Far East Consortium (SEHK:35) H1 Net Loss of $505M HKD Reinforces Bearish Profitability Narrative

Far East Consortium International (SEHK:35) has just posted its H1 2026 financials, reporting revenue of $4.4 billion HKD and a basic EPS of -0.15 HKD. Looking back, the company saw revenue move from $3.8 billion HKD in H2 2024 to $5.2 billion HKD in H1 2025, while EPS shifted from -0.00 HKD to -0.27 HKD over that same stretch. Ongoing net losses continue to weigh on results, with profit margins remaining firmly in negative territory this period.

See our full analysis for Far East Consortium International.

Next up, we will see how these results stack up against the prevailing narratives and which perspectives might shift as investors digest the numbers.

See what the community is saying about Far East Consortium International

Net Loss Swells to $505 Million

• Net income excluding extra items for H1 2026 was -$505 million, a deterioration compared with -$6.1 million in H2 2024 and -$770 million in H1 2025.
• Analysts' consensus narrative highlights that ongoing high finance costs and impairment losses on projects remain a pressing concern for profitability, with net profit margins not showing signs of recovery:
  • Finance costs reached $497 million and properties' gross margin slipped from 2.1% to 1.6%, reflecting pressure on bottom-line results.
  • Bears point to the 65% annual increase in net losses over the past five years and the lack of progress toward positive earnings as evidence that risks around revenue decline and elevated debt levels are still unresolved.
• Consensus narrative expects unprofitability to persist over the next three years, with forecast revenue decline of 21.4% per year, and sees no indication of a turnaround in margins.

📊 Read the full Far East Consortium International Consensus Narrative.

Discounted Price vs. Peer Multiples

• Shares trade at HK$0.7, which is 94.9% below the DCF fair value of HK$13.82, and the company’s Price-to-Sales Ratio of 0.3x undercuts the Hong Kong real estate industry (0.7x) as well as peers (3.2x).
• The consensus narrative sees deep value in these valuation ratios, but warns that the market discount may simply reflect ongoing risk:
  • Although the low valuation could appeal to value investors, it is mainly because recurring losses and high debt, as shown by a net gearing ratio of 68.8%, keep pressure on the stock.
  • Interest payments are notably uncovered by current earnings, exposing the company to balance sheet stress if negative trends persist.

Projected Revenue Drop of 21.4% Annually

• Far East Consortium International’s revenue is expected to shrink by 21.4% per year over the next three years, based on consensus projections, with little sign it will return to profitability within this period.
• Consensus narrative argues that, absent an acceleration in project completions or a sharp rebound in profit margins, there is little near-term upside:
  • Analysts agree that substantial improvement is conditional on higher completion rates, inventory sales, and material reduction in finance costs to restore margin strength.
  • The potential for earnings turnaround is anchored in strategic debt reduction and asset monetization, but consistently weak profit margins and revenue pressure continue to challenge the bull case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Far East Consortium International on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Far East Consortium International research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Far East Consortium International’s widening losses, high net gearing, and persistent negative margins point to ongoing balance sheet stress and financial health concerns.

If you’re looking to sidestep these issues, discover companies with robust financial footing and resilience by starting with solid balance sheet and fundamentals stocks screener (1933 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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