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HK Equities · Finance research note

HKEX 3355 - FS.COM Ltd. - H Shares

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Evidence and analysis

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2. Company Fundamentals

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -3.38%
Risk / Std Dev (Ann.)* 96.54%
1-Year Price Return* -16.90%

Latest Market Data (as of 2026-08-14, Hong Kong time):

Metric Value
Last Price HK$39.72
52-Week Range HK$27.96 – HK$57
Observation Count 97 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year price series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in HK$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue HK$2.97B HK$2.61B
Net income Reported net income HK$601.47M HK$397.26M
Total assets Year-end reported balance HK$3.95B HK$3.55B
Shareholders’ equity Year-end reported balance HK$2.16B HK$2.40B
Net margin Net income ÷ revenue 20.28% 15.21%
Asset turnover Revenue ÷ total assets 0.7500x 0.7356x
Equity multiplier Total assets ÷ shareholders’ equity 1.8307x 1.4789x
ROE Net margin × asset turnover × equity multiplier 27.85% 16.55%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue HK$2.97B
Prior annual revenue HK$2.61B
EBIT HK$713.38M
Tax rate 12.23%
NOPAT = EBIT × (1 − tax rate) HK$626.15M
Forecast start-growth basis 13.55%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT HK$626.15M
Add: depreciation & amortisation HK$130.80M
Less: capital expenditure -HK$83.16M
Less/(add): working-capital cash-flow movement HK$62.71M
Current unlevered FCFF HK$736.49M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 13.55% HK$710.99M HK$148.52M -HK$94.43M HK$71.21M HK$836.28M HK$797.48M
2 10.79% HK$787.68M HK$164.54M -HK$119.59M HK$78.89M HK$911.51M HK$790.43M
3 8.02% HK$850.88M HK$177.74M -HK$145.37M HK$85.22M HK$968.47M HK$763.71M
4 5.26% HK$895.66M HK$187.09M -HK$170.06M HK$89.70M HK$1.00B HK$718.82M
5 2.50% HK$918.05M HK$191.77M -HK$191.77M HK$91.94M HK$1.01B HK$658.62M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.00
Cost of equity 10.21%
Pre-tax cost of debt 4.20%
WACC 9.97%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value HK$13.86B
Implied terminal EV / EBITDA 11.20x
Terminal value as % of enterprise value 69.81%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF HK$3.73B
Present value of terminal value HK$8.62B
Indicated enterprise value HK$12.35B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value HK$12.35B
Less: gross interest-bearing debt HK$635.93M
Add: cash and equivalents HK$1.57B
Add: affiliate investments HK$0.00
Less: minority interests HK$0.00
Indicated common equity value HK$13.28B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 400,000,000.00
Share-count basis reported diluted weighted-average shares
Current market price HK$39.90
DCF indicative value per share HK$33.20
Indicative value vs. market price -16.80%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:06:20.406909 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Factor-model exception: No sufficiently aligned issuer-return and regional factor-return sample is available. No Fama–French loading or alpha estimate is published on an incomplete basis.

Factor models are descriptive in-sample exposure diagnostics, not forecasts, investment recommendations, or estimates of future returns. This is research and analysis only, not personalized financial advice.

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