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Far East Orchard Ltd. (SG:O10)
SGX:O10

Far East Orchard Ltd. (O10) AI Stock Analysis

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Far East Orchard Ltd.

(SGX:O10)

Rating:67Neutral
Price Target:
Far East Orchard Ltd. is in solid financial health, with strong revenue growth and robust margins, although profitability and cash flow challenges persist. The technical indicators suggest a neutral trend, and the stock appears undervalued with an attractive dividend yield, making it appealing for value investors.

Far East Orchard Ltd. (O10) vs. iShares MSCI Singapore ETF (EWS)

Far East Orchard Ltd. Business Overview & Revenue Model

Company DescriptionFar East Orchard Ltd. (O10) is a Singapore-based company engaged primarily in real estate development and hospitality management. The company operates in various sectors including property development, hotel ownership and management, and property investment. Its core services include developing residential, commercial, and hospitality projects, as well as managing a portfolio of strategically located hotels and serviced residences in Singapore and other key international markets.
How the Company Makes MoneyFar East Orchard Ltd. generates revenue through multiple streams. The primary revenue sources include the sale of developed properties, which encompasses residential and commercial real estate projects. Additionally, the company earns income from its hospitality operations, which involve owning and managing hotels and serviced residences under various brand names. This includes room bookings, food and beverage sales, and other hospitality services. The company also benefits from rental income through its investment portfolio of commercial and industrial properties. Moreover, Far East Orchard engages in strategic partnerships and joint ventures, which help enhance its market presence and contribute to its revenue. These partnerships often involve collaborations with other real estate developers or hospitality brands to leverage mutual strengths and expand their service offerings.

Far East Orchard Ltd. Financial Statement Overview

Summary
Far East Orchard Ltd. shows solid financial health with consistent revenue growth and strong margins. However, challenges such as declining net income margins and reduced operating cash flow impact its financial performance. The balance sheet remains stable with moderate leverage, but addressing profitability and cash flow issues is crucial for improvement.
Income Statement
72
Positive
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
65
Positive
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
68
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue190.09M191.87M183.62M140.97M106.83M112.22M
Gross Profit92.34M98.27M91.09M73.11M46.65M44.46M
EBITDA48.04M105.13M115.21M63.12M64.22M41.88M
Net Income75.97M58.97M65.95M21.92M28.13M1.54M
Balance Sheet
Total Assets2.64B2.64B2.62B2.54B2.63B2.62B
Cash, Cash Equivalents and Short-Term Investments202.31M200.89M225.63M233.19M255.19M247.15M
Total Debt707.57M691.68M698.88M701.88M801.60M831.07M
Total Liabilities1.27B1.25B1.25B1.23B1.33B1.36B
Stockholders Equity1.36B1.39B1.36B1.29B1.28B1.24B
Cash Flow
Free Cash Flow41.77M40.79M56.21M36.18M6.57M17.68M
Operating Cash Flow46.38M46.72M60.38M37.27M16.59M19.32M
Investing Cash Flow-15.82M-30.03M-4.93M629.00K-12.04M-76.31M
Financing Cash Flow-58.30M-37.19M-60.74M-47.48M-24.91M71.65M

Far East Orchard Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.06
Price Trends
50DMA
1.00
Positive
100DMA
0.99
Positive
200DMA
0.98
Positive
Market Momentum
MACD
<0.01
Negative
RSI
59.53
Neutral
STOCH
88.89
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 1.06 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 1.00, and above the 200-day MA of 0.98, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$567.79M16.075.74%8.59%-7.43%-43.62%
72
Outperform
$567.79M16.075.74%8.59%-7.43%-43.62%
SGO10
67
Neutral
€520.40M8.784.28%3.92%4.49%-10.72%
66
Neutral
$1.96B17.422.45%5.23%-1.17%4.31%
SGH30
60
Neutral
S$633.35M20.681.03%1.71%-5.00%-73.03%
SGH30
60
Neutral
S$633.35M20.681.03%1.71%-5.00%-73.03%
SGLJ3
56
Neutral
€734.09M-8.35%1.89%3.76%-480.94%
SGLJ3
56
Neutral
€734.09M-8.35%1.89%3.76%-480.94%
SG5JK
48
Neutral
S$242.34M36.790.92%1.89%12.04%18.64%
SG5JK
48
Neutral
S$242.34M36.790.92%1.89%12.04%18.64%
SG5UX
47
Neutral
€382.09M-10.73%-34.68%-10.10%
SG5UX
47
Neutral
€382.09M-10.73%-34.68%-10.10%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:O10
Far East Orchard Ltd.
1.02
0.06
6.14%
SG:5JK
Hiap Hoe Ltd.
0.52
-0.08
-13.33%
SG:5JK
Hiap Hoe Ltd.
0.52
-0.08
-13.33%
SG:LJ3
OUE Ltd.
1.06
-0.09
-7.50%
SG:LJ3
OUE Ltd.
1.06
-0.09
-7.50%
SG:H30
Hong Fok Corporation Limited
0.76
-0.05
-6.17%
SG:H30
Hong Fok Corporation Limited
0.76
-0.05
-6.17%
SG:5UX
Oxley Holdings Ltd.
0.09
<0.01
10.13%
SG:5UX
Oxley Holdings Ltd.
0.09
<0.01
10.13%
SG:AW9U
First Real Estate Investment
0.27
0.04
18.42%

Far East Orchard Ltd. Corporate Events

Far East Orchard Secures £96 Million for Student Accommodation Fund
Jun 18, 2025

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
Jun 10, 2025

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
Jun 4, 2025

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
May 22, 2025

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
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 30, 2025