Far East Orchard Ltd. (O10) AI Stock Analysis

• Market Cap: €613.67M
• Dividend Yield: 3.2%
• Average Volume (3M): 162.37K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.22
• Revenue Growth: 4.49%
• EPS Growth: -10.72%
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 64
• Industry: Real Estate - Services
• EPS (TTM): 0.08
• Shares Outstanding: 490,939,300
• 10 Day Avg. Volume: 231,920
• 30 Day Avg. Volume: 162,373
• PEG Ratio: 1.71
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.79
• 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: 66 Neutral
• Price Target: S$1.50 ▲(20.00%Upside)

The overall stock score for Far East Orchard Ltd. is driven by a strong valuation due to its low P/E ratio and attractive dividend yield. However, technical analysis suggests caution due to potential overbought conditions. Financial performance is solid but shows areas for improvement in cash generation.

Far East Orchard Ltd. Business Overview & Revenue Model

Company Description

Far East Orchard Ltd. (O10) is a Singapore-based company engaged in real estate development and hospitality management. The company operates across two main sectors: property development and hospitality operations. Its core offerings include the development and sale of residential, commercial, and industrial properties, as well as the management and ownership of hotels and serviced residences under reputable brands. Far East Orchard is recognized for its strategic investments in prime locations and its ability to deliver quality real estate projects.

How the Company Makes Money

Far East Orchard Ltd. generates revenue through several key streams. In the real estate sector, the company earns income from the sale of developed properties, which includes residential, commercial, and industrial units. Additionally, it benefits from property leasing activities, where it rents out commercial spaces and other real estate holdings. In the hospitality sector, revenue is derived from the management and operation of hotels and serviced residences. This includes room bookings, food and beverage sales, and other ancillary services provided to guests. The company's strategic partnerships with international hospitality brands and its focus on expanding its hospitality footprint in key markets also contribute significantly to its earnings.

Far East Orchard Ltd. Financial Statement Overview

Summary

Far East Orchard Ltd. demonstrates solid financial health with consistent revenue growth and strong margins. However, challenges exist in terms of a decreasing net profit margin and declining operating cash flow, which impacts overall financial performance. The balance sheet remains stable with moderate leverage, indicating a strong equity position.

Income Statement

Far East Orchard Ltd. has shown a consistent revenue growth with a 4.5% increase in revenue from 2023 to 2024. The gross profit margin remains robust at 51.2% for 2024, indicating efficient cost management. However, the net profit margin decreased from 35.9% in 2023 to 30.7% in 2024, which suggests increased costs or reduced pricing power. The EBIT margin slightly declined to 19.8%, while the EBITDA margin is healthy at 54.8%, reflecting strong earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet shows a stable equity base with a debt-to-equity ratio of 0.50, indicating moderate leverage. The equity ratio is 52.5%, reflecting a strong equity position relative to total assets. The return on equity (ROE) decreased to 4.3% in 2024 from 4.9% in 2023, pointing to declining efficiency in generating profits from shareholders' equity.

Cash Flow

Far East Orchard Ltd. has experienced a decrease in operating cash flow from 60.4 million in 2023 to 46.7 million in 2024, impacting its ability to generate cash from operations. The free cash flow decreased by 27.4% year over year, but the free cash flow to net income ratio remains positive at 0.69, indicating that the company generates adequate free cash flow relative to its net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	191.87M	183.62M	140.97M	106.83M	112.22M
Gross Profit	98.27M	91.09M	73.11M	46.65M	44.46M
EBITDA	105.13M	115.21M	63.12M	64.22M	41.88M
Net Income	58.97M	65.95M	21.92M	28.13M	1.54M
Balance Sheet
Total Assets	2.64B	2.62B	2.54B	2.63B	2.62B
Cash, Cash Equivalents and Short-Term Investments	200.89M	225.63M	233.19M	255.19M	247.15M
Total Debt	691.68M	698.88M	701.88M	801.60M	831.07M
Total Liabilities	1.25B	1.25B	1.23B	1.33B	1.36B
Stockholders Equity	1.39B	1.36B	1.29B	1.28B	1.24B
Cash Flow
Free Cash Flow	40.79M	56.21M	36.18M	6.57M	17.68M
Operating Cash Flow	46.72M	60.38M	37.27M	16.59M	19.32M
Investing Cash Flow	-30.03M	-4.93M	629.00K	-12.04M	-76.31M
Financing Cash Flow	-37.19M	-60.74M	-47.48M	-24.91M	71.65M

Far East Orchard Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:O10, the sentiment is Positive. The current price of 1.25 is above the 20-day moving average (MA) of 1.11, above the 50-day MA of 1.05, and above the 200-day MA of 1.00, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 85.53 is Negative, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:O10.

Far East Orchard Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AW9U	73 Outperform	$588.82M	16.67	5.74%	8.43%	-7.43%	-43.62%
O10	66 Neutral	€613.67M	10.36	4.28%	3.20%	4.49%	-10.72%
Sector *	65 Neutral	$2.05B	16.90	2.45%	5.19%	-0.30%	1.21%
5JK	61 Neutral	S$268.22M	40.71	0.92%	1.32%	12.04%	18.64%
H30	60 Neutral	S$695.44M	22.70	1.03%	1.19%	-5.00%	-73.03%
LJ3	58 Neutral	€789.49M	―	-8.35%	1.75%	3.76%	-480.94%
5UX	50 Neutral	€510.89M	―	-10.73%	―	-34.68%	-10.10%

Far East Orchard Ltd. Corporate Events

Far East Orchard Secures £96 Million for Student Accommodation Fund

Far East Orchard Limited has successfully closed its first private student accommodation development fund, securing £96.0 million in committed capital. This move aligns with the company’s strategy to adopt an asset-light model and enhance its recurring fee-based income. The fund, which targets purpose-built student accommodation in key UK university cities, has already allocated over 35% of its capital to projects in Glasgow and Manchester. This development underscores Far East Orchard’s commitment to expanding its lodging platform and delivering long-term value to stakeholders through strategic investments and partnerships.

Far East Orchard’s Associated Company Wins Appeal in Misrepresentation Case

Far East Orchard Limited announced that its associated company, FEOpus, has successfully appealed against a court decision related to alleged misrepresentations in the sale of units at SBF Center, a commercial development completed in 2016. The court’s ruling, which overturned the Assistant Registrar’s decision, is significant as it sets a legal precedent that will affect all other claimants involved in similar cases, potentially impacting the financial liabilities of FEOpus and the company’s market positioning.

Far East Orchard Ltd. Ends Joint Venture in China

Far East Orchard Ltd. announced the termination of its joint venture agreement with Real Hospitality Group Asia Co., Limited, which was initially aimed at establishing a hospitality management business in China. The decision to terminate was due to the inability to find suitable opportunities post-COVID-19 recovery in the tourism sector. The company stated that this termination will not materially impact its financial performance for the year ending December 2025, and it remains committed to seeking strategic opportunities in other regions.

Far East Orchard Limited’s 57th AGM Highlights Strategic Focus

Far East Orchard Limited held its 57th Annual General Meeting, where the Group CEO, Mr. Alan Tang, presented the company’s financial performance for the year ending December 2024. The meeting highlighted the company’s strategic focus on hospitality and property development amidst geopolitical and economic challenges, with voting conducted by poll.

Far East Orchard Achieves S$17.1 Million Profit in Q1 FY2025

Far East Orchard Limited reported a profit after tax of S$17.1 million for the first quarter of FY2025, significantly boosted by a one-off gain from increasing its stake in Woods Square. Despite a decline in revenue due to refurbishment at an Australian property, the company saw strong contributions from its UK student accommodation segment and property development business, reflecting its strategic focus on scaling its lodging platform.