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35: Higher Future Earnings Multiple Will Drive Improved Prospects Despite Interim Loss

Property Development And Hotel Projects Will Shape Outlook Amid Debt

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35
AnalystConsensusTarget
Not Invested
Published 30 Mar 2025

Update shared on 14 Dec 2025

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-3.9%

Analysts have raised their price target on Far East Consortium International from HKD 4.97 to HKD 7.58, citing a higher justified future price to earnings multiple despite broadly unchanged assumptions for fair value, discount rate, revenue growth, and profit margins.

What's in the News

  • The board resolved not to declare an interim dividend for the first half ended 30 September 2025, compared with 1.0 HK cent per share a year earlier (Key Developments)
  • The company expects to record a loss attributable to shareholders of not more than HKD 990 million for the six months ended 30 September 2025, versus a loss of approximately HKD 770 million for the same period in 2024, driven by weaker property sales and impairment losses (Key Developments)
  • A board meeting is scheduled for 27 November 2025 to approve and publish interim results for the six months ended 30 September 2025 and to consider any recommendation on an interim dividend (Key Developments)

Valuation Changes

  • Fair Value remains unchanged at 0.93x, indicating no revision to the underlying valuation multiple.
  • The Discount Rate is effectively stable at about 13.02 percent, implying no meaningful change in perceived risk or required return.
  • Revenue Growth is marginally lower, with the projected decline edging from approximately minus 13.47 percent to about minus 13.47 percent, signalling virtually no change in top line expectations.
  • The Net Profit Margin is fractionally reduced from roughly 10.26 percent to about 10.26 percent, indicating a negligible downgrade in profitability assumptions.
  • The Future P/E is raised significantly from about 4.97x to approximately 7.58x, reflecting a higher justified valuation multiple despite largely unchanged fundamentals.

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Disclaimer

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