16M	-22.26M	18.12M
Operating Cash Flow	-20.21M	-20.77M	-19.78M	-17.16M	-21.93M	18.12M
Investing Cash Flow	31.37M	16.11M	18.01M	23.97M	72.86M	13.61M
Financing Cash Flow	-3.88M	3.61M	2.67M	-16.53M	-55.03M	-50.36M

Far East Holdings International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0036, the sentiment is Positive. The current price of 0.16 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.23, and below the 200-day MA of 0.28, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 79.78 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1433	70 Outperform	HK$186.00M	1.58	22.49%	7.89%	14.30%	125.41%
1749	70 Outperform	HK$100.05M	2.47	11.95%	12.12%	-7.88%	-4.49%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1906	46 Neutral	HK$838.54M	94.42	-5.91%	―	5.88%	16.82%
1388	45 Neutral	HK$164.74M	-0.79	-20.24%	―	-6.47%	-118.56%
0036	44 Neutral	HK$89.85M	-2.07	-132.36%	―	9.19%	76.26%

Far East Holdings International Ltd. Corporate Events

Far East Holdings Ordered to Suspend Trading After Hong Kong Listing Review Ruling

Far East Holdings International Ltd. has been ordered by the Listing Review Committee of the Hong Kong Stock Exchange to suspend trading in its shares after the committee upheld an earlier decision finding the company in breach of listing rules requiring sufficient operations and asset value to justify its continued listing. The committee cited the minimal scale and revenue of the group’s existing property investment business, an unclear strategy with only preliminary progress on proposed acquisitions, and unresolved liquidity concerns, including ongoing lender negotiations and conditional fundraising plans, concluding that the company currently lacks the operational scale and financial resources needed to support its listing; trading in the shares will be suspended from 3 February 2026, with further announcements to follow.

The most recent analyst rating on (HK:0036) stock is a Hold with a HK$0.27 price target. To see the full list of analyst forecasts on Far East Holdings International Ltd. stock, see the HK:0036 Stock Forecast page.

Far East Holdings Seeks Final Review of Listing Decision

Far East Holdings International Limited has submitted a request to the Listing Review Committee of the Hong Kong Stock Exchange for a final review of a previous decision regarding its listing status. The company has informed its shareholders and potential investors about the uncertainty of the review outcome, which could result in the suspension of its share trading if the decision is upheld. The company will provide further updates as necessary.

The most recent analyst rating on (HK:0036) stock is a Sell with a HK$0.50 price target. To see the full list of analyst forecasts on Far East Holdings International Ltd. stock, see the HK:0036 Stock Forecast page.