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FSM Holdings Limited (HK:1721)
:1721
Hong Kong Market
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FSM Holdings Limited (1721) AI Stock Analysis

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HK:1721

FSM Holdings Limited

(1721)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
HK$0.50
▲(13.64% Upside)
FSM Holdings Limited's overall stock score is primarily impacted by its financial performance, which is challenged by declining revenues and profitability. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. Valuation concerns are highlighted by a negative P/E ratio and lack of dividend yield, further weighing on the stock's attractiveness.

FSM Holdings Limited (1721) vs. iShares MSCI Hong Kong ETF (EWH)

FSM Holdings Limited Business Overview & Revenue Model

Company DescriptionFSM 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 MoneyFSM 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 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
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.81M14.88M16.07M23.30M16.08M10.34M
Gross Profit6.76M5.97M5.94M10.71M4.98M1.44M
EBITDA-2.31M-2.93M-1.54M5.22M-202.00K-558.00K
Net Income-6.97M-3.41M-4.88M2.06M-3.14M-2.60M
Balance Sheet
Total Assets48.22M51.89M55.19M43.85M40.20M41.71M
Cash, Cash Equivalents and Short-Term Investments32.90M36.35M38.98M23.48M20.99M22.99M
Total Debt14.62M15.57M14.46M1.04M1.35M1.92M
Total Liabilities20.35M21.73M21.07M9.33M7.52M6.01M
Stockholders Equity27.87M30.16M34.11M34.52M32.68M35.69M
Cash Flow
Free Cash Flow-5.96M-3.05M-1.51M3.05M-1.65M240.00K
Operating Cash Flow-5.78M-2.77M-1.50M3.86M-1.16M554.00K
Investing Cash Flow517.00K672.00K11.75M-4.43M5.36M-597.00K
Financing Cash Flow-660.00K-674.00K16.15M-770.00K-1.14M-930.00K

FSM Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.44
Price Trends
50DMA
0.52
Negative
100DMA
0.49
Negative
200DMA
0.47
Negative
Market Momentum
MACD
-0.03
Positive
RSI
11.20
Positive
STOCH
21.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1721, the sentiment is Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.52, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 11.20 is Positive, neither overbought nor oversold. The STOCH value of 21.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1721.

FSM Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$2.11B8.458.13%3.55%0.51%3.74%
64
Neutral
HK$4.67B22.8319.74%1.99%10.81%20.38%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
HK$1.17B175.470.40%14.21%-4.52%
59
Neutral
HK$852.33M81.820.57%1.48%12.50%
51
Neutral
€321.75M-4.46%10.91%11.01%
46
Neutral
HK$435.00M-22.57%10.03%-34.10%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1721
FSM Holdings Limited
0.36
-0.04
-10.00%
HK:0822
Ka Shui International Holdings Limited
0.35
0.10
40.24%
HK:0838
Eva Precision Industrial Holdings Limited
1.19
0.52
78.68%
HK:0255
Lung Kee (Bermuda) Holdings Limited
1.83
0.83
83.00%
HK:0929
IPE Group Limited
0.79
0.31
64.58%
HK:1050
Karrie International Holdings Limited
2.77
1.97
246.25%

FSM Holdings Limited Corporate Events

FSM Holdings Limited Faces U.S. Sanctions Due to Ownership Structure
Oct 23, 2025

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
Oct 22, 2025

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
Oct 21, 2025

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.

FSM Holdings Limited Reports Increased Revenue but Faces Net Loss in Interim Results
Aug 27, 2025

FSM Holdings Limited reported its unaudited interim results for the six months ending June 30, 2025, revealing a revenue increase to S$7,981,000 from S$7,043,000 in the same period in 2024. Despite the revenue growth, the company experienced a significant net loss of S$3,973,000, attributed to increased research and development expenses and net losses in other areas, impacting its financial performance and stakeholder confidence.

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 Schedules Board Meeting to Review Interim Results
Aug 15, 2025

FSM Holdings Limited has announced that a board meeting will take place on August 27, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend, highlighting potential financial decisions that could impact stakeholders.

FSM Holdings Issues Profit Warning Amid Increased Losses
Aug 15, 2025

FSM Holdings Limited has issued a profit warning, indicating a significant increase in losses for the six months ending June 30, 2025. The company expects a loss between S$3,800,000 and S$4,200,000, largely due to net foreign exchange losses stemming from the appreciation of the Singapore dollar against the US and Hong Kong dollars. This marks a substantial rise from the S$413,000 loss recorded in the same period in 2024. The interim results are still being finalized, and shareholders are advised to exercise caution.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025