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Yau Lee Holdings Ltd (0406) fair value: what the stock is really worth

As of Sep 29, 2026: fair value of Yau Lee Holdings Ltd HK$0.96, price HK$0.56, upside +73.0%, quality 42 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? No
  3. Add to watchlist

Industrials · HK · ISIN BMG9834K1505

YL Thin data Sep 27, 2026

Yau Lee Holdings Ltd

0406 · HK

Cheap, value-trap riskThe stock looks deeply undervalued, but low quality raises value-trap risk.

✓Fair value HK$0.9600 · Strongly undervalued (+73.0%)
!Quality 42/100
!Expensive Growth (revenue 5y +10.0 %/yr)
!Loss-making · -1.9% net margin (TTM)
!Low debt · negative free cash flow
!Trails peers (2/9)
!Narrow moat 3/100
!Evidence only low, so the estimate is less certain
!Weak on future: 5 out of 100
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

HK$1.41 HK$0.4800 Fair Value HK$0.9600 Aug 2016 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.

How to read this chart

60‑month range HK$0.4800 – HK$1.41 · fair‑value band HK$0.4600 – HK$1.52 · the HK$0.5550 price screens below the HK$0.9600 fair value. Dashed = 300-day average. As of Sep 27, 2026.

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Company profile

Yau Lee Holdings Limited, an investment holding company, engages in the construction business in Hong Kong and internationally. It operates through Construction; Electrical and Mechanical Installation; Building Materials Supply; Property Investment and Development; and Hotel Operations segments.

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Yau Lee Holdings Limited, an investment holding company, engages in the construction business in Hong Kong and internationally. It operates through Construction; Electrical and Mechanical Installation; Building Materials Supply; Property Investment and Development; and Hotel Operations segments. The company is involved in contracting of building construction, plumbing, renovation, maintenance, and fitting-out projects; electrical and mechanical installation; provision of electrical, mechanical, ventilation and air conditioning, fire, and environmental engineering services; and supplying of construction and building materials. It also offers software development; and architectural services. In addition, the company engages in theme painting; development of environmental protection related software and programming activities; energy optimization solution and environmental protection business; licensing of patent; sale of precast products; books distribution and provision of training; trading of building materials and environmental technology products; and hotel management. Further, it provides building information modeling, and other virtual design and construction services; financing services; lift repair and maintenance services; welding services for pipes and fillings; water treatment services; project management and consultancy service; building; and curtain wall installation services. Yau Lee Holdings Limited was founded in 1958 and is headquartered in Kowloon Bay, Hong Kong.

Stock analysis

Yau Lee Holdings Ltd (0406) currently trades at HK$0.5550, while our model-based Fair Value estimate is HK$0.9600, implying the stock looks roughly 42.2% undervalued today.

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Valuation

Bull case: the Asset-Based group reads highest at a median of HK$1.89 per share, and 3 of the 3 models we run sit above the HK$0.5550 price.

Bear case: the Dividend Discount group reads lowest at HK$0.7600, and 0 of the 3 models stay below the price. Evidence for this calculation is low.

Scenario range: HK$0.4600 (bear) to HK$1.52 (bull), the price of HK$0.5550 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 42/100 (below-average quality), in the Industrials sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

Yau Lee Holdings Ltd 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.

Key figures

Market cap HK$243M (≈ $31.0M) · P/S ratio 0.02 · EPS (TTM) HK$−0.1900 · Dividend yield 10.0% · Net margin −1.9% · Return on equity −15.8% · Return on assets (EBIT) 1.3% · Operating margin −4.4%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).

What moves the price

The share trades about 31% below its 52-week high and 16% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Industrials peers we cover trades at −34% fair-value upside, at 73%, 0406 screens cheaper than that median.

Fair Value models

Bear HK$0.4600 Fair Value HK$0.9600 Bull HK$1.52
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
Gordon GGM HK$0.4400 HK$0.8700 HK$1.32 67
DDM Multi-Stage HK$0.4400 HK$0.7600 HK$0.9200 67
NCAV (Graham) HK$1.41 HK$1.89 HK$2.82 54
All 3 models by family
Dividend Discount
Gordon GGM HK$0.4400 HK$0.8700 HK$1.32 67
DDM Multi-Stage HK$0.4400 HK$0.7600 HK$0.9200 67
Asset-Based
NCAV (Graham) HK$1.41 HK$1.89 HK$2.82 54

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Quality Score breakdown

Overall quality 42/100

Of which business quality 42 · Market factors (momentum, volatility) 32

Profitability 25
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 23
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 82
Share count: buybacks or dilution?

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Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 35/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+13.5%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+17.8%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+10.0%
Start year 2021 (pandemic). Over 10 years: +3.9% a year
Revenue growth 26 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+6.7%
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
2.7% (2021) → −1.5% (2026)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
not computed

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Compare Yau Lee Holdings Ltd with another stock

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Peer Groupⓘ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.Engineering & Construction · 800 stocks

Beats the industry median on 2/8 measures
Overall it trails its industry peers.
Valuation
Quality Score 42 · Below median
Fair Value upside +73.0% · Top 25%
Profitability
Return on assets −1.4% · Bottom 25%
Net margin (TTM) −1.9% · Bottom 25%
Operating margin (TTM) −4.4% · Bottom 25%
Growth and dividend
Revenue growth 0.9% · Below median
Dividend yield (TTM) 10.0% · Top 25%
Balance sheet
Debt / equity 0.37× · Above median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)100 · sector 27
FUTURE (revenue growth)5 · sector 14
PAST (return on equity)0 · sector 28
HEALTH (low debt)82 · sector 94
DIVIDEND (yield)100 · sector 40

Context: sector, industry, market

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

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
Quanta Services, Inc PWR $649.13 $162.77 −75%
Vinci SA DG €111.30 €186.22 +67%
Comfort Systems USA, Inc FIX $1,658 $1,116 −33%
Larsen & Toubro Limited LT ₹3,876 ₹1,994 −49%
Samsung C&T Corporation 028260 367,000 KRW 159,718 KRW −56%
Ferrovial N.V FER $55.77 $21.74 −61%
HOCHTIEF Aktiengesellschaft HOT €397.20 €203.86 −49%
EMCOR Group EME $762.21 $525.05 −31%
ACS, Actividades de Construcción y Servicios, S.A ACS €93.60 €62.20 −34%
Bouygues SA EN €43.14 €66.31 +54%

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Yau Lee Holdings Ltd · Fair Value
HK$0.9600 +42%Fair Value
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Cite: Fair Value Calculator (2026). "Yau Lee Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/0406

Frequently asked questions

Is Yau Lee Holdings Ltd (0406) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of HK$0.9600 versus a price of HK$0.5550, about +73% upside (undervalued).
What is the fair value of 0406?
Our model-based fair value for Yau Lee Holdings Ltd is HK$0.9600 (as of Sep 27, 2026), built from audited fundamentals. The current price: HK$0.5550.
What is the quality score of 0406?
Yau Lee Holdings Ltd has a Quality Score of 42/100. 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 price target for Yau Lee Holdings Ltd (0406)?
Our model-based price target is the fair value of HK$0.9600 (as of Sep 27, 2026) from 3 valuation models. Cautious scenario HK$0.4600, optimistic scenario HK$1.52. It is a calculation from audited fundamentals, not an analyst target.
What is the Yau Lee Holdings Ltd stock forecast for 2026?
Our models put fair value at HK$0.9600, about +73% upside versus a price of HK$0.5550 (undervalued). Cautious scenario HK$0.4600, optimistic scenario HK$1.52. The calculation is refreshed regularly with new filings.
What is the revenue of Yau Lee Holdings Ltd (0406)?
Yau Lee Holdings Ltd reported trailing-twelve-month revenue of about HK$10.9B (latest available figure, as of Sep 27, 2026).
Does Yau Lee Holdings Ltd pay a dividend?
Yau Lee Holdings Ltd currently shows a dividend yield of about 10.00% relative to its recent price (as of Sep 27, 2026).
What is the intrinsic value of Yau Lee Holdings Ltd (0406)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Yau Lee Holdings Ltd it is HK$0.9600 per share (as of Sep 27, 2026), against a price of HK$0.5550. It is the blended result of 3 valuation models (cash flow, earnings, asset, dividend).
Is Yau Lee Holdings Ltd stock overvalued or undervalued in 2026?
As of Sep 27, 2026, 0406 trades below its calculated fair value: price HK$0.5550, fair value HK$0.9600, a gap of about +73% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0406?
No. The price is what the market pays today (HK$0.5550); the fair value is what the company's own numbers justify (HK$0.9600). For Yau Lee Holdings Ltd the two are HK$0.4050 per share apart. That gap is exactly why we show both numbers side by side.
How much is Yau Lee Holdings Ltd worth?
The market values Yau Lee Holdings Ltd at about HK$243M (market capitalisation, as of Sep 27, 2026). Per share that is HK$0.5550; our models calculate a fair value of HK$0.9600 per share.
What do the bullish and bearish scenarios say about 0406?
Our models span a range for Yau Lee Holdings Ltd: cautious scenario HK$0.4600, base HK$0.9600, optimistic HK$1.52 per share (as of Sep 27, 2026, price HK$0.5550). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Yau Lee Holdings Ltd (0406)?
Balance-sheet figures for Yau Lee Holdings Ltd (as of Sep 27, 2026): return on equity −15.8%, debt of 0.37 per unit of equity. They feed the Quality Score of 42/100, which measures business quality independently of the share price.
How far is 0406 from its 52-week high?
Yau Lee Holdings Ltd trades at HK$0.5550, about 31% below its 52-week high of HK$0.8000 and 16% above the low of HK$0.4800 (as of Sep 29, 2026). Distance from the high says nothing about value: that is what the fair value of HK$0.9600 is for.
Which stocks are comparable to Yau Lee Holdings Ltd?
From the same area (Industrials) we also value Quanta Services, Inc, Vinci SA, Comfort Systems USA, Inc, Larsen & Toubro Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Yau Lee Holdings Ltd stock attractive at the current price?
The data as of Sep 27, 2026: price HK$0.5550, calculated fair value HK$0.9600 (+73%), Quality Score 42/100, from 3 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0406 calculated?
We run Yau Lee Holdings Ltd through 3 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of HK$0.9600, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.9 % above its aggregate fair value. Yau Lee Holdings Ltd currently trades 42 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Yau Lee Holdings Ltd (0406)?
The closing price on Sep 29, 2026 was HK$0.5550. Our model-based fair value is HK$0.9600, about +73% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Yau Lee Holdings Ltd right now?
The large discount to fair value meets weak quality (42/100). That raises the risk this is a value trap rather than a bargain. The model range is unusually wide (HK$0.4600 to HK$1.52). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Key figures of Yau Lee Holdings Ltd

How large is the market capitalisation of Yau Lee Holdings Ltd (0406)?
The market capitalisation of Yau Lee Holdings Ltd is HK$243M (≈ $31.0M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Yau Lee Holdings Ltd (0406)?
The price-to-sales ratio of Yau Lee Holdings Ltd is 0.02 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Yau Lee Holdings Ltd (0406)?
Earnings per share at Yau Lee Holdings Ltd are HK$−0.1900. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Yau Lee Holdings Ltd (0406)?
The dividend yield of Yau Lee Holdings Ltd is 10.0%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Yau Lee Holdings Ltd (0406)?
The net margin of Yau Lee Holdings Ltd is −1.9% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Yau Lee Holdings Ltd (0406)?
The return on equity (ROE) of Yau Lee Holdings Ltd is −15.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Yau Lee Holdings Ltd (0406)?
On an EBIT basis the return on assets of Yau Lee Holdings Ltd is 1.3% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Yau Lee Holdings Ltd (0406)?
The operating margin of Yau Lee Holdings Ltd is −4.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Yau Lee Holdings Ltd (0406)?
Revenue at Yau Lee Holdings Ltd is growing +0.9% versus a year earlier (3y avg +17.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Yau Lee Holdings Ltd (0406)?
Earnings per share at Yau Lee Holdings Ltd are growing +59.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Yau Lee Holdings Ltd (0406) generate?
The free cash flow of Yau Lee Holdings Ltd is −HK$451M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Yau Lee Holdings Ltd (0406) carry?
The net debt of Yau Lee Holdings Ltd is HK$2.1B (fiscal year 2026). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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