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

• Market Cap: HK$368.74M
• Dividend Yield: N/A
• Average Volume (3M): 450.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -31.82%
• EPS Growth: -34.32%
• Country: HK
• Employees: 60
• Sector: Real Estate
• Sector Strength: 69
• Industry: Real Estate - Services
• EPS (TTM): -0.03
• Shares Outstanding: 752,529,800
• 10 Day Avg. Volume: 563,415
• 30 Day Avg. Volume: 450,929
• PEG Ratio: 0.56
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.22
• 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

• Rating: 52 Neutral
• Price Target: ―

The overall score for Far East Hotels & Entertainment Ltd. reflects significant financial and valuation challenges, with operational losses and a negative P/E ratio. The company's technical indicators show some short-term positive momentum, but the longer-term trend remains bearish. The absence of dividends further impacts its attractiveness. The company must address revenue decline and improve profitability to enhance its stock performance.

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

Company Description

Far East Hotels & Entertainment Ltd. (0037) is a diversified company based in Hong Kong, engaged primarily in the hospitality and entertainment sectors. Its core business operations include the ownership, development, and management of hotels and resorts, as well as involvement in various entertainment and leisure activities. The company is known for offering quality accommodation and entertainment services, catering to both domestic and international clients.

How the Company Makes Money

Far East Hotels & Entertainment Ltd. generates revenue through multiple streams, primarily focusing on the hospitality industry. The company earns income from its hotels and resorts by providing lodging and related services such as dining, event hosting, and recreational facilities. Additional revenue is derived from its entertainment operations, which may include activities like amusement parks, gaming facilities, and other leisure-related ventures. Significant partnerships with travel agencies, corporate clients, and online booking platforms also contribute to its earnings, enhancing its market reach and customer base.

Far East Hotels & Entertainment Ltd. Financial Statement Overview

Summary

Far East Hotels & Entertainment Ltd. faces significant financial challenges, evidenced by declining revenues, operational losses, and negative net income. Despite a strong equity base and reduced debt levels, the company struggles with cash flow issues and profitability. The focus should be on reversing revenue decline and improving operational efficiency to return to profitability.

Income Statement

The company has experienced a significant decline in revenue over the past three years, with a notable drop in TTM revenue. Gross profit margin decreased from 2023 to 2024. Net profit margin is negative, indicating losses. Both EBIT and EBITDA margins are negative, showing operational challenges.

Balance Sheet

The company maintains a strong equity base with a high equity ratio, indicating financial stability. However, the debt-to-equity ratio has improved as total debt decreased, enhancing financial flexibility. Return on equity is negative, reflecting net losses impacting shareholder returns.

Cash Flow

Operating cash flow has been negative, indicating operational cash challenges. Free cash flow is negative, showing cash outflows exceed cash inflows. However, the cash position remains strong, providing some liquidity cushion.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
23.63M	29.64M	37.17M	51.07M	49.69M	48.94M
	Gross Profit
-200.72K	5.26M	5.91M	24.67M	26.55M	25.79M
	EBIT
-26.95M	-21.79M	-16.26M	-964.87K	7.48M	7.23M
	EBITDA
-24.15M	-28.51M	-3.99M	3.42M	12.62M	-24.92M
	Net Income Common Stockholders
-48.04M	-33.02M	-7.95M	53.98M	7.89M	-24.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.59M	38.38M	53.16M	56.45M	76.59M	46.22M
	Total Assets
341.32M	364.30M	407.68M	433.36M	389.11M	361.43M
	Total Debt
12.52M	13.25M	21.08M	32.32M	43.66M	46.95M
	Net Debt
-524.53K	-8.93M	-12.34M	4.65M	11.42M	29.79M
	Total Liabilities
25.87M	26.79M	36.22M	50.53M	63.75M	64.80M
	Stockholders Equity
315.45M	337.51M	371.46M	382.83M	325.36M	296.62M
Cash Flow		Free Cash Flow
-12.51M	-19.06M	-12.96M	3.47M	16.94M	-9.62M
	Operating Cash Flow
-11.41M	-17.31M	-10.36M	4.32M	19.94M	-4.30M
	Investing Cash Flow
11.72M	19.74M	26.03M	4.97M	-13.00M	-835.32K
	Financing Cash Flow
-7.67M	-9.64M	-9.12M	-12.27M	5.15M	-6.44M

Far East Hotels & Entertainment Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0037, the sentiment is Neutral. The current price of 0.49 is below the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.48, and below the 200-day MA of 0.50, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
0012	75 Outperform	$122.73B	19.76	1.94%	10.29%	-7.64%	-32.01%
0016	73 Outperform	$248.34B	14.39	2.88%	4.83%	20.91%	-29.29%
0062	73 Outperform	HK$4.58B	24.12	1.11%	6.45%	4.19%	-54.47%
0083	70 Outperform	$75.95B	19.98	2.17%	0.24%	-30.38%	-43.73%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0084	60 Neutral	HK$78.36M	0.18	70.23%	―	-8.35%	―
0037	52 Neutral	HK$368.74M	―	-14.14%	―	-31.82%	-34.32%

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.