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Huabao International Holdings (0336) Fair Value & Analysis

Basic Materials · HK · Market cap HK$9.7B

HI Huabao International Holdings 0336 · HK
PriceHK$3.17
Fair ValueHK$4.90
Upside+54.5%
Quality70/100
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Weak Growth
Highly profitable · 33.2% net margin
Low debt · generates free cash flow
Ranks above peers (12/13)
Wide moat 69/100
Evidence: Medium Range HK$3.96 – HK$5.85 Share as image

Fair value as of: Aug 2, 2026

From 9 valuation models · updated 8 days ago

Fair value updated Aug 2, 2026, revised from HK$2.93 to HK$4.90 (+67.1%) since Jul 1, 2026. Share price +4.6% over the past month.

A solid business, screening 54% undervalued on our models.

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (HK$3.96). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$21.38 HK$1.95 Fair Value HK$4.90 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$1.95 – HK$21.38 · fair‑value band HK$3.96 – HK$5.85 · the HK$3.17 price screens below the HK$4.90 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Huabao International Holdings (0336) currently trades at HK$3.17, while our model-based Fair Value estimate is HK$4.90, implying the stock looks roughly 54.5% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Basic Materials 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, Huabao International Holdings generated revenue of HK$4.3B at a net margin of 33.2%. Revenue grew 27.3% year over year. It earns a return on equity of 10.9%. The balance sheet holds a net cash position of HK$3.4B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$3.96 (bear case) to HK$5.85 (bull case); at HK$3.17, 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 38% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at 54%, 0336 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$4.63 HK$7.81 HK$12.92 80
Rev-Margin DCF HK$3.27 HK$4.64 HK$7.53 74
Gordon GGM HK$0.7400 HK$1.47 HK$2.22 70
All 9 models by family
DCF Models
FCF DCF HK$4.86 HK$6.88 HK$13.17 38
5Y Revenue Exit HK$3.09 HK$4.19 HK$6.48 39
10Y Revenue Exit HK$3.60 HK$5.80 HK$6.95 36
Dividend Discount
Gordon GGM HK$0.7400 HK$1.47 HK$2.22 70
DDM Multi-Stage HK$0.7400 HK$1.27 HK$1.55 61
Multiples
EV/Revenue HK$2.25 HK$2.74 HK$3.23 43
Asset-Based
NCAV (Graham) HK$1.77 HK$2.37 HK$3.53 50
Growth DCF
Growth DCF HK$4.63 HK$7.81 HK$12.92 80
Rev-Margin DCF HK$3.27 HK$4.64 HK$7.53 74

Widest divergence: DCF Models (HK$5.80) versus Dividend Discount (HK$1.27). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$4.3B
Revenue growth (YoY) +27.3%
Net margin 33.2%
Return on equity 10.9%
Free cash flow HK$758M FY2026
Operating margin 42.5%
More key figures
EPS (TTM) HK$0.0400
EPS growth (YoY) +34.0%
Net cash HK$3.4B FY2026

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

Quality Score breakdown

Overall quality 70/100

Of which business quality 66 · Market factors (momentum, volatility) 30

Profitability 8
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 86
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 17
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

Huabao International Holdings Limited, an investment holding company, engages in the research and development, production, distribution, and sale of flavors, fragrances, food ingredients, tobacco and aroma raw materials, and condiments primarily in the People's Republic of China.

Full company description

Huabao International Holdings Limited, an investment holding company, engages in the research and development, production, distribution, and sale of flavors, fragrances, food ingredients, tobacco and aroma raw materials, and condiments primarily in the People's Republic of China. It offers paper-making products, reconstituted tobacco leaves, and new material products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; cigarette paper and auxiliary products; perfumes; and food flavors and fragrances, as well as offers administrative and management and consultancy services. Huabao International Holdings Limited was incorporated in 1991 and is headquartered in Wan Chai, Hong Kong.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Huabao International Holdings reported revenue of HK$3.5B in FY2026 versus HK$3.9B in FY2022, a compound −2.7%/yr. Reported net income was −HK$389M in FY2026.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$3.5B
Latest YoY
+3.3%
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.
−3.1%
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.
−2.0%
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.
+16.1%
Revenue −2.7%/yr
FY22 HK$3.9B
FY23 HK$3.8B
FY24 HK$3.3B
FY25 HK$3.4B
FY26 HK$3.5B
Net income
FY22 HK$675M
FY23 −HK$1.1B
FY24 HK$234M
FY25 −HK$386M
FY26 −HK$389M

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Cite: Fair Value Calculator (2026). "Huabao International Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0336

Peer Group

Specialty Chemicals · 673 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 70 · Top 25%
Fair Value upside +54% · Top 25%
Return on equity (TTM) 11% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 33% · Top 25%
Operating margin (TTM) 43% · Top 25%
Revenue growth 27% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/B 0.11× · Cheaper than 75% of peers
P/S (TTM) 0.29× · Cheaper than 75% of peers
P/FCF 1.6× · Cheaper than median
PEG 0.77× · 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 0
FUTURE 100 · sector 19
PAST 44 · sector 23
HEALTH 100 · sector 95
DIVIDEND 0 · sector 25

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

Stock Price Fair Value vs Fair Value
Linde plc LIN $489.98 $222.03 -55%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is Huabao International Holdings (0336) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$4.90 versus a price of HK$3.17, about +54% (undervalued).
What is the fair value of 0336?
Our model-based fair value for Huabao International Holdings is HK$4.90 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$3.17.
What is the quality score of 0336?
Huabao International Holdings has a Quality Score of 70/100. 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 Huabao International Holdings (0336)?
Huabao International Holdings reported trailing-twelve-month revenue of about HK$4.3B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0336?
The net profit margin of Huabao International Holdings is about 33.2%, meaning it keeps roughly 33.2% of revenue as net income. Based on the latest reported figures.

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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