Tiger Brokers

FSE Lifestyle’s 1H26 Profit Slips 10.6%; Revenue -7.7%, Interim Dividend Set at HK$0.189

Bulletin Express
Mar 27

FSE Lifestyle Services Limited released its unaudited results for the six months ended 31 December 2025 (“1H26”).

Financial highlights • Revenue fell 7.7% year on year to HK$3.78 billion, reflecting a HK$390.80 million slide in Electrical & Mechanical (“E&M”) Services, partially offset by growth in City Essential Services (+HK$74.70 million) and stable Property & Facility Management revenue (+HK$3.20 million). • Gross profit edged down 1.4% to HK$517.30 million; gross margin improved to 13.7% from 12.8% on better City Essential and E&M mix. • Profit attributable to shareholders decreased 10.6% to HK$215.90 million; basic EPS slipped to HK$0.47 (-11.3%). • Interim dividend declared at HK$0.189 per share (1H25: HK$0.211), maintaining a 40.2% payout ratio. • Net cash position preserved with zero net gearing; cash and bank balances stood at HK$763.29 million.

Segment performance • City Essential Services generated HK$2.39 billion revenue (+3.2%), representing 63.2% of group total. Growth stemmed from new guarding, technical support & maintenance, and cleaning contracts, plus the first contribution from Beijing Nova (acquired December 2024). • Property & Facility Management revenue was broadly stable at HK$353.62 million, equal to 9.4% of turnover; gross margin held at 30.4%. • E&M Services revenue dropped 27.4% to HK$1.03 billion (27.4% of turnover) due to project completions and delays; segment gross margin improved to 13.1%.

Operational metrics • Contracts secured during 1H26 totalled HK$3.90 billion, lifting the order book’s outstanding value to HK$15.18 billion on a gross contract sum of HK$25.01 billion. • Headcount stood at 25,804, underlining the Group’s labour-intensive operating model.

Dividend timetable • Ex-dividend date: 10 March 2026 • Record date: 13 March 2026 • Payment date: on or about 27 March 2026

Outlook Management reiterated its focus on enhancing synergies among business units, cost optimisation, and disciplined tendering, while maintaining a prudent financial stance to navigate continued market volatility.

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