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Sun Hung Kai & Co (0086) Fair Value & Analysis

Financial Services · HK · Market cap HK$7.9B

SH Sun Hung Kai & Co 0086 · HK
PriceHK$4.09
Fair ValueHK$8.24
Upside+101.5%
Quality75/100
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Weak Growth
Highly profitable · 42.8% net margin
Low debt · generates free cash flow
6.75% dividend yield
Ranks above peers (13/15)
Wide moat 70/100
Evidence: Medium Range HK$6.18 – HK$10.30 Share as image

Fair value as of: Aug 2, 2026

From 13 valuation models · updated 8 days ago

Fair value updated Aug 2, 2026, revised from HK$8.04 to HK$8.24 (+2.5%) since Jul 1, 2026. Share price +1.2% over the past month.

A strong business, screening 101% undervalued on our models.

What matters now

  • The rarer combination: high quality (75/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (HK$6.18). The market is more pessimistic than our downside scenario.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

HK$4.31 HK$1.72 Fair Value HK$8.24 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$1.72 – HK$4.31 · fair‑value band HK$6.18 – HK$10.30 · the HK$4.09 price screens below the HK$8.24 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Sun Hung Kai & Co (0086) currently trades at HK$4.09, while our model-based Fair Value estimate is HK$8.24, implying the stock looks roughly 101.5% undervalued today. The Quality Score stands at 75/100 (high quality), in the Financial Services 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, Sun Hung Kai & Co generated revenue of HK$3.7B at a net margin of 42.8%. Revenue grew 27.3% year over year. It earns a return on equity of 7.3%. Net debt stands at HK$6.5B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$6.18 (bear case) to HK$10.30 (bull case); at HK$4.09, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 6% below its 52-week high and 30% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -41% fair-value upside, at 101%, 0086 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$12.54 HK$21.15 HK$34.86 80
Residual Income HK$9.14 HK$9.58 HK$10.14 76
Rev-Margin DCF HK$6.66 HK$10.12 HK$14.56 74
All 13 models by family
DCF Models
Owner Earnings HK$10.28 HK$17.96 HK$30.63 31
5Y P/E Exit HK$8.98 HK$14.75 HK$21.17 38
10Y P/E Exit HK$10.14 HK$15.70 HK$23.21 35
Earnings-Based
Graham-Dodd HK$5.53 HK$24.69 HK$33.83 54
Lynch FV HK$6.42 HK$9.17 HK$11.92 50
Dividend Discount
Gordon GGM HK$2.29 HK$4.57 HK$6.91 70
DDM Multi-Stage HK$2.29 HK$3.95 HK$4.82 61
Multiples
P/E Multiple HK$7.93 HK$10.58 HK$13.22 63
P/B Multiple HK$10.37 HK$13.83 HK$17.29 55
Asset-Based
NCAV (Graham) HK$5.70 HK$7.64 HK$11.41 50
Growth DCF
Growth DCF HK$12.54 HK$21.15 HK$34.86 80
Rev-Margin DCF HK$6.66 HK$10.12 HK$14.56 74
Economic Profit
Residual Income HK$9.14 HK$9.58 HK$10.14 76

Widest divergence: DCF Models (HK$15.70) versus Dividend Discount (HK$3.95). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$3.7B
Revenue growth (YoY) +27.3%
Net margin 42.8%
Return on equity 7.3%
Free cash flow HK$2.1B FY2025
P/E ratio 5.0
More key figures
Operating margin 58.2%
EPS (TTM) HK$0.4500
Dividend yield 6.8%
EPS growth (YoY) +134%
Net debt HK$6.5B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 75/100

Of which business quality 70 · Market factors (momentum, volatility) 66

Profitability 39
Margins and returns on capital today
Quality Growth 74
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 57
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 68
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Sun Hung Kai & Co. Limited operates in the alternative investment and wealth management businesses in Hong Kong and the People's Republic of China. The company operates through Consumer Finance, Mortgage Loans, Investment Management, Alternative Solutions, and Group Management and Support segments.

Full company description

Sun Hung Kai & Co. Limited operates in the alternative investment and wealth management businesses in Hong Kong and the People's Republic of China. The company operates through Consumer Finance, Mortgage Loans, Investment Management, Alternative Solutions, and Group Management and Support segments. It offers unsecured and secured loans to individuals and small businesses through branches and online platforms; and first mortgage and second mortgage loans to property owners, as well as customized financing solutions to property investors. The company's investment portfolio consists of public markets; and alternatives solutions, including real estate, hedge funds, private credit, and private equity. In addition, it offers secretarial, financial consultancy, enterprise management, nominee, financing, money lending, asset management, property investment, securities trading, investment funds, consultancy and marketing planning, fund management, management consultancy, loan finance, and mortgage financing services. Further, the company provides consumer, small, and medium enterprises financing; mortgage loans and other financing; portfolio investments and provision of term loans, structured, and specialty financing; external fund solutions; and fund management service. Sun Hung Kai & Co. Limited was founded in 1969 and is headquartered in Causeway Bay, Hong Kong. Sun Hung Kai & Co. Limited operates as a subsidiary of Allied Properties (H.K.) Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sun Hung Kai & Co reported revenue of HK$5.4B in FY2025 versus HK$7.0B in FY2021, a compound −6.3%/yr. Reported net income was HK$1.6B in FY2025, compounding −13.3%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$5.4B
Latest YoY
+132.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+32.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.2%
Avg. growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.7%
Revenue −6.3%/yr
FY21 HK$7.0B
FY22 HK$2.3B
FY23 HK$2.2B
FY24 HK$2.3B
FY25 HK$5.4B
Net income −13.3%/yr
FY21 HK$2.8B
FY22 −HK$1.5B
FY23 −HK$471M
FY24 HK$378M
FY25 HK$1.6B
Character of growth · EPS growth decomposed (2014-2025) −6.6 % p.a.
Revenue per share −0.1 pp

of which total revenue −1.3 pp · buybacks/dilution +1.2 pp

EBIT margin −3.1 pp
Tax rate −1.3 pp
Residual (interest, one-offs) −2.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Sun Hung Kai & Co Fair Value". https://www.fairvalue-calculator.com/stock/0086

Peer Group

Credit Services · 331 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 76 · Top 25%
Fair Value upside +102% · Top 25%
Return on equity (TTM) 7% · Below median
Return on assets 5% · Above median
Net margin (TTM) 43% · Top 25%
Operating margin (TTM) 58% · Top 25%
Revenue growth 27% · Above median
Dividend yield (TTM) 6.8% · Top 25%
Debt / equity 0.21× · Lower than median

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 5.0× · Cheaper than 75% of peers
P/B 0.35× · Cheaper than 75% of peers
P/S (TTM) 2.11× · Cheaper than median
P/FCF 0.5× · Pricier than median
EV/EBITDA 2.9× · Cheaper than 75% of peers
PEG 0.51× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 37
FUTURE 100 · sector 39
PAST 29 · sector 32
HEALTH 89 · sector 58
DIVIDEND 100 · sector 51

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $348.97 $204.19 -41%
Mastercard Incorporated MA $537.70 $221.87 -59%
American Express Company AXP $358.44 $206.40 -42%
Bajaj Finance Limited BAJFINANCE ₹1,056 ₹397.61 -62%
Shriram Finance Limited SHRIRAMFIN ₹1,024 ₹553.83 -46%
Cholamandalam Investment and Finance Company CHOLAFIN ₹1,808 ₹796.52 -56%
Tata Capital Limited TATACAP ₹360.60 ₹229.85 -36%
Power Finance Corporation PFC ₹405.10 ₹810.20 +100%
Muthoot Finance Limited MUTHOOTFIN ₹3,129 ₹3,463 +11%
Indian Railway Finance Corporation IRFC ₹88.41 ₹69.72 -21%

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Frequently asked questions

Is Sun Hung Kai & Co (0086) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$8.24 versus a price of HK$4.09, about +101% (undervalued).
What is the fair value of 0086?
Our model-based fair value for Sun Hung Kai & Co is HK$8.24 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$4.09.
What is the quality score of 0086?
Sun Hung Kai & Co has a Quality Score of 75/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Sun Hung Kai & Co (0086)?
Sun Hung Kai & Co reported trailing-twelve-month revenue of about HK$3.7B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0086?
The net profit margin of Sun Hung Kai & Co is about 42.8%, meaning it keeps roughly 42.8% of revenue as net income. Based on the latest reported figures.
Does Sun Hung Kai & Co pay a dividend?
Sun Hung Kai & Co currently shows a dividend yield of about 6.75% relative to its recent price (as of Aug 2, 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.

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