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Yip's Chemical Holdings (0408) Fair Value & Analysis

Basic Materials · HK · Market cap HK$1.2B

YS Yip's Chemical Holdings 0408 · HK
PriceHK$2.62
Fair ValueHK$3.19
Upside+21.8%
Quality52/100
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Weak Growth
Thin margins · 4.6% net margin
Low debt · generates free cash flow
7.69% dividend yield
Mixed vs. peers (8/14)
Narrow moat 24/100
Evidence: High Range HK$2.34 – HK$4.15 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 2 days ago

Share price +19.1% over the past month.

A solid business, screening 22% undervalued on our models.

What matters now

  • Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from HK$2.34 (bear) to HK$4.15 (bull), base HK$3.19. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 52/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

HK$3.19 HK$1.16 Fair Value HK$3.19 Jan 2021 Aug 2026

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$1.16 – HK$3.19 · fair‑value band HK$2.34 – HK$4.15 · the HK$2.62 price screens below the HK$3.19 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Yip's Chemical Holdings (0408) currently trades at HK$2.62, while our model-based Fair Value estimate is HK$3.19, implying the stock looks roughly 21.8% undervalued today. The Quality Score stands at 52/100 (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: high), always confirm before acting.

Over the trailing twelve months, Yip's Chemical Holdings generated revenue of HK$3.0B at a net margin of 4.6%. Revenue declined 2.6% year over year. It earns a return on equity of 3.4%. Net debt stands at HK$566M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$2.34 (bear case) to HK$4.15 (bull case); at HK$2.62, 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 near its 52-week high and 75% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -68% fair-value upside, at 22%, 0408 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$2.41 HK$2.70 HK$3.18 80
Residual Income HK$5.00 HK$4.84 HK$3.94 76
Rev-Margin DCF HK$2.05 HK$2.32 HK$2.68 74
All 24 models by family
DCF Models
FCF DCF HK$2.37 HK$2.68 HK$3.23 38
Owner Earnings HK$3.20 HK$3.74 HK$4.70 31
5Y Revenue Exit HK$2.05 HK$2.29 HK$2.66 39
5Y EBITDA Exit HK$2.25 HK$2.64 HK$3.17 41
5Y P/E Exit HK$3.27 HK$4.38 HK$5.72 38
10Y Revenue Exit HK$2.17 HK$2.38 HK$2.61 36
10Y EBITDA Exit HK$2.30 HK$2.59 HK$2.90 37
10Y P/E Exit HK$2.87 HK$3.62 HK$4.37 35
Earnings-Based
Graham-Dodd HK$1.67 HK$2.57 HK$3.07 54
EPV HK$1.52 HK$1.55 HK$1.58 59
Dividend Discount
Gordon GGM HK$1.17 HK$1.33 HK$1.51 70
DDM Multi-Stage HK$1.17 HK$1.45 HK$1.78 61
Multiples
P/E Multiple HK$3.14 HK$4.18 HK$5.23 63
P/S Multiple HK$3.14 HK$4.18 HK$5.23 58
P/B Multiple HK$3.14 HK$4.18 HK$5.23 55
EV/EBIT HK$1.94 HK$2.17 HK$2.39 53
EV/EBITDA HK$2.30 HK$2.65 HK$3.00 54
EV/Revenue HK$1.85 HK$2.10 HK$2.35 43
Asset-Based
NCAV (Graham) HK$3.60 HK$4.82 HK$7.20 50
Growth DCF
Growth DCF HK$2.41 HK$2.70 HK$3.18 80
Rev-Margin DCF HK$2.05 HK$2.32 HK$2.68 74
Economic Profit
Residual Income HK$5.00 HK$4.84 HK$3.94 76
ROIC Compounder HK$1.52 HK$1.55 HK$1.58 72
Growth Earnings
Growth-Adj P/E HK$2.23 HK$3.19 HK$4.15 68

Widest divergence: Asset-Based (HK$4.82) versus Dividend Discount (HK$1.33). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$3.0B
Revenue growth (YoY) -2.6%
Net margin 4.6%
Return on equity 3.4%
Free cash flow HK$75.1M FY2025
P/E ratio 8.4 as of Jul 1, 2026
More key figures
Operating margin 4.5%
EPS (TTM) HK$0.1200
Dividend yield 7.7%
EPS growth (YoY) +14.0%
Net debt HK$566M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 50 · Market factors (momentum, volatility) 88

Profitability 25
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 82
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 90
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

Yip's Chemical Holdings Limited, an investment holding company, produces and sells petrochemical products in the People's Republic of China, Hong Kong, and internationally. It operates through Coatings, Inks, Lubricants, Chemical Vapour Recovery and Treatment, and Properties segments.

Full company description

Yip's Chemical Holdings Limited, an investment holding company, produces and sells petrochemical products in the People's Republic of China, Hong Kong, and internationally. It operates through Coatings, Inks, Lubricants, Chemical Vapour Recovery and Treatment, and Properties segments. The Coatings segment provides architectural coatings, including inner and outer emulsion wall paints, floor and art coatings, faux stone paints, wood paints, and auxiliary materials, as well as artistic coatings and waterproofing materials for the household paints market; industrial coatings such as coatings for furniture and toys, as well as protective coatings; and acrylic, water-based, alkyd, polyester resins, and polyurethane curing agents under the Camel, Aquapro, and VIVA brands. The Inks segment produces and sells gravure, offset, screen, and UV printing inks, as well as solvents and processing materials for use in food, beverage, daily necessities, industrial products, printed materials, electronic products, gift packaging, and decorative materials. The Lubricants segment offers automobiles and industrial lubricants, including engine oils, antifreezes, system coolants, brake oils, lubricating greases, gear oils, automatic gearbox oils, hydraulic oils, etc. under the Hercules brand. It also provides special lubricants under the Pacoil brand to the electronics, home appliances, automobiles, bearing manufacturing, engineering machinery, steel, port terminals, cement, toy, textiles, and metal processing industries. The Chemical Vapour Recovery and Treatment segment engages in research, design, manufacturing, and provision of specialised system solutions; and transportation of chemicals, oil and gas. The Properties segment invests in properties. It also trades in coatings, solvents, resins, inks, and lubricants. The company offers treasury and car maintenance services. Yip's Chemical Holdings Limited was founded in 1971 and is headquartered in Wan Chai, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Yip's Chemical Holdings reported revenue of HK$3.0B in FY2025 versus HK$4.0B in FY2021, a compound −7.0%/yr. Reported net income was HK$137M in FY2025, compounding −23.7%/yr from FY2021.

Growth Quality 32/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$3.0B
Latest YoY
−5.3%
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.
−3.8%
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.
−22.6%
Avg. growth/yr (30Y) ⓘ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.
+2.3%
Revenue −7.0%/yr
FY21 HK$4.0B
FY22 HK$3.4B
FY23 HK$3.2B
FY24 HK$3.2B
FY25 HK$3.0B
Net income −23.7%/yr
FY21 HK$406M
FY22 HK$1.2B
FY23 HK$86.6M
FY24 HK$96.9M
FY25 HK$137M
Character of growth · EPS growth decomposed (2014-2025) −3.5 % p.a.
Revenue per share −11.2 pp

of which total revenue −11.2 pp · buybacks/dilution +0.0 pp

EBIT margin −18.0 pp
Tax rate +3.2 pp
Residual (interest, one-offs) +22.6 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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Yip's Chemical Holdings · Fair Value
HK$3.19 +22%Fair Value
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Cite: Fair Value Calculator (2026). "Yip's Chemical Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0408

Peer Group

Specialty Chemicals · 672 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 52 · Below median
Fair Value upside +22% · Top 25%
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 5% · Below median
Revenue growth -3% · Below median
Dividend yield (TTM) 7.7% · Top 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/E (TTM) 8.4× · Cheaper than 75% of peers
P/B 0.29× · Cheaper than 75% of peers
P/S (TTM) 0.39× · Cheaper than 75% of peers
P/FCF 2.0× · Pricier than median
EV/EBITDA 2.6× · Cheaper than 75% of peers

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 62 · sector 0
FUTURE 0 · sector 19
PAST 14 · sector 23
HEALTH 100 · sector 95
DIVIDEND 100 · sector 32

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.

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Solar Industries India Limited SOLARINDS ₹18,730 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,702 ₹351.84 -79%
PT Chandra Asri Pacific Tbk TPIA 2,160 IDR 2,322 IDR +8%
Berger Paints India Limited BERGEPAINT ₹559.80 ₹154.46 -72%
Gujarat Fluorochemicals Limited FLUOROCHEM ₹4,566 ₹836.47 -82%
Himadri Speciality Chemical Limited HSCL ₹778.15 ₹248.63 -68%

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Frequently asked questions

Is Yip's Chemical Holdings (0408) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$3.19 versus a price of HK$2.62, about +22% (undervalued).
What is the fair value of 0408?
Our model-based fair value for Yip's Chemical Holdings is HK$3.19 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.62.
What is the quality score of 0408?
Yip's Chemical Holdings has a Quality Score of 52/100. 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 Yip's Chemical Holdings (0408)?
Yip's Chemical Holdings reported trailing-twelve-month revenue of about HK$3.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0408?
The net profit margin of Yip's Chemical Holdings is about 4.6%, meaning it keeps roughly 4.6% of revenue as net income. Based on the latest reported figures.
Does Yip's Chemical Holdings pay a dividend?
Yip's Chemical Holdings currently shows a dividend yield of about 7.69% relative to its recent price (as of Aug 13, 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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