Yau Lee Holdings (0406) Fair Value & Analysis

Industrials · HK · Market cap HK$219M

Below-average quality, screening 17% undervalued on our models.

What matters now

• A fairly wide model range (HK$0.3700 to HK$0.8400) leaves room in how you read the outcome.
• Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.5000 – HK$1.41 · fair‑value band HK$0.3700 – HK$0.8400 · the HK$0.5400 price screens below the HK$0.6300 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Yau Lee Holdings (0406) currently trades at HK$0.5400, while our model-based Fair Value estimate is HK$0.6300, implying the stock looks roughly 16.7% undervalued today. The Quality Score stands 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, Yau Lee Holdings 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 Aug 13, 2026

Our scenario range runs from HK$0.3700 (bear case) to HK$0.8400 (bull case); at HK$0.5400, the current price sits within 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 19% 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 17%, 0406 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.

Widest divergence: Asset-Based (HK$1.89) versus Dividend Discount (HK$0.5500). Highest evidence: Gordon GGM (70).

Key figures & financial health

Quality Score breakdown

About the company

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.

Full company description

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.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Yau Lee Holdings 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.

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Peer Group

Engineering & Construction · 838 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.

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.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

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.