FSM Holdings Limited (1721) AI Stock Analysis

• Market Cap: HK$445.00M
• Dividend Yield: N/A
• Average Volume (3M): 8.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.26
• Revenue Growth: -7.29%
• EPS Growth: 29.68%
• Country: HK
• Employees: 229
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.02
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 5,500
• 30 Day Avg. Volume: 8,666
• PEG Ratio: -0.14
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.33
• 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: 39 Underperform
• Price Target: ―

FSM Holdings Limited is facing significant financial and market challenges. Declining revenues and poor cash flow management weigh heavily on financial performance. Technical analysis reflects bearish sentiment, while a negative P/E ratio and lack of dividends further deter investment appeal.

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 Limited generates revenue primarily through the sale of its proprietary aluminum formwork systems. These systems are designed to be reusable, offering a sustainable and economical solution for construction projects, thus providing value to construction companies. Additionally, the company may derive income from offering related services such as installation support and technical consultancy. Significant partnerships with construction firms and ongoing projects can contribute to the company's earnings by ensuring a steady demand for their formwork solutions.

FSM Holdings Limited Financial Statement Overview

Summary

FSM Holdings Limited is experiencing financial difficulties, with declining revenues and profitability. While the company has a strong equity base and manageable debt levels, it is struggling with operational inefficiencies impacting cash flow and growth.

Income Statement

FSM Holdings Limited has shown a declining revenue trend from 2022 to 2024, with revenue dropping from 23.3 million in 2022 to 14.9 million in 2024. The gross profit margin decreased slightly in 2024, leading to a negative EBIT and EBITDA as well as a consistent net loss over the years. These factors indicate challenges in maintaining profitability amidst declining revenues.

Balance Sheet

The company maintains a favorable debt-to-equity ratio, with total debt decreasing over the years and a healthy equity base. However, the declining total assets and equity ratio suggest a need for improved asset management. The company’s strong cash position relative to its liabilities is a positive sign of financial stability.

Cash Flow

FSM Holdings has struggled with cash generation, recording negative free cash flow in recent periods. The absence of operating cash flow in 2024 and a consistent lack of free cash flow growth point to significant challenges in operational cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.88M	16.07M	23.30M	16.08M	10.34M
	Gross Profit
5.97M	5.94M	10.71M	4.98M	1.44M
	EBIT
-3.00M	-4.07M	3.10M	-2.84M	-2.79M
	EBITDA
-2.93M	-1.54M	5.22M	-202.00K	-558.00K
	Net Income Common Stockholders
-3.41M	-4.88M	2.06M	-3.14M	-2.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.35M	38.98M	23.48M	20.99M	10.60M
	Total Assets
51.89M	55.19M	43.85M	40.20M	41.71M
	Total Debt
15.57M	14.46M	1.04M	1.35M	1.92M
	Net Debt
-20.65M	-24.47M	-11.54M	-12.58M	-8.69M
	Total Liabilities
21.73M	21.07M	9.33M	7.52M	6.01M
	Stockholders Equity
30.16M	34.11M	34.52M	32.68M	35.69M
Cash Flow		Free Cash Flow
0.00	-1.51M	3.05M	-1.65M	240.00K
	Operating Cash Flow
0.00	-1.50M	3.86M	-1.16M	554.00K
	Investing Cash Flow
0.00	11.75M	-4.43M	5.36M	-597.00K
	Financing Cash Flow
0.00	16.15M	-770.00K	-1.14M	-930.00K

FSM Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 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 0.44 is above the 20-day moving average (MA) of 0.42, above the 50-day MA of 0.42, and below the 200-day MA of 0.44, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 70.97 is Negative, neither overbought nor oversold. The STOCH value of 48.89 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
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
1721	39 Underperform	HK$445.00M	―	-10.69%	―	-7.29%	29.68%
MI8		€37.05M	―	-5.00%	―	―	―
GZT		€135.81M	4.16	7.82%	7.21%	―	―
1050	64 Neutral	HK$1.64B	8.28	20.43%	12.35%	29.30%	-1.21%
0255	61 Neutral	HK$846.45M	―	-0.79%	14.92%	7.17%	81.17%
0929	54 Neutral	HK$431.42M	40.59	0.58%	―	12.38%	87.04%

FSM Holdings Limited Corporate Events

FSM Holdings Appoints New Nomination Committee Member

FSM Holdings Limited has announced the appointment of Ms. Leung Tze Ying Gwen, an independent non-executive Director, as a member of the nomination committee, effective from March 25, 2025. This strategic appointment is expected to enhance the governance structure of FSM Holdings Limited, potentially impacting its operational efficiency and stakeholder relations positively.

FSM Holdings Limited Announces Board Composition and Roles

FSM Holdings Limited has announced the composition of its Board of Directors and their respective roles within the company. The Board includes both executive and independent non-executive directors, with specific members assigned to the Audit, Remuneration, and Nomination Committees. This announcement provides clarity on the governance structure of FSM Holdings, potentially impacting its strategic direction and operational oversight.

FSM Holdings Limited Reports 2024 Financial Results

FSM Holdings Limited announced its audited consolidated results for the financial year ended December 31, 2024, reporting a decrease in revenue from S$16,071,000 in 2023 to S$14,876,000 in 2024. Despite a reduction in operating loss from S$4,069,000 to S$3,000,000, the company still faced a net loss of S$3,407,000, attributed to increased selling and distribution expenses and research and development costs.

FSM Holdings Limited Schedules Board Meeting to Review Annual Results

FSM Holdings Limited has announced that its Board of Directors will convene on March 25, 2025, to review and approve the company’s annual financial results for the year ending December 31, 2024. The meeting will also consider the declaration of a final dividend, which could impact shareholder returns and reflect the company’s financial health.