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HK Equities · Finance research note

HKEX 0618 - Peking University Resources (Holdings) Co. Ltd.

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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.)* 170.15%
Risk / Std Dev (Ann.)* 80.03%
1-Year Price Return* 96.88%

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

Metric Value
Last Price HK$0.35
52-Week Range HK$0.148 – HK$0.5
Observation Count 245 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 FY2026 FY2025
Revenue Reported revenue HK$1.55B HK$1.62B
Net income Reported net income HK$1.78B HK$-2.34B
Total assets Year-end reported balance HK$3.85B HK$10.21B
Shareholders’ equity Year-end reported balance HK$589.68M HK$-1.26B
Net margin Net income ÷ revenue 114.95% -144.57%
Asset turnover Revenue ÷ total assets 0.4031x 0.1585x
Equity multiplier Total assets ÷ shareholders’ equity 6.5279x -8.1299x
ROE Net margin × asset turnover × equity multiplier 302.45% 186.27%

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$1.55B
Prior annual revenue HK$1.62B
EBIT HK$1.72B
Tax rate 40.00%
NOPAT = EBIT × (1 − tax rate) HK$1.03B
Forecast start-growth basis -4.14%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT HK$1.03B
Add: depreciation & amortisation HK$24.13M
Less: capital expenditure -HK$6.99M
Less/(add): working-capital cash-flow movement HK$564.70M
Current unlevered FCFF HK$1.62B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 -4.14% HK$990.62M HK$23.13M -HK$6.70M HK$541.32M HK$1.55B HK$1.51B
2 -2.48% HK$966.06M HK$22.55M -HK$10.54M HK$527.89M HK$1.51B HK$1.39B
3 -0.82% HK$958.13M HK$22.37M -HK$14.43M HK$523.57M HK$1.49B HK$1.31B
4 0.84% HK$966.18M HK$22.56M -HK$18.55M HK$527.96M HK$1.50B HK$1.25B
5 2.50% HK$990.33M HK$23.12M -HK$23.12M HK$541.16M HK$1.53B HK$1.22B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.10
Cost of equity 5.29%
Pre-tax cost of debt 8.14%
WACC 5.24%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value HK$57.38B
Implied terminal EV / EBITDA 34.28x
Terminal value as % of enterprise value 86.93%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF HK$6.69B
Present value of terminal value HK$44.46B
Indicated enterprise value HK$51.15B
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$51.15B
Less: gross interest-bearing debt HK$142.34M
Add: cash and equivalents HK$301.99M
Add: affiliate investments HK$0.00
Less: minority interests HK$1.19B
Indicated common equity value HK$50.12B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 2,737,417,000.00
Share-count basis reported diluted weighted-average shares
Current market price HK$0.33
DCF indicative value per share HK$18.31
Indicative value vs. market price 5,448.17%

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 review required
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% review required

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 16:29:34.705000 UTC; latest reported fiscal period: 2026-03-31 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

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set Asia Pacific ex Japan
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-20 to 2026-06-30
Aligned daily observations 210
Minimum observation requirement 120
Currency conversion for HK listings HKD adjusted close divided by daily USD/HKD close before simple daily return calculation

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha 329.92% 351.78%
Adjusted R² -0.00 -0.01
Annualised residual volatility 77.03% 76.94%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.28 (0.64) 0.18 (0.38)
Size (SMB) -0.88 (-1.36) -1.19 (-1.47)
Value (HML) 0.05 (0.08) 0.02 (0.03)
Profitability (RMW) NM -0.36 (-0.42)
Investment (CMA) NM -0.55 (-0.56)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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