0406 (0406) Fair Value & Analysis

Industrials · Market cap HK$219M

0 0406 0406 · HK

PriceHK$0.5000

Fair ValueHK$0.7000

Upside+40.0%

Quality42/100

Evidence: Low Range HK$0.3900 – HK$0.9600

Fair value as of: Jul 1, 2026

From 3 valuation models · updated today

Share price −16.7% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$0.5000 – HK$0.8200 · fair‑value band HK$0.3900 – HK$0.9600 · the HK$0.5000 price screens below the HK$0.7000 fair value. As of Jul 1, 2026.

✦ Which stocks are undervalued right now? Check free Discover now →

Analysis

0406 (0406) currently trades at HK$0.5000, while our model-based Fair Value estimate is HK$0.7000 — implying the stock looks roughly 40.0% undervalued today. We read business quality at 42/100 (below-average 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: low) — always confirm before acting.

Over the trailing twelve months, 0406 generated revenue of HK$10.9B at a net margin of -1.9%. Revenue grew 0.9% year over year. It earns a return on equity of -15.8%. Net debt stands at HK$2.1B. Fundamentals as of Jul 1, 2026

Key figures & financial health

Revenue (TTM) HK$10.9B

Revenue growth (YoY) +0.9%

Net margin -1.9%

Return on equity -15.8%

Free cash flow −HK$451M FY2025

Operating margin -4.4%

More key figures

EPS (TTM) HK$-0.1900

EPS growth (YoY) +59.2%

Net debt HK$2.1B FY2026

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

0406 reported revenue of HK$10.9B in FY2026 versus HK$6.7B in FY2022, a compound +12.9%/yr. Reported net income was −HK$204M in FY2026.

Revenue +12.9%/yr

FY22 HK$6.7B

FY23 HK$6.7B

FY24 HK$7.8B

FY25 HK$9.6B

FY26 HK$10.9B

Net income

FY22 HK$68.2M

FY23 HK$49.6M

FY24 HK$67.1M

FY25 −HK$98.9M

FY26 −HK$204M

Is 0406 fairly valued? → Check now

Similar stocks

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

Stock	Price	Fair Value	vs Fair Value
Larsen & Toubro Limited LTOD	$0.4110	$0.0100	-98%
Samsung C&T Corporation 028260	407,500 KRW	236,704 KRW	-42%
China State Construction Engineering Corporation 601668	¥4.74	¥15.02	+217%
China Energy Engineering Corporation 601868	¥2.89	¥1.35	-53%
TopBuild Corp BLD	7,547 MXN	3,472 MXN	-54%
Shandong Xinneng Taishan Power Generation Co 000720	131,900 KRW	76,878 KRW	-42%

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks Technology Financial Services Healthcare Consumer Cyclical Consumer Defensive Communication Services Industrials Energy Basic Materials Real Estate Utilities Deeply Undervalued Stocks Undervalued Blue-Chip Stocks Undervalued Small-Cap Stocks

Frequently asked questions

Is 0406 (0406) undervalued?

As of Jul 1, 2026, our model estimates a fair value of HK$0.7000 versus a price of HK$0.5000 — about +40% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 0406?

Our model-based fair value for 0406 is HK$0.7000 (as of Jul 1, 2026), built from audited fundamentals. The current price is HK$0.5000.

What is the quality score of 0406?

0406 has a Quality Score of 42/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 0406 (0406)?

0406 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 0406?

The net profit margin of 0406 is about -1.9%, meaning it is currently running at a net loss. 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.

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