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

• Market Cap: HK$349.93M
• Dividend Yield: N/A
• Average Volume (3M): 219.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.60
• Revenue Growth: -32.80%
• EPS Growth: 57.37%
• Country: HK
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.01
• Shares Outstanding: 752,529,800
• 10 Day Avg. Volume: 417,400
• 30 Day Avg. Volume: 219,066
• PEG Ratio: -1.28
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 17.25
• P/FCF Ratio: -28.81
• 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: 41 Neutral
• Price Target: HK$0.50 ▲(8.70% Upside)

Far East Hotels & Entertainment Ltd. faces significant financial challenges, with declining revenues and substantial losses being the most impactful factors. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative profitability. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Low Leverage

Low leverage suggests potential financial stability, providing flexibility to manage financial obligations and invest in growth opportunities without excessive debt burden.

Strong Equity Ratio

A strong equity ratio indicates a solid capital structure, enhancing the company's ability to withstand economic downturns and invest in long-term strategic initiatives.

Free Cash Flow Coverage

Positive free cash flow coverage suggests the company can cover net losses with free cash flow, providing some resilience in maintaining operations and funding essential activities.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market competitiveness and demand, which could hinder the company's ability to sustain operations and invest in future growth.

Substantial Losses

Substantial losses reflect operational inefficiencies and market challenges, potentially impacting the company's ability to reinvest in its business and maintain financial health.

Negative Cash Flow

Negative cash flow indicates liquidity challenges, limiting the company's ability to fund operations, invest in growth, and meet financial obligations without external financing.

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

Company Description

Far East Hotels and Entertainment Limited, an investment holding company, engages in the hotel operation, property investment and letting, and securities investment and trading business in Hong Kong and Mainland China. It operates and manages the Cheung Chau Warwick Hotel in Cheung Chau, Hong Kong. The company was incorporated in 1978 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Far East Hotels & Entertainment Ltd. generates revenue primarily through its hotel operations, which include room bookings, food and beverage services, and event hosting. The company earns significant income from room sales, particularly during peak tourist seasons and through corporate contracts. Additionally, the entertainment segment contributes to revenue through ticket sales, venue rentals, and special events. Strategic partnerships with travel agencies, event organizers, and local attractions enhance the company's visibility and attract a broader customer base, further driving revenue growth. The company may also benefit from loyalty programs and promotional packages that encourage repeat business.

Far East Hotels & Entertainment Ltd. Financial Statement Overview

Summary

Far East Hotels & Entertainment Ltd. is experiencing significant financial challenges, with declining revenues and substantial losses impacting profitability. Despite a low debt-to-equity ratio indicating low leverage, the negative return on equity and cash flow issues highlight inefficiencies and financial instability.

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	18.54M	18.54M	29.64M	37.17M	51.07M	49.69M
Gross Profit	4.24M	4.24M	5.26M	5.91M	24.67M	26.55M
EBITDA	-15.60M	-23.95M	-28.51M	-3.40M	57.83M	11.05M
Net Income	-35.36M	-35.36M	-33.02M	-7.95M	53.98M	7.89M
Balance Sheet
Total Assets	323.01M	323.01M	364.30M	407.68M	433.36M	389.11M
Cash, Cash Equivalents and Short-Term Investments	21.68M	21.68M	38.38M	53.16M	56.45M	76.59M
Total Debt	10.70M	10.70M	13.25M	21.08M	32.32M	43.66M
Total Liabilities	23.00M	23.00M	26.79M	36.22M	50.53M	63.75M
Stockholders Equity	300.00M	300.00M	337.51M	371.46M	382.83M	325.36M
Cash Flow
Free Cash Flow	-19.08M	-11.10M	-19.06M	-12.96M	3.47M	16.94M
Operating Cash Flow	-17.70M	-9.72M	-17.31M	-10.36M	4.32M	19.94M
Investing Cash Flow	4.58M	4.70M	19.74M	26.03M	4.97M	-13.00M
Financing Cash Flow	-2.01M	-2.59M	-9.64M	-9.12M	-12.27M	5.15M

Far East Hotels & Entertainment Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0037, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.44, and below the 200-day MA of 0.46, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 83.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0071	69 Neutral	HK$7.16B	10.29	3.35%	5.29%	-2.09%	-28.30%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1686	63 Neutral	HK$12.30B	12.48	18.68%	2.54%	9.90%	7.68%
0105	49 Neutral	HK$1.87B	-8.58	-3.07%	10.10%	-2.39%	61.81%
0108	43 Neutral	HK$9.24B	-10.79	-44.97%	―	-16.28%	-444.68%
0037	41 Neutral	HK$349.93M	-16.91	-4.23%	―	-32.80%	57.37%

Far East Hotels & Entertainment Ltd. Corporate Events

Far East Hotels Reports Reduced Losses in Interim Results

Far East Hotels and Entertainment Limited reported its interim financial results for the six months ending September 30, 2025, revealing a significant reduction in losses compared to the previous year. The company experienced a decrease in revenue from continuing operations but managed to reduce its overall loss due to lower administrative expenses and a smaller net decrease in the fair value of investment properties. Despite the improvement, the company still faces challenges in its operations, particularly with discontinued operations contributing to the overall loss.

The most recent analyst rating on (HK:0037) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Far East Hotels & Entertainment Ltd. stock, see the HK:0037 Stock Forecast page.

Far East Hotels Announces Change of Registered Office Address

Far East Hotels and Entertainment Limited has announced a change in its registered office address, effective from December 1, 2025. The new address will be Unit 1004, 10th Floor, Harcourt House, 39 Gloucester Road, Wan Chai, Hong Kong. This change is part of the company’s ongoing operational adjustments, but all contact numbers will remain the same, ensuring continuity in communication.

The most recent analyst rating on (HK:0037) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Far East Hotels & Entertainment Ltd. stock, see the HK:0037 Stock Forecast page.

Far East Hotels and Entertainment Issues Profit Warning Amid Revenue Decline

Far East Hotels and Entertainment Limited has issued a profit warning, indicating an expected net loss of approximately HK$8 million for the six months ended 30 September 2025. This anticipated loss is primarily attributed to a decrease in the fair value of the company’s investment properties and a decline in revenue from its hotel operations in Hong Kong and serviced property letting in Mainland China. The interim results are yet to be finalized and will be disclosed by the end of November 2025.

The most recent analyst rating on (HK:0037) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Far East Hotels & Entertainment Ltd. stock, see the HK:0037 Stock Forecast page.

Far East Hotels Announces Board Meeting to Review Financials and Dividend

Far East Hotels and Entertainment Limited has announced a board meeting scheduled for November 27, 2025, to discuss and approve the unaudited consolidated financial results for the six months ending September 30, 2025. The meeting will also consider the declaration of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

The most recent analyst rating on (HK:0037) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Far East Hotels & Entertainment Ltd. stock, see the HK:0037 Stock Forecast page.