Far East Hotels & Entertainment Ltd. (0037) AI Stock Analysis

• Market Cap: HK$349.93M
• Dividend Yield: N/A
• Average Volume (3M): 288.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -37.46%
• EPS Growth: -7.06%
• Country: HK
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.02
• Shares Outstanding: 752,529,800
• 10 Day Avg. Volume: 403,600
• 30 Day Avg. Volume: 288,685
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: HK$0.50 ▲(8.70% Upside)

Far East Hotels & Entertainment Ltd. is currently facing significant financial challenges, with declining revenues and substantial losses impacting profitability. The technical analysis indicates bearish momentum, and the valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors contribute to a low overall stock score, highlighting the need for strategic improvements to enhance financial performance and investor appeal.

Far East Hotels & Entertainment Ltd. Business Overview & Revenue Model

Company Description

Far East Hotels & Entertainment Ltd. (0037) is a leading player in the hospitality and entertainment sector, primarily operating in the Asia-Pacific region. The company focuses on providing high-quality accommodation, leisure facilities, and entertainment services through its portfolio of hotels, resorts, and entertainment venues. With a commitment to delivering exceptional customer experiences, Far East Hotels & Entertainment Ltd. caters to both business and leisure travelers, offering a diverse range of amenities tailored to meet various guest needs.

How the Company Makes Money

Far East Hotels & Entertainment Ltd. generates revenue primarily through its hotel and resort operations, which include room bookings, food and beverage sales, and event hosting services. The company's key revenue streams consist of accommodation fees from guests, dining services in its on-site restaurants, and revenue from event spaces for conferences and weddings. Additionally, the company may engage in partnerships with travel agencies and online booking platforms to enhance its market presence and drive bookings. Seasonal promotions and loyalty programs also play a significant role in attracting repeat customers, contributing to the overall profitability of the business.

Far East Hotels & Entertainment Ltd. Financial Statement Overview

Summary

Far East Hotels & Entertainment Ltd. is facing significant financial challenges, with declining revenues and substantial losses impacting profitability. The balance sheet shows low leverage, which is a positive aspect, but the negative return on equity highlights inefficiencies. Cash flow issues further compound the company's financial difficulties, indicating a need for strategic improvements to stabilize and enhance financial performance.

Income Statement

Far East Hotels & Entertainment Ltd. has experienced a significant decline in revenue, with a negative revenue growth rate of -21.57% in the most recent year. The company is facing substantial losses, as indicated by the negative net profit margin of -190.76% and negative EBIT margin of -151.64%. The gross profit margin has decreased compared to previous years, reflecting challenges in maintaining profitability.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.036, indicating low leverage and potential stability. However, the return on equity is negative at -11.79%, suggesting inefficiencies in generating returns for shareholders. The equity ratio stands at 92.87%, which is relatively strong, but overall financial health is weakened by persistent losses.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, with a free cash flow growth rate of -11.27%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite these issues, the free cash flow to net income ratio is positive at 1.14, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.63M	18.54M	29.64M	37.17M	51.07M	49.69M
Gross Profit	-200.72K	4.24M	5.26M	5.91M	24.67M	26.55M
EBITDA	-24.15M	-23.95M	-28.51M	-3.99M	3.42M	12.62M
Net Income	-48.04M	-35.36M	-33.02M	-7.95M	53.98M	7.89M
Balance Sheet
Total Assets	341.32M	323.01M	364.30M	407.68M	433.36M	389.11M
Cash, Cash Equivalents and Short-Term Investments	22.59M	21.68M	38.38M	53.16M	56.45M	76.59M
Total Debt	12.52M	10.70M	13.25M	21.08M	32.32M	43.66M
Total Liabilities	25.87M	23.00M	26.79M	36.22M	50.53M	63.75M
Stockholders Equity	315.45M	300.00M	337.51M	371.46M	382.83M	325.36M
Cash Flow
Free Cash Flow	-12.51M	-11.10M	-19.06M	-12.96M	3.47M	16.94M
Operating Cash Flow	-11.41M	-9.72M	-17.31M	-10.36M	4.32M	19.94M
Investing Cash Flow	11.66M	4.70M	19.74M	26.03M	4.97M	-13.00M
Financing Cash Flow	-7.36M	-2.59M	-9.64M	-9.12M	-12.27M	5.15M

Far East Hotels & Entertainment Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 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:0037, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.48, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.80 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0037.

Far East Hotels & Entertainment Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1686	76 Outperform	€18.53B	19.21	19.23%	1.43%	12.91%	5.31%
0071	72 Outperform	$6.85B	9.85	3.35%	5.36%	-2.09%	-28.30%
0105	54 Neutral	HK$1.94B	―	-7.47%	6.48%	1.14%	-248.81%
Sector *	53 Neutral	$1.23B	2.93	-5.63%	5.65%	-3.91%	-97.46%
0108	46 Neutral	HK$4.09B	―	-45.23%	―	-12.09%	-610.64%
0037	42 Neutral	HK$349.93M	―	-9.12%	―	-37.46%	-7.06%

Far East Hotels & Entertainment Ltd. Corporate Events

Far East Hotels Proposes Revised Development Plan in Hong Kong

Far East Hotels and Entertainment Limited has submitted a revised application for a comprehensive development project at Kau Wa Keng, Kwai Chung, New Territories. The new plan proposes an increased development gross floor area and additional residential flats, along with enhanced retail and social welfare facilities, reflecting the company’s commitment to community needs and strategic growth.

Far East Hotels & Entertainment Ltd. Appoints New Independent Non-Executive Director

Far East Hotels & Entertainment Ltd. has appointed Mr. Lo Chun Chiu Adrian as an independent non-executive director, effective April 1, 2025. Mr. Lo will also serve as the chairman of the nomination committee and a member of both the audit and remuneration committees. This appointment aligns with the company’s compliance with specific listing rules, potentially strengthening its governance structure and enhancing its market positioning.

Far East Hotels & Entertainment Ltd. Announces Board and Committee Roles

Far East Hotels & Entertainment Ltd. has announced the composition of its board of directors and the roles they hold, including the establishment of key committees such as audit, remuneration, and nomination. This organizational structure aims to enhance corporate governance and operational oversight, potentially impacting the company’s strategic direction and stakeholder confidence.

Far East Hotels & Entertainment Ltd. Granted Extension for Director Appointment

Far East Hotels & Entertainment Ltd. announced an extension granted by the Stock Exchange of Hong Kong for the appointment of an independent non-executive director (INED) following the passing of Mr. Ng, a previous INED. The company had been working to fill the vacancy within the set three-month period but required additional time to finalize the candidate selection and nomination process. The extension allows the company until May 8, 2025, to comply with the listing rules regarding board composition, which is crucial for maintaining its governance standards.