FSE Lifestyle Services Limited (0331) AI Stock Analysis

• Market Cap: HK$2.54B
• Dividend Yield: 3.73%
• Average Volume (3M): 75.56K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.22
• Revenue Growth: 3.11%
• EPS Growth: -2.34%
• Country: HK
• Employees: 16,115
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 0.53
• Shares Outstanding: 450,000,000
• 10 Day Avg. Volume: 67,344
• 30 Day Avg. Volume: 75,565
• 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 Ltd., an investment holding company, provides property and facility management services, city essential services, and electrical and mechanical engineering (E&M) services. Its Property & Facility Management services segment provides property management, facility management, and agency services. The company's City Essential Services segment provides technical support and maintenance, environmental solutions, assets protection and security services, concierge and event servicing, insurance solutions, cleaning, disinfection, and pest control services. Its E&M Services segment provides design and installation services, air-conditioning services, electrical services, fire services, plumbing and drainage services, and extra low-voltage services. The company is also involved in the securities investment business; trading of ceramic tiles and building materials and provision of maintenance and fitting out services; and provision of testing and calibration services, reinsurance brokerage, solutions and support services to event activities, and landscaping services. The company was formerly known as FSE Engineering Holdings Limited and changed its name to FSE Services Group Limited in April 2018. FSE Services Group Limited was incorporated in 2015 and is headquartered in Kowloon Bay, Hong Kong. FSE Services Group Limited is a subsidiary of FSE Holdings Limited.

How the Company Makes Money

FSE Lifestyle Services Limited generates revenue through multiple streams, primarily focusing on facility and property management services. The company earns income from contracts with residential and commercial property owners for managing and maintaining their properties. These services may include cleaning, security, maintenance, and other operational management tasks. Additionally, FSE Lifestyle Services Limited collaborates with various partners to enhance its service offerings, which can lead to additional revenue opportunities. The company's success is significantly influenced by its ability to maintain long-term contracts and relationships with key clients, ensuring a steady and reliable income flow.

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
	EBIT
568.00M	590.65M	580.89M	548.19M	691.44M	496.55M
	EBITDA
624.90M	684.89M	708.26M	653.89M	726.17M	579.46M
	Net Income Common Stockholders
487.29M	501.10M	522.90M	502.94M	586.91M	412.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
622.36M	601.29M	751.90M	767.04M	549.89M	894.82M
	Total Assets
4.06B	3.95B	3.99B	3.60B	3.05B	3.74B
	Total Debt
459.23M	276.60M	355.99M	504.07M	426.69M	526.54M
	Net Debt
-163.13M	-282.41M	-395.91M	-262.96M	-123.20M	-368.27M
	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: 5.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.65 is above the 20-day moving average (MA) of 5.57, above the 50-day MA of 5.52, and above the 200-day MA of 5.41, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.38 is Neutral, neither overbought nor oversold. The STOCH value of 67.05 is Neutral, 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$2.54B	5.31	49.10%	3.73%	3.11%	-2.34%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
PVLTF		$353.16M	24.07	1.64%	1.06%	―	―
SNLAF		$9.67B	19.36	2.17%	0.24%	―	―
SNPMF		$93.29B	9.28		26.17%	―	―
0136	52 Neutral	HK$31.51B	27.01	-1.40%	―	0.52%	-124.50%
0339	17 Underperform	HK$36.29M	―	-245.26%	―	64.26%	6.67%

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.

FSE Lifestyle Services Limited Announces Board Composition and Roles

FSE Lifestyle Services Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement outlines the structure of the board, including the appointment of non-executive, executive, and independent non-executive directors, as well as their participation in various board committees. This information is crucial for stakeholders as it provides insight into the governance and leadership structure of the company, which can impact its strategic direction and operational effectiveness.