Fountain Set Holdings Ltd (0420) fair value: what the stock is really worth
As of Sep 29, 2026: fair value of Fountain Set Holdings Ltd HK$1.54, price HK$0.62, upside +150.4%, quality 63 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? Yes
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Fountain Set Holdings Ltd
0420 · HKClearly undervaluedStrong Fair Value upside, but quality is only moderate.
What runs behind every stock
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Price vs Fair Value
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$0.2920 – HK$1.07 · fair‑value band HK$1.51 – HK$1.63 · the HK$0.6150 price screens below the HK$1.54 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.
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Company profile
Fountain Set (Holdings) Limited, an investment holding company, produces and sells knitted fabrics and garments, and dyed yarns in Hong Kong, the People's Republic of China, Taiwan, Korea, Sri Lanka, the United States, Europe, Vietnam, and internationally. The company engages in knitting and dyeing, printing, finishing, and garment manufacturing activities.
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Fountain Set (Holdings) Limited, an investment holding company, produces and sells knitted fabrics and garments, and dyed yarns in Hong Kong, the People's Republic of China, Taiwan, Korea, Sri Lanka, the United States, Europe, Vietnam, and internationally. The company engages in knitting and dyeing, printing, finishing, and garment manufacturing activities. It also engages in trading yarns, dyestuffs, dyed fabrics, chemicals, and garments; and heating supply activities. Fountain Set (Holdings) Limited was founded in 1969 and is headquartered in Kwai Chung, Hong Kong.
Stock analysis
Fountain Set Holdings Ltd (0420) currently trades at HK$0.6150, while our model-based Fair Value estimate is HK$1.54, implying the stock looks roughly 60.1% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of HK$2.82 per share, and 21 of the 24 models we run sit above the HK$0.6150 price.
Bear case: the Dividend Discount group reads lowest at HK$0.4100, and 3 of the 24 models stay below the price. Evidence for this calculation is low.
Scenario range: HK$1.51 (bear) to HK$1.63 (bull), the price of HK$0.6150 sits below 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 63/100 (solid quality), in the Consumer Cyclical sector.
Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.
Fountain Set Holdings Ltd reported revenue of HK$4.1B in FY2025 versus HK$6.8B in FY2021, a compound −11.5%/yr. Reported net income was HK$71.3M in FY2025, compounding −26.3%/yr from FY2021.
Key figures
Market cap HK$821M (≈ $105M) · P/E ratio 11.2 · P/S ratio 0.19 · EPS (TTM) HK$−0.0300 · Dividend yield 9.3% · Net margin 1.7% · Return on equity 2.4% · Return on assets (EBIT) −0.1%.
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 17% below its 52-week high and 17% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −11% fair-value upside, at 150%, 0420 screens cheaper than that median.
Fair Value models
All 24 models by family
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Set up alert →Quality Score breakdown
Of which business quality 64 · Market factors (momentum, volatility) 51
Revenue & earnings trend
Growth Forecast
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Compare Fountain Set Holdings Ltd with another stock
Price, fair value, quality and upside side by side.
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.Textile Manufacturing · 332 stocks
Valuation Multiplesvs Textile Manufacturing median · lower = cheaper
Strength profile in five axes (Snowflake)
Context: sector, industry, market
- Is the Consumer Discretionary sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Hong Kong Stocks
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Tongkun Group 601233 | ¥23.26 | ¥14.53 | −38% |
| Shenzhou International Group 2313 | HK$34.08 | HK$71.99 | +111% |
| Inner Mongolia ERDOS Resources Co 600295 | ¥12.80 | ¥14.35 | +12% |
| Far Eastern New Century Corporation 1402 | 28.15 TWD | 24.92 TWD | −11% |
| K.P.R. Mill Limited KPRMILL | ₹1,106 | ₹901.34 | −19% |
| Zhejiang Orient Holdings 600120 | ¥4.64 | ¥2.40 | −48% |
| Albany International Corp AIN | $60.98 | $24.73 | −59% |
| Vardhman Textiles Limited VTL | ₹554.00 | ₹270.14 | −51% |
| Bros Eastern.,Ltd 601339 | ¥7.47 | ¥7.87 | +5% |
| Ruentex Industries Ltd 2915 | 60.00 TWD | 106.63 TWD | +78% |
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Key figures of Fountain Set Holdings Ltd
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