FSM Holdings Limited (1721) AI Stock Analysis

• Market Cap: HK$295.00M
• Dividend Yield: N/A
• Average Volume (3M): 53.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.53
• Revenue Growth: 10.03%
• EPS Growth: -34.10%
• Country: HK
• Employees: 229
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.02
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 51,500
• 30 Day Avg. Volume: 53,333
• PEG Ratio: 0.79
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 5.55
• P/FCF Ratio: -27.09
• 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: 51 Neutral
• Price Target: HK$0.32 ▲(69.47% Upside)

Overall score is held back primarily by weak financial performance—declining revenue, sustained losses, and negative operating/free cash flow. Technicals provide some support from recent price strength, but the very overbought RSI increases near-term risk. Valuation is also constrained by negative earnings (negative P/E) and no stated dividend yield.

Positive Factors

Diversified business model

A multi‑industry portfolio (technology, healthcare, property) provides durable revenue diversification and reduces reliance on any single cyclical market. Over 2–6 months this structural mix helps stabilize cash flows from rents, dividends and investment returns versus pure‑play peers.

Low leverage and strong cash buffer

Conservative leverage and a robust cash balance give the company financial flexibility to weather operating weakness and fund strategic investments without immediate refinancing. This balance sheet strength is a durable buffer against downturns and supports medium‑term stability.

Strategic partnerships and innovation focus

A stated emphasis on partnerships and innovation supports longer‑term growth through complementary capabilities, market access, and product development. Structural collaboration can deepen competitive advantages and create recurring revenue streams beyond one‑off investment gains.

Negative Factors

Declining revenue and sustained losses

Material revenue decline and multi‑year operating losses indicate impaired core earning power. Persistent negative profitability erodes reinvestment capacity, weakens competitive positioning, and makes recovery dependent on successful portfolio or operational restructuring rather than short‑term fixes.

Negative operating and free cash flow

Ongoing negative cash generation from operations undermines financial sustainability: it forces reliance on cash reserves or external funding, constrains capital expenditures and limits ability to support investments or distributions, creating structural financing risk.

Decreasing equity ratio

A falling equity ratio signals weaker equity backing for assets and potential erosion of balance sheet quality. Over months this trend can reduce borrowing capacity, increase perceived risk among counterparties, and limit strategic flexibility if not reversed by profitability or equity infusions.

FSM Holdings Limited Business Overview & Revenue Model

Company Description

FSM Holdings Limited, an investment holding company, operates as a sheet metal fabricator in Singapore, Malaysia, and internationally. It operates in two segments, Manufacturing Business and Online Business. The Manufacturing Business segment engages in sheet metal fabrication with a focus on precision engineering and precision machining service. This segment offers sheet metal products for contract manufacturers and brand owners for use in semiconductor manufacturing, machinery and machine tools manufacturing, and printing applications. The Online Business segment in involved in the development, distribution, and operation of online mobile games. The company also provides precision machining services to semi-finished products. FSM Holdings Limited was founded in 1992 and is based in Central, Hong Kong.

How the Company Makes Money

FSM Holdings generates revenue through a combination of investment returns from its diverse portfolio, which includes technology solutions, healthcare products, and real estate. The company's revenue model is primarily driven by capital appreciation and dividend income from its equity investments, as well as rental income from its property holdings. Additionally, FSM Holdings forms strategic partnerships with other organizations to enhance its service offerings and expand its market reach, contributing to its overall earnings. The company's focus on innovation and sustainable practices also helps in attracting investments and partnerships, further solidifying its revenue streams.

FSM Holdings Limited Financial Statement Overview

Summary

FSM Holdings Limited faces significant financial challenges, with declining revenues and profitability impacting its income statement. The balance sheet shows moderate stability with low leverage, but the declining equity ratio is a concern. Cash flow issues persist, with negative operating and free cash flows, although the company maintains a strong cash position.

Income Statement

FSM Holdings Limited has experienced declining revenue and profitability over recent years. The revenue decreased from 23.3M in 2022 to 14.9M in 2024, indicating a negative growth trend. The gross profit margin has also decreased, and the company has reported negative EBIT and net income for the past three years, highlighting ongoing operational challenges.

Balance Sheet

The company's balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is relatively low, indicating conservative leverage. However, the equity ratio has been decreasing, suggesting a decline in asset financing through equity. The company maintains a strong cash position, which provides some buffer against financial uncertainties.

Cash Flow

FSM Holdings Limited's cash flow situation is concerning, with negative operating cash flow and free cash flow in recent years. The free cash flow has been negative, reflecting challenges in generating cash from operations. However, the company has managed to maintain a positive cash balance, which could support short-term liquidity needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.81M	14.88M	16.07M	23.30M	16.08M	10.34M
Gross Profit	6.76M	5.97M	5.94M	10.71M	4.98M	1.44M
EBITDA	-2.31M	-2.93M	-1.54M	5.22M	-202.00K	-558.00K
Net Income	-6.97M	-3.41M	-4.88M	2.06M	-3.14M	-2.60M
Balance Sheet
Total Assets	48.22M	51.89M	55.19M	43.85M	40.20M	41.71M
Cash, Cash Equivalents and Short-Term Investments	32.90M	36.35M	38.98M	23.48M	20.99M	22.99M
Total Debt	14.62M	15.57M	14.46M	1.04M	1.35M	1.69M
Total Liabilities	20.35M	21.73M	21.07M	9.33M	7.52M	6.01M
Stockholders Equity	27.87M	30.16M	34.11M	34.52M	32.68M	35.69M
Cash Flow
Free Cash Flow	-5.96M	-3.05M	-1.51M	3.05M	-1.65M	240.00K
Operating Cash Flow	-5.78M	-2.77M	-1.50M	3.86M	-1.16M	554.00K
Investing Cash Flow	517.00K	672.00K	11.75M	-4.43M	5.36M	-597.00K
Financing Cash Flow	-660.00K	-674.00K	16.15M	-770.00K	-1.14M	-930.00K

FSM Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1721, the sentiment is Positive. The current price of 0.19 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.20, and below the 200-day MA of 0.40, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 80.05 is Negative, neither overbought nor oversold. The STOCH value of 48.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1721.

FSM Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1050	68 Neutral	HK$5.05B	24.70	19.09%	1.81%	10.34%	3.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0838	63 Neutral	HK$1.54B	6.16	8.13%	5.09%	0.51%	3.74%
0929	54 Neutral	HK$820.76M	78.79	0.57%	―	1.48%	12.50%
0255	53 Neutral	HK$900.12M	133.96	0.40%	14.77%	-4.52%	―
1721	51 Neutral	HK$295.00M	-7.21	-22.57%	―	10.03%	-34.10%
0822	50 Neutral	HK$335.16M	-6.63	-4.46%	―	10.91%	11.01%

FSM Holdings Limited Corporate Events

FSM Holdings Announces Board Changes with New Independent Director

FSM Holdings Limited has announced changes in its board composition, with the resignation of Ms. Leung Tze Ying Gwen as an independent non-executive director and the appointment of Ms. Wu Guang Yuan to the same position. Ms. Wu, a lawyer with 22 years of experience, will also serve as the chairman of the Audit Committee and a member of both the Nomination and Remuneration Committees. This transition is expected to bring a fresh perspective to the company’s governance, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (HK:1721) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FSM Holdings Limited stock, see the HK:1721 Stock Forecast page.

FSM Holdings Limited Announces Board Composition and Roles

FSM Holdings Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the company. The board includes executive director Wong Yet Lian, who serves as the Chief Executive Officer, and three independent non-executive directors: Wu Guang Yuan, Wong Po Keung, and Lau Chun Ho Edward. The announcement details the membership and chairmanship of the board’s three committees: Audit, Remuneration, and Nomination. This update provides clarity on the leadership structure and governance of FSM Holdings, which is crucial for stakeholders and investors in understanding the company’s management and oversight.

The most recent analyst rating on (HK:1721) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FSM Holdings Limited stock, see the HK:1721 Stock Forecast page.

FSM Holdings Limited Announces Auditor Resignation Amid Sanctions Conflict

FSM Holdings Limited announced the resignation of PricewaterhouseCoopers (PwC) as its auditor, effective from November 7, 2025. The resignation was due to a conflict arising from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designating Mr. Li Thet, a former executive director and controlling shareholder, under sanctions related to alleged involvement with a criminal organization. The company plans to promptly appoint a new auditor to fill the vacancy.

The most recent analyst rating on (HK:1721) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FSM Holdings Limited stock, see the HK:1721 Stock Forecast page.

FSM Holdings Limited Faces U.S. Sanctions Due to Ownership Structure

FSM Holdings Limited announced that due to the indirect ownership by Mr. Li, who holds approximately 60.23% of the company’s shares, it is subject to U.S. sanctions as outlined by OFAC. Despite this, the company does not expect any material adverse impact on its operations, as it primarily operates outside the U.S. and is not directly involved in the activities leading to the sanctions. The company is seeking legal advice to understand the full implications and advises shareholders and potential investors to exercise caution.

The most recent analyst rating on (HK:1721) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FSM Holdings Limited stock, see the HK:1721 Stock Forecast page.

FSM Holdings Limited Announces Board Composition and Roles

FSM Holdings Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the company. The board consists of one executive director, Wong Yet Lian, who serves as the Chief Executive Officer, and three independent non-executive directors: Leung Tze Ying Gwen, Wong Po Keung, and Lau Chun Ho Edward. The announcement also details the membership of the board members in various committees, highlighting the leadership roles of the independent directors in the audit, remuneration, and nomination committees. This update reflects the company’s governance structure and may impact its strategic direction and stakeholder engagement.

The most recent analyst rating on (HK:1721) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FSM Holdings Limited stock, see the HK:1721 Stock Forecast page.

FSM Holdings Executive Director Resigns Amid Sanctions

FSM Holdings Limited announced the resignation of Mr. Li Thet, an executive director, following his designation under U.S. sanctions for alleged involvement with a criminal organization. The company clarified that it is not involved in any illegal activities and that its operations remain unaffected by the sanctions. The resignation has led to non-compliance with certain listing rules, and FSM Holdings is actively seeking a replacement to meet regulatory requirements.

The most recent analyst rating on (HK:1721) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FSM Holdings Limited stock, see the HK:1721 Stock Forecast page.