First Service Holding Limited (2107) AI Stock Analysis

• Market Cap: HK$391.64M
• Dividend Yield: 10.31%
• Average Volume (3M): 138.17K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.55
• Revenue Growth: 7.48%
• EPS Growth: -118.08%
• Country: HK
• Employees: 3,827
• Sector: Real Estate
• Sector Strength: 72
• Industry: Real Estate - Services
• EPS (TTM): -0.04
• Shares Outstanding: 1,264,000,000
• 10 Day Avg. Volume: 174,250
• 30 Day Avg. Volume: 138,166
• PEG Ratio: 0.68
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.79
• 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: 57 Neutral
• Price Target: ―

First Service Holding Limited faces significant profitability challenges, with a negative net income impacting its financial health. The company's strong balance sheet and high dividend yield partially offset these concerns, but cash flow issues highlight potential liquidity risks. Technical indicators suggest moderate bullish momentum, although the negative P/E ratio raises valuation concerns.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.33B	1.21B	1.12B	1.12B	771.80M
	Gross Profit
309.68M	304.66M	260.89M	335.36M	267.34M
	EBIT
-32.02M	85.02M	54.65M	37.37M	120.89M
	EBITDA
-23.41M	98.21M	72.41M	47.44M	125.40M
	Net Income Common Stockholders
-12.07M	57.13M	41.34M	35.47M	92.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
752.41M	565.90M	503.69M	593.41M	820.76M
	Total Assets
1.68B	1.47B	1.37B	1.36B	1.21B
	Total Debt
2.65M	0.00	0.00	20.51M	0.00
	Net Debt
-436.37M	-509.83M	-396.07M	-475.32M	-731.67M
	Total Liabilities
1.01B	758.07M	694.90M	684.35M	537.67M
	Stockholders Equity
619.20M	657.49M	629.28M	637.48M	653.75M
Cash Flow		Free Cash Flow
0.00	82.97M	-21.47M	-7.33M	80.86M
	Operating Cash Flow
0.00	93.39M	-12.41M	1.24M	84.64M
	Investing Cash Flow
0.00	50.09M	-17.55M	-192.10M	134.42M
	Financing Cash Flow
0.00	-35.27M	-84.77M	-39.65M	256.73M

First Service Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.32 is below the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.31, and above the 200-day MA of 0.31, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	HK$379.96M	4.36	14.22%	―	5.20%	-21.61%
3662	67 Neutral	HK$384.91M	3.69	8.37%	42.51%	-14.98%	-39.71%
Sector *	61 Neutral	$2.83B	10.91	0.42%	11.76%	5.94%	-21.26%
1663	61 Neutral	HK$209.44M	3.36	3.30%	―	105.34%	75.69%
2107	57 Neutral	HK$391.64M	5.21	-1.62%	10.31%	7.48%	-118.08%
9608	49 Neutral	HK$387.84M	126.25	0.77%	―	-7.55%	-75.00%
1922		HK$363.33M	2.81		―	―	―

First Service Holding Limited Corporate Events

First Service Holding Limited Announces AGM and Strategic Resolutions

First Service Holding Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 20, 2025, in Beijing. The meeting will cover several key agenda items, including the adoption of financial statements for the year ended December 31, 2024, the declaration of a final dividend, re-election of directors, and re-appointment of KPMG as the company auditor. Additionally, the company seeks authorization for directors to allot and issue additional shares, reflecting strategic moves to enhance corporate governance and shareholder value.

First Service Holding Limited Completes Internal Control Review

First Service Holding Limited has completed an internal control review, revealing several governance issues, including a lack of specific investment limits and inadequate monitoring mechanisms. In response, the company has suspended transactions related to wealth management products and implemented remedial measures such as compliance training, appointing designated personnel for risk supervision, and revising internal policies to enhance governance and compliance.

First Service Holding Limited Enhances Internal Controls Following Review

First Service Holding Limited has completed an internal control review with the assistance of CityLinkers Corporate Advisory Services Limited. The review, covering the year 2024, identified several areas for improvement in corporate governance and fund management. Key findings highlighted the lack of specific investment limits and inadequate monitoring mechanisms for investment transactions. In response, the company has suspended transactions related to wealth management products, conducted compliance training, and revised internal policies and procedures to enhance risk management and compliance. These measures aim to strengthen the company’s internal controls and ensure adherence to the Listing Rules, potentially improving its market position and stakeholder confidence.

First Service Holding Limited Reports Revenue Growth and Expands Management Portfolio in 2024

First Service Holding Limited reported a revenue increase of 9.6% for the year ended 31 December 2024, driven by growth in property management and value-added services. Despite a decrease in gross profit margin and a reported loss of RMB6.3 million, the company achieved positive operating cash flows and expanded its total gross floor area under management by 17.3%. The board recommended a final dividend payout of HK$43.0 million, maintaining its commitment to shareholder returns.

First Service Holding Limited Announces Final Dividend for 2024

First Service Holding Limited has announced a final ordinary cash dividend of HKD 0.034 per share for the financial year ending December 31, 2024. This announcement, made on March 28, 2025, outlines key dates including the ex-dividend date on August 21, 2025, and the payment date on September 9, 2025. The dividend reflects the company’s financial performance and commitment to returning value to shareholders, with implications for investor confidence and market positioning.

First Service Holding Limited Issues Profit Warning for 2024

First Service Holding Limited has issued a profit warning, indicating an expected net loss of not more than RMB7.0 million for the year ended December 31, 2024, compared to a net profit of approximately RMB70.1 million in 2023. This anticipated decrease is primarily due to an impairment provision for trade receivables from related party real estate customers. The company is actively engaging with these customers to facilitate the collection of receivables, and it believes the provision will not significantly impact recovery efforts.

First Service Holding Limited Approves Wealth Management Subscriptions at EGM

First Service Holding Limited announced the successful passage of an ordinary resolution at their Extraordinary General Meeting held on February 20, 2025. The resolution approved the subscriptions of specific wealth management products by the company and its subsidiaries, with more than 50% of shareholders voting in favor. This decision supports the company’s ongoing investment strategies and reflects shareholder confidence in its financial management direction.