First Service Holding Limited (2107) AI Stock Analysis

• Market Cap: HK$250.89M
• Dividend Yield: 15.45%
• Average Volume (3M): 280.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 6.30%
• EPS Growth: -128.34%
• Country: HK
• Employees: 3,827
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.03
• Shares Outstanding: 1,264,000,000
• 10 Day Avg. Volume: 155,500
• 30 Day Avg. Volume: 280,750
• PEG Ratio: 0.16
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 22.75
• 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$0.22 ▲(1.82% Upside)

The score is held back primarily by the sharp profitability deterioration (2024 loss and margin compression) and weak technical momentum (below major moving averages with bearish indicators). Offsetting factors include an exceptionally low-leverage balance sheet and a very high dividend yield, though losses (negative P/E) temper the valuation benefit.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Revenue Growth

Consistent revenue growth indicates a solid market position and demand for services, supporting long-term business expansion and resilience against market downturns.

New Service Agreements

Approval of new service agreements enhances operational capabilities and strengthens market position, ensuring continuity and potential growth in service offerings.

Negative Factors

Profitability Deterioration

Deteriorating profitability undermines financial health and limits reinvestment capabilities, posing risks to long-term sustainability and shareholder value.

Cash Flow Decline

A decline in cash flow generation can strain liquidity and reduce the company's ability to fund operations and growth initiatives, impacting long-term viability.

Margin Compression

Margin compression reduces profitability and limits the company's ability to absorb cost increases or invest in competitive advantages, threatening long-term competitiveness.

First Service Holding Limited Business Overview & Revenue Model

Company Description

First Service Holding Limited provides property management services and green living solutions in the People's Republic of China and internationally. It operates in two segments, First Property Management and First Living. The company offers property management services comprising cleaning, security, gardening, and repair and maintenance to property developers, property owners, and residents. Its portfolio of properties under management includes residential properties; and non-residential properties comprising office buildings, government facilities, hotels, and shopping centers. The company also provides green living solutions consisting of energy operation, green technology consulting, and systems installation services, as well as sells AIRDINO systems. In addition, it offers value-added services to non-property owners, property owners, and residents. The company's value-added services comprise sales assistance, and preliminary planning and design consultancy services, including on-site design consulting, construction stage inspection, sales assistance consulting, and pre-delivery inspection to non-property owners; and community value-added services consisting of parking space management, communal area leasing, and home living services. First Service Holding Limited was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

First Service Holding Limited generates revenue through a diversified business model that includes three key revenue streams: property management services, community value-added services, and professional services. Property management services constitute the core revenue stream, where the company charges fees for managing residential and commercial properties, ensuring maintenance, security, and other essential services. Community value-added services include offerings such as home improvement, lifestyle services, and utility management, which are provided to enhance the living experience of residents and generate additional income. Professional services encompass consultancy and advisory services related to property development and management. The company's revenue model is further supported by strategic partnerships with property developers and other stakeholders in the real estate industry, contributing to its growth and profitability.

First Service Holding Limited Financial Statement Overview

Summary

First Service Holding Limited exhibits a mixed financial performance. Despite revenue growth of 9.57%, profitability is under stress with negative net income and declining margins. The balance sheet remains strong with low leverage and a stable equity ratio. However, cash flow issues are prominent due to zero operating and free cash flow, posing risks to financial flexibility.

Income Statement

The company experienced a significant decline in EBIT and EBITDA margins, resulting in negative values for the most recent year. Despite this, gross profit margin remained relatively stable at about 23%. The net profit margin turned negative due to a substantial drop in net income. Revenue growth was modest at 9.57% from the previous year, indicating challenges in maintaining profitability.

Balance Sheet

The company maintains a solid equity base with a low debt-to-equity ratio due to minimal total debt. The equity ratio is robust at approximately 36.8%, reflecting strong financial stability. Return on equity decreased significantly, indicating reduced profitability.

Cash Flow

The company reported zero operating and free cash flow in the most recent year, highlighting cash flow management issues. Previous periods saw positive free cash flow, but the lack of growth indicates potential liquidity concerns. The cash flow to net income ratios were not calculable for the current year due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.33B	1.21B	1.12B	1.12B	771.80M
Gross Profit	301.06M	309.68M	304.66M	260.89M	335.36M	267.34M
EBITDA	-32.93M	-23.41M	98.21M	72.41M	47.44M	125.40M
Net Income	-21.12M	-12.07M	57.13M	41.34M	35.47M	92.58M
Balance Sheet
Total Assets	1.69B	1.68B	1.47B	1.37B	1.36B	1.21B
Cash, Cash Equivalents and Short-Term Investments	709.48M	738.08M	565.90M	538.50M	628.31M	842.55M
Total Debt	2.75M	2.65M	0.00	0.00	20.51M	0.00
Total Liabilities	1.02B	1.01B	758.07M	694.90M	684.35M	537.67M
Stockholders Equity	606.00M	619.21M	657.49M	629.28M	637.48M	653.75M
Cash Flow
Free Cash Flow	-18.59M	10.28M	82.97M	-21.47M	-7.33M	80.86M
Operating Cash Flow	-9.92M	25.50M	93.39M	-12.41M	1.24M	84.64M
Investing Cash Flow	106.31M	-77.65M	50.09M	-17.55M	-192.10M	134.42M
Financing Cash Flow	-22.94M	-21.61M	-35.27M	-84.77M	-39.65M	256.73M

First Service Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2107, the sentiment is Negative. The current price of 0.22 is above the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.24, and below the 200-day MA of 0.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 20.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2107.

First Service Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2165	74 Outperform	HK$522.80M	6.90	11.46%	―	5.01%	-31.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3662	63 Neutral	HK$305.02M	7.16	3.28%	6.60%	-14.43%	-77.55%
1663	52 Neutral	HK$157.70M	-670.00	-0.02%	―	-68.21%	-100.40%
2107	51 Neutral	HK$250.89M	-11.78	-4.06%	15.45%	6.30%	-128.34%
9608	45 Neutral	HK$230.40M	27.39	2.06%	―	0.88%	-25.81%

First Service Holding Limited Corporate Events

First Service Holding Wins Full Shareholder Backing for New Connected Service Agreements

First Service Holding Limited announced that shareholders at its extraordinary general meeting on 30 December 2025 approved two sets of continuing connected transactions by poll vote, each receiving 100% support from voting shareholders. The resolutions ratify a new energy operation services framework agreement with First MOMA Human Environment Technology (Beijing) Co., Ltd. and a new elevator system maintenance services framework agreement with Fujian Yongfeng Jiye Mechanical and Electrical Installation Engineering Co., Ltd., and authorize the board to implement these arrangements. Certain major shareholders with material interests abstained from voting on the respective resolutions, ensuring compliance with connected transaction rules, while the strong backing from independent shareholders strengthens the company’s governance standing and supports the continuation of key service partnerships underpinning its operations.

First Service Holding Limited Announces EGM to Approve Key Service Agreements

First Service Holding Limited has announced an Extraordinary General Meeting (EGM) scheduled for December 30, 2025, to discuss and approve two significant continuing connected transactions. These transactions involve new agreements for energy operation services and elevator system maintenance services with proposed annual caps. The approval of these resolutions is expected to enhance the company’s operational capabilities and strengthen its market position in the service industry.

First Service Holding Limited Enters New Framework Agreements for Continued Service Operations

First Service Holding Limited has announced its entry into four new framework agreements, which will continue the company’s ongoing connected transactions beyond the expiration of existing agreements in December 2025. These agreements, which include services in energy operation, property management, and elevator maintenance, are subject to specific reporting and approval requirements under Hong Kong’s Listing Rules, indicating a strategic continuation of the company’s service offerings and potential impact on its market positioning.