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HK Equities · Finance research note

HKEX 6865 - Flat Glass Group Co., 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.) N/A
Risk / Std Dev (Ann.) N/A

Price Snapshot:

Metric Value
Last Price 8.910 HKD
Day Change -0.450 (-5.06%)

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$15.57B HK$18.68B
Net income Reported net income HK$980.57M HK$1.01B
Total assets Year-end reported balance HK$42.38B HK$42.92B
Shareholders’ equity Year-end reported balance HK$22.52B HK$21.70B
Net margin Net income ÷ revenue 6.30% 5.38%
Asset turnover Revenue ÷ total assets 0.3673x 0.4353x
Equity multiplier Total assets ÷ shareholders’ equity 1.8825x 1.9780x
ROE Net margin × asset turnover × equity multiplier 4.36% 4.64%

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

FCFF DCF exception: Missing verified DCF inputs: D&A, working-capital movement. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price HK$7.30
Market capitalisation HK$16.92B
Revenue HK$15.57B
EBIT HK$1.59B
Reported free cash flow HK$31.58M
FCF yield 0.19%
Net debt / EBITDA 5.79x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:10:46.882967 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. 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 -44.69% -48.94%
Adjusted R² 0.13 0.14
Annualised residual volatility 45.73% 45.24%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 1.47 (5.64) 1.68 (6.03)
Size (SMB) 0.36 (0.93) 0.96 (2.02)
Value (HML) 0.52 (1.45) 0.45 (1.13)
Profitability (RMW) NM 0.34 (0.66)
Investment (CMA) NM 1.16 (2.03)

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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