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2. Company Fundamentals
2.3 Management
| Role |
Metric |
| Consensus Rating |
N/A |
2.4 Return
| Metric |
Value |
| Expected Return (Ann.) |
N/A |
| Risk / Std Dev (Ann.) |
N/A |
Price Snapshot:
| Metric |
Value |
| Last Price |
N/A |
| Day Change |
N/A (N/A%) |
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$36.75B |
HK$33.42B |
| Net income |
Reported net income |
HK$7.71B |
HK$4.09B |
| Total assets |
Year-end reported balance |
HK$90.59B |
HK$91.84B |
| Shareholders’ equity |
Year-end reported balance |
HK$8.66B |
HK$5.88B |
| Net margin |
Net income ÷ revenue |
20.98% |
12.24% |
| Asset turnover |
Revenue ÷ total assets |
0.4057x |
0.3639x |
| Equity multiplier |
Total assets ÷ shareholders’ equity |
10.4627x |
15.6269x |
| ROE |
Net margin × asset turnover × equity multiplier |
89.06% |
69.59% |
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$36.75B |
| Prior annual revenue |
HK$33.42B |
| EBIT |
HK$11.73B |
| Tax rate |
14.09% |
| NOPAT = EBIT × (1 − tax rate) |
HK$10.08B |
| Forecast start-growth basis |
9.95% |
| Forecast policy |
latest reported annual revenue growth, bounded to -10.00% / 15.00% |
Step 2 — Calculate FCFF
| Current FCFF building block |
Value |
| NOPAT |
HK$10.08B |
| Add: depreciation & amortisation |
HK$5.17B |
| Less: capital expenditure |
-HK$1.86B |
| Less/(add): working-capital cash-flow movement |
-HK$1.98B |
| Current unlevered FCFF |
HK$11.41B |
Explicit FCFF forecast
| Forecast year |
Revenue growth |
NOPAT |
D&A |
Capex |
Change in NWC |
FCFF |
Present value |
| 1 |
9.95% |
HK$11.08B |
HK$5.68B |
-HK$2.04B |
-HK$2.17B |
HK$12.54B |
HK$11.96B |
| 2 |
8.09% |
HK$11.98B |
HK$6.14B |
-HK$3.19B |
-HK$2.35B |
HK$12.58B |
HK$10.91B |
| 3 |
6.23% |
HK$12.72B |
HK$6.52B |
-HK$4.43B |
-HK$2.50B |
HK$12.31B |
HK$9.72B |
| 4 |
4.36% |
HK$13.28B |
HK$6.81B |
-HK$5.72B |
-HK$2.61B |
HK$11.76B |
HK$8.44B |
| 5 |
2.50% |
HK$13.61B |
HK$6.98B |
-HK$6.98B |
-HK$2.67B |
HK$10.94B |
HK$7.14B |
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 |
4.80% |
| WACC |
9.94% |
| WACC validation |
within standard range |
Step 4 — Estimate Terminal Value
| Terminal-value input |
Value |
| Perpetuity growth rate |
2.50% |
| Terminal value |
HK$150.77B |
| Implied terminal EV / EBITDA |
6.61x |
| Terminal value as % of enterprise value |
66.09% |
Step 5 — Discount Cash Flows to Enterprise Value
| Enterprise-value component |
Value |
| Present value of explicit FCFF |
HK$48.18B |
| Present value of terminal value |
HK$93.89B |
| Indicated enterprise value |
HK$142.07B |
| 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$142.07B |
| Less: gross interest-bearing debt |
HK$54.60B |
| Add: cash and equivalents |
HK$9.13B |
| Add: affiliate investments |
HK$0.00 |
| Less: minority interests |
HK$0.00 |
| Indicated common equity value |
HK$96.59B |
Step 7 — Calculate Indicative Value Per Share
| Per-share output |
Value |
| Shares used |
535,177,984.00 |
| Share-count basis |
reported shares outstanding; option/RSU dilution data not separately available |
| Current market price |
HK$1,850.00 |
| DCF indicative value per share |
HK$180.48 |
| Indicative value vs. market price |
-90.24% |
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 |
3/4 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 17:09:07.929782 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 verified adjusted-close issuer series is available for factor regression. 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.