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2. Company Fundamentals
2.3 Management
| Role |
Metric |
| Consensus Rating |
N/A |
2.4 Return
| Metric |
Value |
| Expected Return (Ann.)* |
-20.96% |
| Risk / Std Dev (Ann.)* |
32.82% |
| 1-Year Price Return* |
-24.38% |
Latest Market Data (as of 2026-08-14, Hong Kong time):
| Metric |
Value |
| Last Price |
HK$440 |
| 52-Week Range |
HK$411 – HK$683 |
| Observation Count |
245 trading days |
The return and risk statistics use daily adjusted closes from the retrieved one-year price series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.
DuPont Model Analysis
The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:
ROE = Net Margin × Asset Turnover × Equity Multiplier
The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in HK$. 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 |
FY2025 |
FY2024 |
| Revenue |
Reported revenue |
HK$751.77B |
HK$660.26B |
| Net income |
Reported net income |
HK$224.84B |
HK$194.07B |
| Total assets |
Year-end reported balance |
HK$2,038.99B |
HK$1,780.99B |
| Shareholders’ equity |
Year-end reported balance |
HK$1,154.15B |
HK$973.55B |
| Net margin |
Net income ÷ revenue |
29.91% |
29.39% |
| Asset turnover |
Revenue ÷ total assets |
0.3687x |
0.3707x |
| Equity multiplier |
Total assets ÷ shareholders’ equity |
1.7667x |
1.8294x |
| ROE |
Net margin × asset turnover × equity multiplier |
19.48% |
19.93% |
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$751.77B |
| Prior annual revenue |
HK$660.26B |
| EBIT |
HK$290.70B |
| Tax rate |
17.11% |
| NOPAT = EBIT × (1 − tax rate) |
HK$240.95B |
| Forecast start-growth basis |
13.86% |
| Forecast policy |
latest reported annual revenue growth, bounded to -10.00% / 15.00% |
Step 2 — Calculate FCFF
| Current FCFF building block |
Value |
| NOPAT |
HK$240.95B |
| Add: depreciation & amortisation |
HK$66.03B |
| Less: capital expenditure |
-HK$112.88B |
| Less/(add): working-capital cash-flow movement |
HK$16.48B |
| Current unlevered FCFF |
HK$210.59B |
Explicit FCFF forecast
| Forecast year |
Revenue growth |
NOPAT |
D&A |
Capex |
Change in NWC |
FCFF |
Present value |
| 1 |
13.86% |
HK$274.35B |
HK$75.18B |
-HK$128.53B |
HK$18.77B |
HK$239.77B |
HK$230.58B |
| 2 |
11.02% |
HK$304.58B |
HK$83.46B |
-HK$127.88B |
HK$20.84B |
HK$281.00B |
HK$249.91B |
| 3 |
8.18% |
HK$329.50B |
HK$90.29B |
-HK$122.33B |
HK$22.54B |
HK$320.00B |
HK$263.21B |
| 4 |
5.34% |
HK$347.09B |
HK$95.11B |
-HK$111.99B |
HK$23.74B |
HK$353.96B |
HK$269.25B |
| 5 |
2.50% |
HK$355.77B |
HK$97.49B |
-HK$97.49B |
HK$24.34B |
HK$380.11B |
HK$267.40B |
Step 3 — Determine the Discount Rate (WACC)
| WACC input |
Value |
| Risk-free rate |
4.71% |
| Equity risk premium assumption |
5.50% |
| Beta |
0.74 |
| Cost of equity |
8.81% |
| Pre-tax cost of debt |
2.85% |
| WACC |
8.13% |
| WACC validation |
within standard range |
Step 4 — Estimate Terminal Value
| Terminal-value input |
Value |
| Perpetuity growth rate |
2.50% |
| Terminal value |
HK$6,921.26B |
| Implied terminal EV / EBITDA |
13.14x |
| Terminal value as % of enterprise value |
78.53% |
Step 5 — Discount Cash Flows to Enterprise Value
| Enterprise-value component |
Value |
| Present value of explicit FCFF |
HK$1,280.35B |
| Present value of terminal value |
HK$4,682.42B |
| Indicated enterprise value |
HK$5,962.78B |
| 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$5,962.78B |
| Less: gross interest-bearing debt |
HK$471.83B |
| Add: cash and equivalents |
HK$426.75B |
| Add: affiliate investments |
HK$0.00 |
| Less: minority interests |
HK$86.91B |
| Indicated common equity value |
HK$5,830.79B |
Step 7 — Calculate Indicative Value Per Share
| Per-share output |
Value |
| Shares used |
9,244,000,000.00 |
| Share-count basis |
reported diluted weighted-average shares |
| Current market price |
HK$442.40 |
| DCF indicative value per share |
HK$630.76 |
| Indicative value vs. market price |
42.58% |
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% |
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 16:33:32.905386 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
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 |
-34.30% |
-33.00% |
| Adjusted R² |
0.18 |
0.17 |
| Annualised residual volatility |
27.91% |
27.88% |
| Factor loading (t-statistic) |
FF3 |
FF5 |
| Market excess return (Mkt-RF) |
1.03 (6.50) |
1.01 (5.84) |
| Size (SMB) |
0.26 (1.09) |
0.15 (0.52) |
| Value (HML) |
0.14 (0.64) |
0.11 (0.43) |
| Profitability (RMW) |
NM |
-0.20 (-0.62) |
| Investment (CMA) |
NM |
-0.15 (-0.44) |
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.