0506 (0506) Fair Value & Analysis

Consumer Defensive · Market cap HK$8.6B

0 0506 0506 · HK

PriceHK$3.09

Fair ValueHK$7.47

Upside+141.7%

Quality61/100

Evidence: Medium Range HK$5.60 – HK$9.34

Fair value as of: Jul 2, 2026

From 26 valuation models · updated today

Share price −8.0% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$2.75 – HK$4.73 · fair‑value band HK$5.60 – HK$9.34 · the HK$3.09 price screens below the HK$7.47 fair value. As of Jul 2, 2026.

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Analysis

0506 (0506) currently trades at HK$3.09, while our model-based Fair Value estimate is HK$7.47 — implying the stock looks roughly 141.7% undervalued today. We read business quality at 61/100 (solid quality), in the Consumer Defensive 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: medium) — always confirm before acting.

Over the trailing twelve months, 0506 generated revenue of HK$22.1B at a net margin of 3.9%. Revenue declined 3.6% year over year. It earns a return on equity of 13.8%. The balance sheet holds a net cash position of HK$4.5B. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$22.1B

Revenue growth (YoY) -3.6%

Net margin 3.9%

Return on equity 13.8%

Free cash flow HK$2.2B FY2025

P/E ratio 8.6

More key figures

Operating margin 6.3%

EPS (TTM) HK$0.2100

Dividend yield 4.8%

EPS growth (YoY) -3.8%

Net cash HK$4.5B FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 2, 2026. TTM = trailing twelve months.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

0506 reported revenue of HK$22.1B in FY2025 versus HK$19.8B in FY2021, a compound +2.8%/yr. Reported net income was HK$862M in FY2025, compounding +10.8%/yr from FY2021.

Revenue +2.8%/yr

FY21 HK$19.8B

FY22 HK$21.0B

FY23 HK$21.4B

FY24 HK$21.5B

FY25 HK$22.1B

Net income +10.8%/yr

FY21 HK$572M

FY22 HK$660M

FY23 HK$833M

FY24 HK$861M

FY25 HK$862M

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Similar stocks

6 more Beverages - Non-Alcoholic stocks, each showing price versus our Fair Value estimate (as of Jul 2, 2026).

Stock	Price	Fair Value	vs Fair Value
The Coca-Cola Company CCC3	€67.86	€16.47	-76%
PepsiCo, Inc PEP	2,483 MXN	93.50 MXN	-96%
Monster Beverage Corporation MNST	$89.55	$40.91	-54%
Nongfu Spring Co 9633	HK$41.72	HK$74.64	+79%
Coca-Cola FEMSA, S.A. C2CA34	R$108.87	R$183.92	+69%
Keurig Dr Pepper Inc KDP	$30.53	$13.50	-56%

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Frequently asked questions

Is 0506 (0506) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$7.47 versus a price of HK$3.09 — about +142% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 0506?

Our model-based fair value for 0506 is HK$7.47 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$3.09.

What is the quality score of 0506?

0506 has a Quality Score of 61/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 0506 (0506)?

0506 reported trailing-twelve-month revenue of about HK$22.1B (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 0506?

The net profit margin of 0506 is about 3.9%, meaning it keeps roughly 3.9% of revenue as net income. Based on the latest reported figures.

Does 0506 pay a dividend?

0506 currently shows a dividend yield of about 4.83% relative to its recent price (as of Jul 2, 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.

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