0038 (0038) Fair Value & Analysis

Industrials · Market cap HK$7.5B

0 0038 0038 · HK

PriceHK$6.69

Fair ValueHK$15.01

Upside+124.4%

Quality50/100

Evidence: Medium Range HK$10.74 – HK$19.04

Fair value as of: Jul 1, 2026

From 25 valuation models · updated today

Share price −16.8% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$6.38 – HK$10.12 · fair‑value band HK$10.74 – HK$19.04 · the HK$6.69 price screens below the HK$15.01 fair value. As of Jul 1, 2026.

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Analysis

0038 (0038) currently trades at HK$6.69, while our model-based Fair Value estimate is HK$15.01 — implying the stock looks roughly 124.4% undervalued today. We read business quality at 50/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium) — always confirm before acting.

Over the trailing twelve months, 0038 generated revenue of HK$10.9B at a net margin of 7.7%. Revenue grew 2.5% year over year. It earns a return on equity of 10.4%. Net debt stands at HK$1.1B. Fundamentals as of Jul 1, 2026

Key figures & financial health

Revenue (TTM) HK$10.9B

Revenue growth (YoY) +2.5%

Net margin 7.7%

Return on equity 10.4%

Free cash flow HK$840M FY2025

P/E ratio 8.1

More key figures

Operating margin 12.8%

EPS (TTM) HK$0.8153

Dividend yield 3.9%

EPS growth (YoY) +6.2%

Net debt HK$1.1B FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 1, 2026. TTM = trailing twelve months.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

0038 reported revenue of HK$10.8B in FY2025 versus HK$9.3B in FY2021, a compound +3.8%/yr. Reported net income was HK$812M in FY2025, compounding +17.0%/yr from FY2021.

Revenue +3.8%/yr

FY21 HK$9.3B

FY22 HK$12.6B

FY23 HK$11.5B

FY24 HK$11.9B

FY25 HK$10.8B

Net income +17.0%/yr

FY21 HK$433M

FY22 HK$681M

FY23 HK$997M

FY24 HK$922M

FY25 HK$812M

Is 0038 fairly valued? → Check now

Similar stocks

6 more Farm & Heavy Construction Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 1, 2026).

Stock	Price	Fair Value	vs Fair Value
Caterpillar Inc CAT	$1,022	$307.83	-70%
Deere & Company DE	$598.59	$186.23	-69%
Sany Heavy Industry Co SNHIY	$11.25	$2.82	-75%
AB Volvo (publ), VLVLY	$33.35	$35.41	+6%
PACCAR Inc PCAR	$120.12	$94.80	-21%
Toyota Industries Corporation TYIDF	$128.00	$89.56	-30%

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Frequently asked questions

Is 0038 (0038) undervalued?

As of Jul 1, 2026, our model estimates a fair value of HK$15.01 versus a price of HK$6.69 — about +124% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 0038?

Our model-based fair value for 0038 is HK$15.01 (as of Jul 1, 2026), built from audited fundamentals. The current price is HK$6.69.

What is the quality score of 0038?

0038 has a Quality Score of 50/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 0038 (0038)?

0038 reported trailing-twelve-month revenue of about HK$10.9B (latest available figure, as of Jul 1, 2026).

What is the net profit margin of 0038?

The net profit margin of 0038 is about 7.7%, meaning it keeps roughly 7.7% of revenue as net income. Based on the latest reported figures.

Does 0038 pay a dividend?

0038 currently shows a dividend yield of about 3.91% relative to its recent price (as of Jul 1, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.