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Kwoon Chung Bus Holdings (0306) Fair Value & Analysis

Industrials · HK · Market cap HK$1.3B

KC Kwoon Chung Bus Holdings 0306 · HK
PriceHK$2.74
Fair ValueHK$6.75
Upside+146.8%
Quality54/100
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Healthy Growth
Thin margins · 7.0% net margin
Moderate debt · generates free cash flow
2.88% dividend yield
Ranks above peers (11/14)
Narrow moat 40/100
Evidence: High Range HK$4.09 – HK$10.86 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 9 days ago

Fair value updated Aug 2, 2026, revised from HK$6.99 to HK$6.75 (−3.4%) since Jul 1, 2026. Share price −3.0% over the past month.

A solid business, screening 147% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$4.09). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (HK$4.09 to HK$10.86). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$3.64 HK$1.21 Fair Value HK$6.75 Aug 2019 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$1.21 – HK$3.64 · fair‑value band HK$4.09 – HK$10.86 · the HK$2.74 price screens below the HK$6.75 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Kwoon Chung Bus Holdings (0306) currently trades at HK$2.74, while our model-based Fair Value estimate is HK$6.75, implying the stock looks roughly 146.8% undervalued today. The Quality Score stands at 54/100 (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: high), always confirm before acting.

Over the trailing twelve months, Kwoon Chung Bus Holdings generated revenue of HK$2.7B at a net margin of 7.0%. Revenue grew 13.1% year over year. It earns a return on equity of 9.6%. Net debt stands at HK$1.0B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$4.09 (bear case) to HK$10.86 (bull case); at HK$2.74, 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 10% below its 52-week high and 57% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at 147%, 0306 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$1.87 HK$3.09 HK$4.59 80
Residual Income HK$4.00 HK$4.39 HK$6.01 76
Rev-Margin DCF HK$3.40 HK$6.49 HK$9.99 74
All 26 models by family
DCF Models
FCF DCF HK$1.84 HK$3.23 HK$5.06 38
Owner Earnings HK$3.73 HK$5.92 HK$8.81 31
5Y Revenue Exit HK$3.40 HK$6.52 HK$10.50 39
5Y EBITDA Exit HK$6.41 HK$12.10 HK$18.74 41
5Y P/E Exit HK$4.11 HK$7.84 HK$11.73 38
10Y Revenue Exit HK$2.55 HK$5.07 HK$8.44 36
10Y EBITDA Exit HK$4.46 HK$8.60 HK$14.12 37
10Y P/E Exit HK$3.12 HK$5.91 HK$9.29 35
Earnings-Based
Graham-Dodd HK$3.46 HK$10.26 HK$13.59 54
Lynch FV HK$2.16 HK$3.09 HK$4.02 50
PEG = 1.0 HK$2.16 HK$3.09 HK$4.02 46
EPV HK$3.49 HK$4.16 HK$4.72 59
Dividend Discount
Gordon GGM HK$0.1600 HK$0.2800 HK$0.3900 70
DDM Multi-Stage HK$0.1600 HK$0.2400 HK$0.3000 61
Multiples
P/E Multiple HK$8.00 HK$10.67 HK$13.34 63
P/S Multiple HK$6.48 HK$8.64 HK$10.80 58
P/B Multiple HK$6.48 HK$8.64 HK$10.80 55
EV/EBIT HK$7.27 HK$10.17 HK$13.06 53
EV/EBITDA HK$10.96 HK$15.08 HK$19.21 54
EV/Revenue HK$4.79 HK$7.44 HK$10.10 43
Asset-Based
NCAV (Graham) HK$2.40 HK$3.22 HK$4.80 50
Growth DCF
Growth DCF HK$1.87 HK$3.09 HK$4.59 80
Rev-Margin DCF HK$3.40 HK$6.49 HK$9.99 74
Economic Profit
Residual Income HK$4.00 HK$4.39 HK$6.01 76
ROIC Compounder HK$3.49 HK$4.16 HK$4.72 72
Growth Earnings
Growth-Adj P/E HK$6.51 HK$9.30 HK$12.10 68

Widest divergence: Growth Earnings (HK$9.30) versus Dividend Discount (HK$0.2400). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$2.7B
Revenue growth (YoY) +13.1%
Net margin 7.0%
Return on equity 9.6%
Free cash flow HK$167M FY2025
P/E ratio 5.6
More key figures
Operating margin 4.6%
EPS (TTM) HK$0.3900
Dividend yield 2.9%
EPS growth (YoY) +949%
Net debt HK$1.0B FY2026

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

Quality Score breakdown

Overall quality 54/100

Of which business quality 52 · Market factors (momentum, volatility) 73

Profitability 38
Margins and returns on capital today
Quality Growth 60
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 71
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 64
Price trend over the last 3–12 months (market factor)
52W Momentum 84
Distance to the 52-week high (market factor)
Net Issuance 75
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

Kwoon Chung Bus Holdings Limited, an investment holding company, provides bus and bus-related services in Hong Kong, Macau, and Mainland China. It operates through five segments: Non-Franchised Bus, Limousine, Franchised Bus and Public Light Bus (PLB), Chinese Mainland Business, and Others.

Full company description

Kwoon Chung Bus Holdings Limited, an investment holding company, provides bus and bus-related services in Hong Kong, Macau, and Mainland China. It operates through five segments: Non-Franchised Bus, Limousine, Franchised Bus and Public Light Bus (PLB), Chinese Mainland Business, and Others. The company offers non-franchised public bus services, such as local transport services, including student, employee, resident, tour, and contract hire services; and cross-boundary transport services between Mainland China and Hong Kong. It also provides hotel and tourism, limousine hire, autonomous transportation, franchised bus and public light bus, motor vehicles repair and maintenance, and travel-related services. In addition, the company engages in holding of properties; and development and management of a scenic area. As of March 31, 2025, it operates approximately 1,220 non-franchised public buses; and 492 limousines. Kwoon Chung Bus Holdings Limited was founded in 1948 and is headquartered in Chai Wan, Hong Kong. Kwoon Chung Bus Holdings Limited is a subsidiary of Basic Faith Company Limited.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Kwoon Chung Bus Holdings reported revenue of HK$2.8B in FY2026 versus HK$1.2B in FY2022, a compound +23.6%/yr. Reported net income was HK$242M in FY2026.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
HK$2.8B
Latest YoY
+10.9%
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.
+28.8%
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.
+20.9%
Avg. growth/yr (26Y) 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.
+4.7%
Revenue +23.6%/yr
FY22 HK$1.2B
FY23 HK$1.3B
FY24 HK$2.1B
FY25 HK$2.5B
FY26 HK$2.8B
Net income
FY22 −HK$140M
FY23 −HK$131M
FY24 HK$32.1M
FY25 HK$127M
FY26 HK$242M
Character of growth · EPS growth decomposed (2015-2026) −10.3 % p.a.
Revenue per share +0.0 pp

of which total revenue +0.4 pp · buybacks/dilution −0.4 pp

EBIT margin −3.6 pp
Tax rate +0.3 pp
Residual (interest, one-offs) −6.9 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). "Kwoon Chung Bus Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0306

Peer Group

Railroads · 111 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 54 · Above median
Fair Value upside +147% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 3% · Below median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 5% · Below median
Revenue growth 13% · Top 25%
Dividend yield (TTM) 2.9% · Above median
Debt / equity 0.64× · Higher than median

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 5.6× · Cheaper than 75% of peers
P/B 0.59× · Cheaper than 75% of peers
P/S (TTM) 0.50× · Cheaper than 75% of peers
P/FCF 1.0× · Cheaper than median
EV/EBITDA 4.4× · Cheaper than median

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 28
FUTURE 66 · sector 20
PAST 39 · sector 31
HEALTH 68 · sector 88
DIVIDEND 58 · sector 41

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 Railroads stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
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Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is Kwoon Chung Bus Holdings (0306) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$6.75 versus a price of HK$2.74, about +147% (undervalued).
What is the fair value of 0306?
Our model-based fair value for Kwoon Chung Bus Holdings is HK$6.75 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$2.74.
What is the quality score of 0306?
Kwoon Chung Bus Holdings has a Quality Score of 54/100. 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 Kwoon Chung Bus Holdings (0306)?
Kwoon Chung Bus Holdings reported trailing-twelve-month revenue of about HK$2.7B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0306?
The net profit margin of Kwoon Chung Bus Holdings is about 7.0%, meaning it keeps roughly 7.0% of revenue as net income. Based on the latest reported figures.
Does Kwoon Chung Bus Holdings pay a dividend?
Kwoon Chung Bus Holdings currently shows a dividend yield of about 2.88% 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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