Loading verified market, valuation, and statement data.
2. Company Fundamentals
2.3 Management
| Role |
Metric |
| Consensus Rating |
N/A |
2.4 Return
| Metric |
Value |
| Expected Return (Ann.) |
53.22% |
| Risk / Std Dev (Ann.) |
46.27% |
Price Snapshot:
| Metric |
Value |
| Last Price |
123.000 HKD |
| Day Change |
-5.900 (-4.80%) |
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$1,023.67B |
HK$996.35B |
| Net income |
Reported net income |
HK$105.90B |
HK$129.47B |
| Total assets |
Year-end reported balance |
HK$1,909.57B |
HK$1,804.23B |
| Shareholders’ equity |
Year-end reported balance |
HK$1,060.89B |
HK$1,009.86B |
| Net margin |
Net income ÷ revenue |
10.35% |
12.99% |
| Asset turnover |
Revenue ÷ total assets |
0.5361x |
0.5522x |
| Equity multiplier |
Total assets ÷ shareholders’ equity |
1.8000x |
1.7866x |
| ROE |
Net margin × asset turnover × equity multiplier |
9.98% |
12.82% |
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$1,023.67B |
| Prior annual revenue |
HK$996.35B |
| EBIT |
HK$139.18B |
| Tax rate |
23.22% |
| NOPAT = EBIT × (1 − tax rate) |
HK$106.86B |
| Forecast start-growth basis |
2.74% |
| Forecast policy |
latest reported annual revenue growth, bounded to -10.00% / 15.00% |
Step 2 — Calculate FCFF
| Current FCFF building block |
Value |
| NOPAT |
HK$106.86B |
| Add: depreciation & amortisation |
HK$47.12B |
| Less: capital expenditure |
-HK$126.94B |
| Less/(add): working-capital cash-flow movement |
-HK$22.55B |
| Current unlevered FCFF |
HK$4.50B |
Explicit FCFF forecast
| Forecast year |
Revenue growth |
NOPAT |
D&A |
Capex |
Change in NWC |
FCFF |
Present value |
| 1 |
2.74% |
HK$109.79B |
HK$48.41B |
-HK$130.42B |
-HK$23.17B |
HK$4.62B |
HK$4.46B |
| 2 |
2.68% |
HK$112.74B |
HK$49.71B |
-HK$112.86B |
-HK$23.79B |
HK$25.79B |
HK$23.29B |
| 3 |
2.62% |
HK$115.69B |
HK$51.01B |
-HK$94.22B |
-HK$24.41B |
HK$48.07B |
HK$40.56B |
| 4 |
2.56% |
HK$118.65B |
HK$52.32B |
-HK$74.47B |
-HK$25.04B |
HK$71.46B |
HK$56.33B |
| 5 |
2.50% |
HK$121.62B |
HK$53.63B |
-HK$53.63B |
-HK$25.66B |
HK$95.96B |
HK$70.67B |
Step 3 — Determine the Discount Rate (WACC)
| WACC input |
Value |
| Risk-free rate |
4.71% |
| Equity risk premium assumption |
5.50% |
| Beta |
0.51 |
| Cost of equity |
7.52% |
| Pre-tax cost of debt |
3.70% |
| WACC |
7.03% |
| WACC validation |
within standard range |
Step 4 — Estimate Terminal Value
| Terminal-value input |
Value |
| Perpetuity growth rate |
2.50% |
| Terminal value |
HK$2,169.99B |
| Implied terminal EV / EBITDA |
10.23x |
| Terminal value as % of enterprise value |
88.78% |
Step 5 — Discount Cash Flows to Enterprise Value
| Enterprise-value component |
Value |
| Present value of explicit FCFF |
HK$195.33B |
| Present value of terminal value |
HK$1,544.82B |
| Indicated enterprise value |
HK$1,740.15B |
| 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$1,740.15B |
| Less: gross interest-bearing debt |
HK$281.72B |
| Add: cash and equivalents |
HK$316.89B |
| Add: affiliate investments |
HK$0.00 |
| Less: minority interests |
HK$65.38B |
| Indicated common equity value |
HK$1,709.93B |
Step 7 — Calculate Indicative Value Per Share
| Per-share output |
Value |
| Shares used |
19,235,000,000.00 |
| Share-count basis |
reported diluted weighted-average shares |
| Current market price |
HK$126.70 |
| DCF indicative value per share |
HK$88.90 |
| Indicative value vs. market price |
-29.84% |
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% |
within review band |
2.6 Investor-Style Research Screen
| Educational screen |
Result |
| Buffett-inspired cash-quality checks |
2/4 evidenced checks |
| Lynch-inspired balance-and-growth checks |
2/4 evidenced checks |
Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:20:02.769204 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 |
-35.17% |
-32.75% |
| Adjusted R² |
0.23 |
0.23 |
| Annualised residual volatility |
42.77% |
42.38% |
| Factor loading (t-statistic) |
FF3 |
FF5 |
| Market excess return (Mkt-RF) |
1.75 (7.19) |
1.80 (6.89) |
| Size (SMB) |
0.98 (2.74) |
1.00 (2.24) |
| Value (HML) |
0.90 (2.66) |
0.59 (1.57) |
| Profitability (RMW) |
NM |
-0.87 (-1.82) |
| Investment (CMA) |
NM |
0.30 (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.