FSE Lifestyle Services Limited (0331) AI Stock Analysis

• Market Cap: HK$2.56B
• Dividend Yield: 6.91%
• Average Volume (3M): 100.62K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.16
• Revenue Growth: -3.41%
• EPS Growth: -9.72%
• Country: HK
• Employees: 16,115
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.46
• Shares Outstanding: 450,000,000
• 10 Day Avg. Volume: 151,903
• 30 Day Avg. Volume: 100,619
• PEG Ratio: -0.63
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 0.00
• 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: 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for the company's services and effective market penetration, supporting long-term business sustainability.

Financial Stability

A low debt-to-equity ratio suggests prudent financial management, reducing financial risk and enhancing the company's ability to withstand economic fluctuations.

Corporate Governance

Improved corporate governance through a diverse and independent nomination committee can lead to better decision-making and long-term strategic planning.

Negative Factors

Cash Flow Challenges

Declining operating cash flow could impact the company's ability to fund operations and investments, potentially straining financial resources over time.

Earnings Growth

Negative EPS growth suggests challenges in maintaining profitability, which could affect investor confidence and the company's ability to reinvest in growth.

Cash Flow Growth Rate

A declining growth rate in free cash flow may limit the company's capacity to expand or invest in new opportunities, affecting future growth potential.

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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.16B	8.16B	8.45B	7.77B	6.97B	6.45B
Gross Profit	1.06B	1.06B	1.06B	1.05B	988.20M	1.13B
EBITDA	555.59M	555.59M	684.89M	708.26M	653.89M	726.17M
Net Income	453.21M	453.21M	501.10M	522.90M	502.94M	586.91M
Balance Sheet
Total Assets	4.37B	4.37B	3.95B	3.99B	3.60B	3.05B
Cash, Cash Equivalents and Short-Term Investments	743.86M	743.86M	601.29M	751.90M	767.04M	549.89M
Total Debt	409.95M	409.95M	276.60M	355.99M	504.07M	426.69M
Total Liabilities	3.11B	3.11B	2.96B	3.29B	3.16B	2.95B
Stockholders Equity	1.26B	1.26B	988.54M	699.15M	413.45M	77.51M
Cash Flow
Free Cash Flow	17.23M	0.00	115.17M	409.35M	403.28M	523.99M
Operating Cash Flow	23.76M	0.00	146.00M	448.20M	418.18M	542.73M
Investing Cash Flow	-62.33M	0.00	-1.74M	-58.55M	-13.98M	-486.89M
Financing Cash Flow	45.66M	0.00	-301.06M	-399.64M	-193.17M	-405.16M

FSE Lifestyle Services Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.67
• 50DMA: Negative
• 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 Neutral. The current price of 5.67 is below the 20-day moving average (MA) of 5.69, below the 50-day MA of 5.70, and above the 200-day MA of 5.60, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$2.56B	5.76	40.30%	6.91%	-3.41%	-9.72%
0830	65 Neutral	HK$2.71B	5.57	16.54%	6.55%	-22.53%	-30.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1662	60 Neutral	HK$767.35M	15.80	8.67%	―	-16.13%	5.48%
1499	48 Neutral	HK$988.17M	-83.64	-7.49%	―	-16.73%	65.63%
1683	41 Neutral	HK$513.22M	-9.39	-8.55%	―	-37.55%	-1727.78%

FSE Lifestyle Services Limited Corporate Events

FSE Lifestyle Services Sets Out Updated Board and Committee Structure

FSE Lifestyle Services Limited has set out an updated list of its board of directors, confirming the composition of non-executive, executive, and independent non-executive directors, including Dr. Cheng Kar Shun, Henry, and Mr. Doo Wai Hoi, William as chairmen in non-executive and executive capacities respectively. The company also detailed the latest membership of its key board committees—Audit, Remuneration, Nomination, Executive, and ESG—highlighting which directors chair or sit on each committee, thereby clarifying governance responsibilities and reinforcing its corporate oversight and sustainability focus for investors and other stakeholders as of 1 January 2026.

FSE Lifestyle Services Announces Retirement of Non-Executive Director and Extension of Consultancy Role

FSE Lifestyle Services Limited has announced that non-executive director Mr. Poon Lock Kee, Rocky will resign from the board with effect from 1 January 2026 due to retirement, with the company noting there is no disagreement with the board and nothing requiring shareholders’ attention. Following his resignation, Mr. Poon will continue to serve as a consultant to Young’s Engineering Company Limited under an extended consultancy agreement from 1 January to 31 March 2026 on unchanged terms, a transaction classified as a continuing connected transaction but exempt from reporting, announcement, and independent shareholders’ approval requirements due to its small size and normal commercial terms.

FSE Lifestyle Services Secures Shareholder Approval for Key Resolutions at AGM

FSE Lifestyle Services Limited announced the successful passage of all proposed resolutions at its Annual General Meeting held on November 21, 2025. Key resolutions included the approval of financial statements, the declaration of a final dividend, the re-election and appointment of directors, and the adoption of a new share option scheme. The approval of these resolutions reflects shareholder confidence in the company’s strategic direction and governance, potentially strengthening its market position and stakeholder relations.

FSE Lifestyle Services Limited Announces Board Composition Post-AGM

FSE Lifestyle Services Limited has announced the composition of its board of directors following its annual general meeting. The board includes a mix of non-executive, executive, and independent non-executive directors, highlighting the company’s governance structure. This announcement reflects the company’s commitment to maintaining a diverse and experienced leadership team, which could impact its strategic direction and operational efficiency.

FSE Lifestyle Services Limited Announces Annual General Meeting

FSE Lifestyle Services Limited has announced its upcoming annual general meeting scheduled for November 21, 2025, in Hong Kong. Key agenda items include reviewing the company’s financial statements, declaring a final dividend, re-electing directors, appointing a new director, and reappointing PricewaterhouseCoopers as the auditor. The meeting will also address resolutions to authorize the board to manage share allotments and other related financial activities, potentially impacting the company’s operational flexibility and shareholder value.