FSE Lifestyle Services Limited (0331) AI Stock Analysis

• Market Cap: HK$2.57B
• Dividend Yield: 3.69%
• Average Volume (3M): 70.49K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.23
• Revenue Growth: 3.11%
• EPS Growth: -2.34%
• Country: HK
• Employees: 16,115
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): 0.53
• Shares Outstanding: 450,000,000
• 10 Day Avg. Volume: 78,472
• 30 Day Avg. Volume: 70,486
• PEG Ratio: 1.43
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.63
• 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: 78 Outperform
• Price Target: ―

FSE Lifestyle Services Limited's strong financial performance and attractive valuation significantly contribute to its overall score. The company's consistent revenue growth, high return on equity, and prudent financial structure are major strengths. Additionally, the low P/E ratio and high dividend yield enhance its appeal. However, technical indicators suggest a neutral market sentiment, moderating the overall score.

FSE Lifestyle Services Limited Business Overview & Revenue Model

Company Description

FSE Lifestyle Services Limited (0331) is a Hong Kong-based company that operates in various sectors, including facilities management, environmental services, and engineering services. The company provides comprehensive solutions to enhance the efficiency and sustainability of building operations, ensuring quality and safety in various environments.

How the Company Makes Money

FSE Lifestyle Services Limited generates revenue through a diversified portfolio of services. The company's key revenue streams include facilities management services, which involve maintaining and operating building systems, and environmental services that focus on waste management and recycling solutions. Additionally, the engineering services sector provides design, installation, and maintenance of mechanical and electrical systems. The company benefits from long-term contracts with both private and public sector clients, ensuring a steady flow of income. Partnerships with technology providers enhance their service offerings, contributing to additional revenue through innovative solutions.

FSE Lifestyle Services Limited Financial Statement Overview

Summary

FSE Lifestyle Services Limited exhibits strong financial performance with consistent revenue growth and profitability. The balance sheet reflects a prudent financial structure with modest leverage and high return on equity. While cash flow generation has seen some decline, overall cash management remains efficient. The company is well-positioned in the engineering and construction industry, with solid operational metrics and financial stability.

Income Statement

FSE Lifestyle Services Limited has demonstrated consistent revenue growth over the years, with a revenue increase of approximately 8.77% from 2023 to 2024. The gross profit margin for 2024 stands at 12.54%, and the net profit margin is 5.93%, indicating effective cost management and profitability. The EBIT and EBITDA margins, at 6.99% and 8.13% respectively, are strong for the industry, showcasing operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 0.28, indicating a conservative approach to leveraging, which enhances financial stability. Return on equity is robust at 50.70%, highlighting the company's ability to generate profits from shareholders' equity. The equity ratio of 25.02% suggests adequate equity financing relative to assets, though there is room for improvement in asset leverage.

Cash Flow

The cash flow analysis shows a decline in operating cash flow from the previous year, suggesting potential challenges in cash generation from operations. However, the free cash flow to net income ratio remains healthy at 0.28, indicating effective conversion of earnings into free cash flow. The company has maintained positive free cash flow, though the growth rate has decreased.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	8.42B	8.45B	7.77B	6.97B	6.45B	5.66B
Gross Profit	1.06B	1.06B	1.05B	988.20M	1.13B	940.17M
EBITDA	624.90M	684.89M	708.26M	653.89M	726.17M	579.46M
Net Income	487.29M	501.10M	522.90M	502.94M	586.91M	412.16M
Balance Sheet
Total Assets	4.06B	3.95B	3.99B	3.60B	3.05B	3.74B
Cash, Cash Equivalents and Short-Term Investments	622.36M	601.29M	751.90M	767.04M	549.89M	894.82M
Total Debt	459.23M	276.60M	355.99M	504.07M	426.69M	526.54M
Total Liabilities	2.93B	2.96B	3.29B	3.16B	2.95B	3.02B
Stockholders Equity	1.13B	988.54M	699.15M	413.45M	77.51M	716.36M
Cash Flow
Free Cash Flow	272.91M	115.17M	409.35M	403.28M	523.99M	421.55M
Operating Cash Flow	302.41M	146.00M	448.20M	418.18M	542.73M	444.07M
Investing Cash Flow	-85.19M	-1.74M	-58.55M	-13.98M	-486.89M	-623.06M
Financing Cash Flow	-121.07M	-301.06M	-399.64M	-193.17M	-405.16M	266.08M

FSE Lifestyle Services Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0331, the sentiment is Positive. The current price of 5.72 is above the 20-day moving average (MA) of 5.67, above the 50-day MA of 5.60, and above the 200-day MA of 5.46, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.10 is Neutral, neither overbought nor oversold. The STOCH value of 81.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0331.

FSE Lifestyle Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0331	78 Outperform	HK$2.57B	5.37	49.10%	3.69%	3.11%	-2.34%
0830	70 Neutral	HK$3.32B	5.10	25.62%	3.73%	-6.51%	12.05%
Sector *	65 Neutral	$10.75B	15.72	5.20%	1.90%	3.09%	-27.42%
1662	61 Neutral	HK$945.00M	23.96	8.13%	―	46.88%	759.62%
1683	50 Neutral	HK$1.53B	106.67	-9.39%	―	-35.62%	-481.82%
1499	43 Neutral	HK$1.93B	―	-10.00%	―	37.43%	-3100.00%

FSE Lifestyle Services Limited Corporate Events

FSE Lifestyle Services Limited Establishes Nomination Committee to Enhance Governance

FSE Lifestyle Services Limited has outlined the terms of reference for its Nomination Committee, which was established by a board resolution in November 2015. The committee is composed of at least three members, primarily independent non-executive directors, and includes at least one director of a different gender. The chairman of the committee is appointed by the board and can be either the board chairman or an independent non-executive director. This structure aims to ensure diversity and independence in the company’s governance, potentially strengthening its decision-making processes and enhancing its corporate governance standards.