Far East Horizon Limited (3360) AI Stock Analysis

• Market Cap: HK$38.19B
• Dividend Yield: 6.7%
• Average Volume (3M): 9.25M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.49
• Revenue Growth: -1.77%
• EPS Growth: -24.74%
• Country: HK
• Employees: 19,171
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.51
• Shares Outstanding: 4,788,025,400
• 10 Day Avg. Volume: 6,336,776
• 30 Day Avg. Volume: 9,245,007
• PEG Ratio: -0.15
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 16.23
• 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: HK$8.95
• Price Target Upside: 9.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$8.50 ▲(3.53% Upside)

Far East Horizon Limited's overall score is driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, which make it attractive for value and income investors. However, financial performance is mixed with growth potential offset by declining profit margins and high leverage. Technical analysis suggests bullish momentum but warns of potential overbought conditions.

Positive Factors

Cash Flow Management

Enhanced cash flow management indicates the company's ability to efficiently convert income into cash, providing financial flexibility and stability.

Revenue Growth

Consistent revenue growth reflects the company's expanding market presence and successful business model in financial leasing and asset management.

Operational Efficiency

A robust EBITDA margin indicates effective cost management and operational efficiency, contributing to the company's long-term profitability.

Negative Factors

High Leverage

Significant leverage poses financial risks and may limit the company's ability to invest in growth opportunities, affecting long-term stability.

Declining Profit Margins

Falling profit margins indicate challenges in maintaining profitability, which could impact future earnings and shareholder returns.

Profitability Concerns

A decrease in return on equity suggests reduced efficiency in generating profits from shareholders' investments, potentially affecting investor confidence.

Far East Horizon Limited Business Overview & Revenue Model

Company Description

Far East Horizon Limited (3360) is a leading investment and asset management company based in China, primarily engaged in the provision of financial leasing services, asset management, and investment services. The company operates across various sectors including healthcare, education, and infrastructure, focusing on facilitating the acquisition of tangible and intangible assets through innovative financing solutions. Its core products include financial leasing agreements, where it leases equipment or property to clients, and asset management services that cater to individual and institutional investors.

How the Company Makes Money

Far East Horizon generates revenue primarily through its financial leasing business, where it earns income from leasing equipment and other assets to clients. The company charges leasing fees, which are structured based on the value and duration of the lease agreement. Additionally, it derives income from asset management fees for managing investment portfolios and providing advisory services to clients. The company also engages in direct investments and partnerships, often entering into joint ventures with corporations in various sectors, which further contribute to its revenue. These partnerships enable Far East Horizon to expand its service offerings and enter new markets, enhancing its earnings potential.

Far East Horizon Limited Financial Statement Overview

Summary

Far East Horizon Limited shows growth potential with increasing revenues but faces challenges with declining profit margins and high leverage. The company has improved cash flow management, providing financial stability, but needs to address profitability and leverage for long-term health.

Income Statement

Over the years, Far East Horizon Limited has shown a steady increase in total revenue, demonstrating growth potential. However, there's a noticeable decline in gross profit margin from 2023 to 2024 due to reduced gross profit, which may impact profitability. Net profit margin has also decreased significantly from 17.23% in 2023 to 10.32% in 2024, highlighting a reduction in net income. Despite these challenges, the company's EBITDA margin remains strong, showcasing operational efficiency.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 5.43, indicating significant leverage which could pose financial risks. The equity ratio, however, shows a slight improvement, suggesting a stable asset base. Return on equity is currently at 7.95%, indicating moderate profitability on shareholders' investments, but this has decreased from previous years, warranting caution.

Cash Flow

Far East Horizon Limited has improved its free cash flow significantly from 2023 to 2024, reflecting better cash management. The operating cash flow to net income ratio is strong, suggesting that the company efficiently converts its net income into cash. The free cash flow to net income ratio also indicates positive cash flow in relation to net income, indicating financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.40B	37.75B	36.57B	34.08B	31.68B	29.04B
Gross Profit	15.45B	15.80B	16.96B	34.08B	31.68B	14.97B
EBITDA	-15.52B	11.30B	12.01B	14.45B	12.35B	9.98B
Net Income	3.94B	3.89B	6.30B	6.38B	5.90B	5.03B
Balance Sheet
Total Assets	363.80B	360.39B	351.48B	346.99B	335.88B	299.93B
Cash, Cash Equivalents and Short-Term Investments	21.30B	34.20B	22.07B	19.67B	19.63B	15.15B
Total Debt	266.30B	265.91B	256.62B	251.83B	230.81B	206.04B
Total Liabilities	304.32B	302.91B	293.91B	294.55B	282.83B	254.66B
Stockholders Equity	51.00B	48.99B	51.67B	48.33B	49.04B	42.60B
Cash Flow
Free Cash Flow	3.10B	1.55B	1.17B	-11.64B	-25.33B	-31.64B
Operating Cash Flow	9.15B	9.97B	3.73B	-7.69B	-14.87B	-24.46B
Investing Cash Flow	-1.92B	-3.54B	-2.40B	-1.77B	-9.85B	-10.55B
Financing Cash Flow	-11.99B	-5.60B	1.59B	9.61B	28.52B	42.94B

Far East Horizon Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.21
• 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:3360, the sentiment is Positive. The current price of 8.21 is above the 20-day moving average (MA) of 8.10, above the 50-day MA of 7.65, and above the 200-day MA of 6.84, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3360.

Far East Horizon Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1577	80 Outperform	HK$680.00M	6.20	8.46%	5.46%	-24.04%	60.24%
1606	74 Outperform	HK$20.99B	3.87	13.09%	5.84%	3.17%	23.13%
1905	69 Neutral	HK$6.51B	4.35	7.87%	11.28%	0.59%	-5.95%
1601	68 Neutral	HK$1.39B	3.83	9.89%	7.51%	1.11%	3.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
3360	66 Neutral	HK$38.19B	8.16	7.90%	6.70%	-1.77%	-24.74%
1563	59 Neutral	HK$312.82M	22.50	0.49%	―	8.77%	-76.88%

Far East Horizon Limited Corporate Events

Far East Horizon Executes HKD350 Million Note Drawdown

Far East Horizon Limited announced a drawdown of HKD350,000,000 under its US$4 billion Medium Term Note and Perpetual Securities Programme. The proceeds from this issuance, rated BBB- by S&P, will be used for working capital and general corporate purposes, with potential on-lending to its subsidiaries in the PRC, pending necessary approvals.

Far East Horizon Limited Issues JPY8 Billion in Sustainability Notes

Far East Horizon Limited announced a drawdown of JPY8,000,000,000 under its Medium Term Note and Perpetual Securities Programme. The proceeds from this issuance, which is aimed at professional investors, will be used to finance and refinance green and social projects, aligning with the company’s sustainable financing framework.

Far East Horizon Limited Reports Steady Growth and Profit Increase in Q3 2025

Far East Horizon Limited reported a year-on-year increase in profit attributable to ordinary shareholders for the first three quarters of 2025, driven by steady growth in its financial business. The company maintained robust asset quality and saw significant expansion in its inclusive finance segment, with interest-earning assets increasing by over 60% year-on-year. Despite a decline in revenue for Horizon Healthcare, the group remained profitable overall. The company’s effective risk management strategies ensured a stable liquidity position, and it continues to focus on its ‘finance + industry’ development strategy to enhance shareholder returns.

Far East Horizon Adjusts Convertible Bond Conversion Price Following Dividend Declaration

Far East Horizon Limited announced an adjustment to the conversion price of its U.S.$250,000,000 zero coupon guaranteed convertible bonds due 2026, as a result of declaring an interim dividend. The conversion price adjustment, effective from 24 September 2025, will lower the price from HK$6.70 to HK$6.48 per share, increasing the maximum number of shares issuable upon full conversion. This adjustment reflects the company’s strategic financial management and could impact shareholder value and market perception.