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HE Group (0296) Fair Value & Analysis

Industrials · MY · Market cap 260M MYR

HG HE Group 0296 · KLSE
Price0.6600 MYR
Fair Value0.4400 MYR
Upside-33.3%
Quality61/100
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Mixed Growth
Thin margins · 9.1% net margin
Low debt · generates free cash flow
1.77% dividend yield
Ranks above peers (9/13)
Moderate moat 56/100
Evidence: High Range 0.3200 MYR – 0.6000 MYR Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Share price +11.9% over the past month.

A solid business, but screening 33% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (0.6000 MYR). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (0.3200 MYR to 0.6000 MYR) leaves room in how you read the outcome.
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Price vs Fair Value (3 years)

0.7298 MYR 0.2002 MYR Fair Value 0.4400 MYR Jan 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

30‑month range 0.2002 MYR – 0.7298 MYR · fair‑value band 0.3200 MYR – 0.6000 MYR · the 0.6600 MYR price screens above the 0.4400 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

HE Group (0296) currently trades at 0.6600 MYR, while our model-based Fair Value estimate is 0.4400 MYR, implying the stock looks roughly 33.3% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, HE Group generated revenue of 118M MYR at a net margin of 9.1%. Revenue declined 16.8% year over year. It earns a return on equity of 16.0%. Net debt stands at 1.9M MYR. Fundamentals as of Jul 12, 2026

Our scenario range runs from 0.3200 MYR (bear case) to 0.6000 MYR (bull case); at 0.6600 MYR, the current price sits above 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 near its 52-week high and 166% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at -33%, 0296 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 0.2600 MYR 0.3200 MYR 0.3800 MYR 80
Residual Income 0.1500 MYR 0.1800 MYR 0.3600 MYR 76
Rev-Margin DCF 0.3200 MYR 0.4500 MYR 0.6000 MYR 74
All 26 models by family
DCF Models
FCF DCF 0.2600 MYR 0.3200 MYR 0.4000 MYR 38
Owner Earnings 0.3700 MYR 0.4800 MYR 0.6200 MYR 31
5Y Revenue Exit 0.3200 MYR 0.4500 MYR 0.6200 MYR 39
5Y EBITDA Exit 0.3700 MYR 0.5400 MYR 0.7400 MYR 41
5Y P/E Exit 0.4000 MYR 0.6100 MYR 0.8400 MYR 38
10Y Revenue Exit 0.2900 MYR 0.3900 MYR 0.5400 MYR 36
10Y EBITDA Exit 0.3200 MYR 0.4400 MYR 0.6200 MYR 37
10Y P/E Exit 0.3400 MYR 0.4900 MYR 0.6800 MYR 35
Earnings-Based
Graham-Dodd 0.1700 MYR 0.6400 MYR 0.8700 MYR 54
Lynch FV 0.1500 MYR 0.2200 MYR 0.2900 MYR 50
PEG = 1.0 0.1500 MYR 0.2200 MYR 0.2900 MYR 46
EPV 0.3400 MYR 0.3600 MYR 0.3800 MYR 59
Dividend Discount
Gordon GGM 0.0300 MYR 0.0500 MYR 0.0700 MYR 70
DDM Multi-Stage 0.0300 MYR 0.0500 MYR 0.0600 MYR 61
Multiples
P/E Multiple 0.4100 MYR 0.5500 MYR 0.6900 MYR 63
P/S Multiple 0.2500 MYR 0.3400 MYR 0.4200 MYR 58
P/B Multiple 0.3200 MYR 0.4300 MYR 0.5300 MYR 55
EV/EBIT 0.6200 MYR 0.7800 MYR 0.9400 MYR 53
EV/EBITDA 0.4800 MYR 0.5900 MYR 0.7000 MYR 54
EV/Revenue 0.3800 MYR 0.4800 MYR 0.5800 MYR 43
Asset-Based
NCAV (Graham) 0.0800 MYR 0.1100 MYR 0.1600 MYR 50
Growth DCF
Growth DCF 0.2600 MYR 0.3200 MYR 0.3800 MYR 80
Rev-Margin DCF 0.3200 MYR 0.4500 MYR 0.6000 MYR 74
Economic Profit
Residual Income 0.1500 MYR 0.1800 MYR 0.3600 MYR 76
ROIC Compounder 0.3500 MYR 0.3800 MYR 0.4000 MYR 72
Growth Earnings
Growth-Adj P/E 0.2900 MYR 0.4200 MYR 0.5400 MYR 68

Widest divergence: Multiples (0.4800 MYR) versus Dividend Discount (0.0500 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 118M MYR
Revenue growth (YoY) -16.8%
Net margin 9.1%
Return on equity 16.0%
Free cash flow 6.2M MYR FY2025
P/E ratio 29.5
More key figures
Operating margin 13.0%
EPS (TTM) 0.0200 MYR
Dividend yield 1.8%
EPS growth (YoY) -11.3%
Net debt 1.9M MYR FY2022

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 62 · Market factors (momentum, volatility) 79

Profitability 58
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 99
Balance sheet, leverage, solvency risk
Investment 53
Disciplined investing over empire-building
Low Volatility 31
Calm price path (market factor)
Momentum 99
Price trend over the last 3–12 months (market factor)
52W Momentum 100
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

HE Group Berhad, through its subsidiary, Hexatech Engineering Sdn. Bhd., operates as an electrical engineering service provider in Malaysia.

Full company description

HE Group Berhad, through its subsidiary, Hexatech Engineering Sdn. Bhd., operates as an electrical engineering service provider in Malaysia. The company offers design, supply, installation, testing, and commissioning of high voltage, medium voltage, low voltage, and extra low voltage power distribution systems; and additional services, including other building systems and works, electrical equipment hook-up and retrofitting solutions, and trading of electrical products, including power cables, metering panels, and various power conditioning systems, as well as other related electrical products. It also provides mechanical systems, control, and instrumentation solutions, as well as civil, structural, and architectural works. In addition, the company is involved in connection of plant and machinery, electrical equipment, and components to a power source. It serves semiconductors, medical devices, and electronic products industries. HE Group Berhad was incorporated in 1995 and is headquartered in Puchong, Malaysia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HE Group reported revenue of 123M MYR in FY2025 versus 100M MYR in FY2021, a compound +5.3%/yr. Reported net income was 11.0M MYR in FY2025, compounding +27.8%/yr from FY2021.

Growth Quality 84/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
123M MYR
Latest YoY
−40.4%
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.
+4.6%
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.
+31.5%
Revenue +5.3%/yr
FY21 100M MYR
FY22 108M MYR
FY23 204M MYR
FY24 207M MYR
FY25 123M MYR
Net income +27.8%/yr
FY21 4.1M MYR
FY22 6.2M MYR
FY23 11.0M MYR
FY24 13.7M MYR
FY25 11.0M MYR

0296 screens 33% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "HE Group Fair Value". https://www.fairvalue-calculator.com/stock/0296

Peer Group

Engineering & Construction · 839 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 61 · Top 25%
Fair Value upside −33% · Below median
Return on equity (TTM) 16% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 13% · Top 25%
Revenue growth -17% · Bottom 25%
Dividend yield (TTM) 1.8% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 29.5× · Pricier than median
P/B 0.90× · Cheaper than median
P/S (TTM) 0.54× · Cheaper than median
P/FCF 10.2× · Pricier 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 0 · sector 16
FUTURE 0 · sector 17
PAST 64 · sector 26
HEALTH 100 · sector 94
DIVIDEND 35 · sector 33

VALUE 0: the price sits above our fair-value range.

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is HE Group (0296) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of 0.4400 MYR versus a price of 0.6600 MYR, about −33% (overvalued).
What is the fair value of 0296?
Our model-based fair value for HE Group is 0.4400 MYR (as of Jul 12, 2026), built from audited fundamentals. The current price is 0.6600 MYR.
What is the quality score of 0296?
HE Group has a Quality Score of 61/100. 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 HE Group (0296)?
HE Group reported trailing-twelve-month revenue of about 118M MYR (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 0296?
The net profit margin of HE Group is about 9.1%, meaning it keeps roughly 9.1% of revenue as net income. Based on the latest reported figures.
Does HE Group pay a dividend?
HE Group currently shows a dividend yield of about 2.15% relative to its recent price (as of Jul 12, 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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