Far East Horizon Limited (3360) AI Stock Analysis

• Market Cap: HK$32.50B
• Dividend Yield: 7.86%
• Average Volume (3M): 10.12M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.52
• 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: 4,779,052,200
• 10 Day Avg. Volume: 12,189,842
• 30 Day Avg. Volume: 10,118,937
• PEG Ratio: -0.18
• 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$9.15
• Price Target Upside: 30.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: HK$8.00 ▲(14.12% Upside)

Far East Horizon Limited's stock score is primarily influenced by its financial performance and valuation. While the company shows growth potential and strong cash flow management, challenges with declining profit margins and high leverage are concerns. The stock's valuation is attractive with a low P/E ratio and high dividend yield, but technical indicators suggest a bearish trend.

Positive Factors

Cash Flow Management

Improved cash flow management enhances financial stability, allowing the company to better manage its operations and investments, ensuring long-term sustainability.

Revenue Streams

Diversified revenue streams and strategic partnerships strengthen market position and reduce dependency on any single income source, supporting long-term growth.

Operational Efficiency

A strong EBITDA margin indicates effective cost management and operational efficiency, which are crucial for maintaining profitability despite revenue fluctuations.

Negative Factors

Declining Profit Margins

A significant decline in profit margins can impact overall profitability, indicating challenges in maintaining cost controls or pricing power.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Revenue Growth Challenges

Negative revenue growth suggests difficulties in expanding market share or product adoption, which could hinder long-term growth prospects.

Far East Horizon Limited Business Overview & Revenue Model

Company Description

Far East Horizon Limited, together with its subsidiaries, provides various financial services in Mainland China, Hong Kong, and internationally. It operates in two segments, Financial, Lease and Advisory; and Industrial Operation and Management. The Financial, Lease and Advisory segment offers direct finance leasing, sale-leaseback, factoring, entrusted loans, operating lease, and advisory services. The Industrial Operation and Management segment is involved in the import and export, and domestic trade of medical equipment; investment, operation, and management of hospitals; and provision of ship brokerage, medical engineering, healthcare management, and education consulting and management services, as well as trade agency services primarily within the machinery industry. The company also offers trading and brokerage, engineering management and construction, equipment operation, medical, construction, construction investment, ecotechnology, property, investment management, management consulting, and technical services. It serves healthcare, cultural and tourism, engineering construction, machinery, chemical and medicine, electronic information, public consuming, transportation and logistics, urban public utility, and other industries. The company was formerly known as Far Eastern Hong Xin Co., Limited and changed its name to Far East Horizon Limited in November 2010. Far East Horizon Limited was incorporated in 2008 and is headquartered in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Far East Horizon Limited generates revenue primarily through its financial leasing business, which involves leasing a variety of equipment and assets to clients across multiple industries. The company earns income from lease payments and interest on financial leases. Additionally, Far East Horizon offers advisory and consulting services, generating fees for financial consultancy and management solutions. The company's earnings are also bolstered by its strategic partnerships with key sector players, enabling it to expand its market reach and enhance service offerings. Its diversified revenue streams and strong industry presence contribute significantly to its overall financial performance.

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. Cash flow management has improved, providing financial stability, but attention is needed on profitability and leverage.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.75B	36.57B	35.99B	33.64B	29.04B
Gross Profit	15.80B	16.96B	17.86B	17.21B	14.97B
EBITDA	11.30B	12.01B	12.70B	12.35B	9.98B
Net Income	3.89B	6.30B	6.38B	5.90B	5.03B
Balance Sheet
Total Assets	360.39B	351.48B	346.99B	335.88B	299.93B
Cash, Cash Equivalents and Short-Term Investments	34.20B	22.07B	19.67B	19.63B	15.15B
Total Debt	265.91B	256.62B	251.83B	230.81B	206.04B
Total Liabilities	302.91B	293.91B	294.55B	282.83B	254.66B
Stockholders Equity	48.99B	51.67B	48.33B	49.04B	42.60B
Cash Flow
Free Cash Flow	1.55B	1.17B	-11.64B	-25.33B	-31.64B
Operating Cash Flow	9.97B	3.73B	-7.69B	-14.87B	-24.46B
Investing Cash Flow	-3.54B	-2.40B	-1.77B	-9.85B	-10.55B
Financing Cash Flow	-5.60B	1.59B	9.61B	28.52B	42.94B

Far East Horizon Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.01
• 50DMA: Negative
• 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 Neutral. The current price of 7.01 is below the 20-day moving average (MA) of 7.16, below the 50-day MA of 7.42, and above the 200-day MA of 6.09, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.70 is Neutral, neither overbought nor oversold. The STOCH value of 23.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1606	74 Outperform	21.62B	3.99	11.18%	5.70%	3.21%	23.13%
1905	69 Neutral	7.25B	4.84	0.00%	57.18%	0.59%	-5.95%
1601	68 Neutral	1.21B	4.05	0.00%	7.10%	1.16%	3.98%
3360	64 Neutral	HK$32.50B	6.96	7.90%	7.86%	-1.77%	-24.74%
1563	61 Neutral	404.13M	13.90	1.08%	―	-9.75%	-81.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Far East Horizon Limited Corporate Events

Far East Horizon Limited Announces Share Option Grant

Far East Horizon Limited has announced the grant of share options to participants under its Share Option Scheme, involving 34,521,086 ordinary shares, which represent approximately 0.72% of the company’s total shares. This move is aimed at incentivizing participants and aligning their performance with the company’s strategic goals, potentially enhancing operational efficiency and stakeholder value.

The most recent analyst rating on (HK:3360) stock is a Buy with a HK$8.40 price target. To see the full list of analyst forecasts on Far East Horizon Limited stock, see the HK:3360 Stock Forecast page.

Far East Horizon Limited Declares Interim Dividend for 2025

Far East Horizon Limited has announced an interim cash dividend of HKD 0.25 per share for the six months ending June 30, 2025. The dividend will be paid on September 24, 2025, with a record date of September 15, 2025. This announcement underscores the company’s commitment to delivering value to its shareholders and may enhance its attractiveness in the financial market.

The most recent analyst rating on (HK:3360) stock is a Buy with a HK$8.70 price target. To see the full list of analyst forecasts on Far East Horizon Limited stock, see the HK:3360 Stock Forecast page.

Far East Horizon Limited Releases 2025 Interim Results

Far East Horizon Limited announced its unaudited interim results for the first half of 2025, showing a comparison with the same period in 2024. This announcement aligns with the regulatory requirements of the Hong Kong Stock Exchange, reflecting the company’s adherence to transparency and governance standards. The results are expected to impact the company’s operational strategies and market positioning, potentially influencing stakeholder confidence and investment decisions.

The most recent analyst rating on (HK:3360) stock is a Buy with a HK$8.40 price target. To see the full list of analyst forecasts on Far East Horizon Limited stock, see the HK:3360 Stock Forecast page.

Far East Horizon Announces Partial Bond Conversion and Share Issuance

Far East Horizon Limited announced a partial cancellation of its U.S.$300 million 2.50% guaranteed convertible bonds due 2025, as approximately 41.74% of the bonds were converted into shares. This conversion results in the issuance of 187,001,745 shares, representing about 4.30% of the company’s total issued share capital, indicating a strategic move to manage its financial obligations and potentially improve its market positioning.

The most recent analyst rating on (HK:3360) stock is a Buy with a HK$8.70 price target. To see the full list of analyst forecasts on Far East Horizon Limited stock, see the HK:3360 Stock Forecast page.

Far East Horizon Updates $4 Billion Securities Programme

Far East Horizon Limited has announced an update to its US$4 billion Medium Term Note and Perpetual Securities Programme, allowing for the issuance of notes and securities in series. This update, facilitated by UBS as the arranger, is designed to provide the company with enhanced flexibility and efficiency in future funding and capital management. The timing and amount of any drawdowns under the updated program will depend on market conditions and the company’s funding needs. The company intends to use the proceeds for working capital and general corporate purposes, with potential on-lending to its subsidiaries in the PRC.

The most recent analyst rating on (HK:3360) stock is a Buy with a HK$8.70 price target. To see the full list of analyst forecasts on Far East Horizon Limited stock, see the HK:3360 Stock Forecast page.

Far East Horizon Announces Partial Bond Conversion and Cancellation

Far East Horizon Limited has announced the partial cancellation of their U.S.$300,000,000 2.50% guaranteed convertible bonds due 2025, issued by Universe Trek Limited. From June 14, 2025, an aggregate principal amount of U.S.$42,361,000, representing 14.12% of the initial bonds, was converted into shares and cancelled. This conversion resulted in the issuance of 63,258,275 shares, accounting for 1.46% of the total issued share capital of the guarantor. The remaining outstanding bonds amount to U.S.$202,734,000, which could potentially increase the share capital by 6.97% upon full conversion.

The most recent analyst rating on (HK:3360) stock is a Buy with a HK$8.70 price target. To see the full list of analyst forecasts on Far East Horizon Limited stock, see the HK:3360 Stock Forecast page.

Far East Horizon Schedules Board Meeting for Interim Results Review

Far East Horizon Limited has announced a board meeting scheduled for August 1, 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 the company’s ongoing financial performance and commitment to shareholder returns.

The most recent analyst rating on (HK:3360) stock is a Buy with a HK$8.70 price target. To see the full list of analyst forecasts on Far East Horizon Limited stock, see the HK:3360 Stock Forecast page.

Far East Horizon Announces Partial Bond Conversion and Share Issuance

Far East Horizon Limited has announced a partial cancellation of its U.S.$300 million 2.50% guaranteed convertible bonds due 2025, following conversions amounting to approximately U.S.$20.9 million. This conversion resulted in the issuance of 31,217,730 new shares, representing about 0.72% of the company’s total issued share capital. The remaining outstanding bonds total U.S.$245.1 million, which, if fully converted, could increase the company’s share capital by approximately 8.42%. This move reflects the company’s ongoing financial strategy and its impact on shareholder value and market positioning.

The most recent analyst rating on (HK:3360) stock is a Buy with a HK$8.70 price target. To see the full list of analyst forecasts on Far East Horizon Limited stock, see the HK:3360 Stock Forecast page.