Frontier Services Group (0500) AI Stock Analysis

• Market Cap: HK$189.87M
• Dividend Yield: N/A
• Average Volume (3M): 800.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -10.36%
• EPS Growth: -23450.00%
• Country: HK
• Employees: 2,176
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): >-0.01
• Shares Outstanding: 2,403,386,000
• 10 Day Avg. Volume: 798,051
• 30 Day Avg. Volume: 800,425
• PEG Ratio: 0.01
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 19.67
• 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: 44 Neutral
• Price Target: HK$0.07 ▼(-8.75% Downside)

The overall stock score of 44 reflects significant financial challenges, particularly in profitability and cash flow, which are the most impactful factors. Technical analysis shows a bearish trend, and valuation metrics are poor due to negative earnings and lack of dividends. These factors collectively result in a low stock score.

Positive Factors

Business Model Strength

Frontier Services Group's focus on logistics and security in emerging markets positions it to leverage growth opportunities in high-demand sectors such as oil, gas, and mining, providing a durable competitive advantage.

Revenue Streams

Diverse revenue streams from logistics and security services enhance financial stability, allowing the company to capitalize on its expertise and command premium pricing in challenging environments.

Partnerships

Strategic partnerships with large entities bolster Frontier Services Group's market position and client base, ensuring stable recurring revenue and reinforcing its capability to deliver integrated services.

Negative Factors

Profitability Challenges

Ongoing net losses and negative profit margins highlight operational inefficiencies and high costs, posing a threat to long-term profitability and shareholder value.

Cash Flow Issues

Negative operating cash flow indicates operational difficulties, limiting the company's ability to reinvest in growth and manage financial obligations effectively.

Revenue Decline

Significant revenue decline reflects market challenges and potential loss of competitive edge, impacting future growth prospects and financial health.

Frontier Services Group Business Overview & Revenue Model

Company Description

Frontier Services Group Limited (0500) is a Hong Kong-based logistics and security company that operates primarily in the emerging markets of Africa and Asia. The company provides a range of services including logistics support, security services, and risk management solutions, catering to clients in sectors such as oil and gas, mining, and infrastructure development. Frontier Services Group aims to facilitate the safe and efficient operation of businesses in challenging environments, leveraging its expertise in local markets and its extensive network of resources.

How the Company Makes Money

Frontier Services Group generates revenue through multiple streams, primarily focusing on its logistics and security services. The company charges clients for logistics support, which includes transportation, supply chain management, and warehousing services tailored to industries like oil, gas, and mining. Additionally, it earns revenue from security services, providing risk assessment, on-the-ground protection, and training for personnel operating in high-risk areas. Significant partnerships with multinational corporations and government entities enhance their capabilities and client base, contributing to stable recurring revenue. The company's ability to offer integrated services in challenging regions allows it to command premium pricing, reinforcing its earnings potential.

Frontier Services Group Financial Statement Overview

Summary

Frontier Services Group faces significant financial challenges with profitability and cash flow issues. The income statement shows consistent net losses, and cash flow analysis reveals substantial weaknesses. Although the balance sheet reflects moderate leverage, the company struggles with generating positive net income and consistent cash flows.

Income Statement

Frontier Services Group's income statement shows a challenging financial performance with consistent net losses over the years. The gross profit margin improved slightly in the most recent year but remains low, and the net profit margin is negative, indicating the company is not currently profitable. The revenue growth shows volatility, declining significantly in recent years. The EBIT and EBITDA margins are also weak, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet indicates a moderate financial position with a reasonable debt-to-equity ratio. The company maintains a relatively low level of debt compared to equity, which is a positive sign. However, the equity ratio is declining, suggesting increasing liabilities relative to assets. Return on equity is negative due to net losses, impacting shareholder value negatively.

Cash Flow

Cash flow analysis reveals substantial weaknesses, particularly in operating cash flow, which has been negative in several periods, indicating operational difficulties. Although free cash flow improved in the latest period, growth rates are inconsistent. The free cash flow to net income ratio is not meaningful due to negative net income, reflecting ongoing cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	688.33M	753.55M	812.92M	964.25M	756.12M	605.25M
Gross Profit	79.47M	96.63M	130.09M	48.06M	11.59M	-94.14M
EBITDA	-28.29M	2.97M	113.44M	61.91M	-82.84M	-163.87M
Net Income	-112.16M	-103.88M	51.17M	-28.97M	-159.70M	-228.03M
Balance Sheet
Total Assets	874.99M	911.02M	1.06B	1.09B	1.17B	939.92M
Cash, Cash Equivalents and Short-Term Investments	133.80M	163.86M	198.11M	190.65M	267.43M	318.68M
Total Debt	185.08M	148.50M	218.15M	219.61M	259.51M	124.46M
Total Liabilities	481.40M	513.77M	553.49M	620.87M	668.32M	313.23M
Stockholders Equity	263.91M	273.65M	382.92M	351.74M	384.64M	508.67M
Cash Flow
Free Cash Flow	19.45M	17.23M	23.16M	-37.57M	-69.82M	-179.63M
Operating Cash Flow	39.89M	74.02M	51.22M	-23.35M	-35.52M	-164.83M
Investing Cash Flow	-18.00M	-9.29M	-22.55M	2.30M	-194.74M	39.16M
Financing Cash Flow	-98.15M	-93.63M	-13.92M	-50.04M	160.80M	81.80M

Frontier Services Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0500, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 58.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0500.

Frontier Services Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3399	65 Neutral	HK$1.31B	5.06	11.51%	6.23%	-1.65%	9.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1442	60 Neutral	HK$660.48M	13.97	7.59%	―	13.85%	37.13%
2130	52 Neutral	HK$985.60M	33.71	5.39%	0.60%	29.11%	-49.03%
6123	45 Neutral	HK$451.43M	-7.71	-4.97%	2.25%	-35.13%	-11.52%
0500	44 Neutral	HK$189.87M	-1.76	-35.39%	―	-10.36%	-23450.00%
8292	40 Underperform	HK$442.11M	-67.80	-7.88%	―	9.79%	89.05%

Frontier Services Group Corporate Events

Frontier Services Group Clarifies Executive Compensation Disclosure

Frontier Services Group Limited has issued a supplemental announcement regarding the disclosure of emoluments for Dr. Hu Ping, who served as Acting Chief Executive Officer and Chief Operating Officer during 2021 and 2022. The disclosure aligns with the Main Board Listing Rules and provides detailed compensation figures for Dr. Hu, which were already included in the company’s annual reports. This announcement ensures transparency in the company’s executive compensation practices, maintaining compliance with regulatory requirements and reinforcing its commitment to clear communication with stakeholders.

The most recent analyst rating on (HK:0500) stock is a Hold with a HK$0.07 price target. To see the full list of analyst forecasts on Frontier Services Group stock, see the HK:0500 Stock Forecast page.