FSM Holdings Limited (1721) AI Stock Analysis

• Market Cap: HK$540.00M
• Dividend Yield: N/A
• Average Volume (3M): 26.00K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.34
• 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: 62,000
• 30 Day Avg. Volume: 26,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• 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

• Rating: 56 Neutral
• Price Target: HK$0.50 ▼(-7.41% Downside)

The overall stock score of 56 is primarily influenced by significant financial challenges including declining revenues and profitability, which weigh heavily on the score. While technical analysis shows some bullish momentum, the high RSI indicates potential overbought conditions. Valuation remains a concern due to negative earnings and the lack of a dividend yield.

FSM Holdings Limited Business Overview & Revenue Model

Company Description

FSM Holdings Limited (1721) is a company engaged primarily in the manufacturing and sale of plastic pipes and pipe fittings. It operates within the industrial sector, focusing on providing high-quality and durable products for various applications, including water supply, drainage, and other infrastructure projects. The company serves a diverse client base, comprising residential, commercial, and governmental entities.

How the Company Makes Money

FSM Holdings Limited generates revenue through the production and sale of its plastic piping systems. The company leverages its manufacturing capabilities to produce a range of plastic pipes and fittings, which are then sold to customers across different sectors. Key revenue streams include sales to construction companies, government infrastructure projects, and retail sales to individual customers or smaller enterprises. Additionally, FSM Holdings may engage in partnerships or joint ventures to expand its market reach and enhance its product offerings, contributing to its overall revenue growth.

FSM Holdings Limited Financial Statement Overview

Summary

FSM Holdings Limited is facing significant financial challenges, with declining revenues impacting profitability and cash flow generation. The company benefits from a strong equity base and manageable debt levels, but needs to address operational inefficiencies to improve cash flow and return to 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
EBITDA	-2.93M	-1.54M	5.22M	-202.00K	-558.00K
Net Income	-3.41M	-4.88M	2.06M	-3.14M	-2.60M
Balance Sheet
Total Assets	51.89M	55.19M	43.85M	40.20M	41.71M
Cash, Cash Equivalents and Short-Term Investments	36.35M	38.98M	23.48M	20.99M	10.60M
Total Debt	15.57M	14.46M	1.04M	1.35M	1.92M
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	-3.05M	-1.51M	3.05M	-1.65M	240.00K
Operating Cash Flow	-2.77M	-1.50M	3.86M	-1.16M	554.00K
Investing Cash Flow	672.00K	11.75M	-4.43M	5.36M	-597.00K
Financing Cash Flow	-674.00K	16.15M	-770.00K	-1.14M	-930.00K

FSM Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 0.54 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.44, and above the 200-day MA of 0.45, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 92.66 is Negative, neither overbought nor oversold. The STOCH value of 75.63 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	77 Outperform	HK$1.92B	9.39	19.74%	6.91%	10.81%	20.38%
0838	73 Outperform	HK$1.32B	5.43	7.82%	5.36%	1.85%	2.72%
Sector *	64 Neutral	$10.65B	16.19	5.48%	2.12%	2.75%	-22.21%
0255	62 Neutral	HK$960.15M	―	-0.79%	5.97%	7.17%	81.17%
1721	56 Neutral	HK$540.00M	―	-10.69%	―	-7.29%	29.68%
0929	54 Neutral	HK$441.95M	42.08	0.58%	―	12.38%	87.04%
0822	47 Neutral	HK$299.41M	―	-5.00%	―	15.54%	-115.72%

FSM Holdings Limited Corporate Events

FSM Holdings Limited Announces Nomination Committee Terms

FSM Holdings Limited has announced the terms of reference for its Nomination Committee, which will consist of at least three members, primarily independent non-executive directors. The committee is tasked with formulating and implementing a nomination policy focused on board diversity, reviewing the board’s structure, and assessing the independence of directors. This move is expected to enhance the company’s governance framework and ensure a diverse and skilled board, aligning with corporate strategy and stakeholder interests.

FSM Holdings Limited Successfully Passes All AGM Resolutions

FSM Holdings Limited announced that all resolutions proposed at its Annual General Meeting held on June 25, 2025, were passed unanimously by shareholders. The resolutions included the adoption of financial statements, re-election of directors, reappointment of auditors, and granting of mandates to the board for share issuance and repurchase. This successful AGM reflects strong shareholder support and positions the company for continued governance and operational stability.