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Tungtex (Holdings) Company (0518) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$97.9M

TH Tungtex (Holdings) Company 0518 · HK
PriceHK$0.1780
Fair ValueHK$0.0400
Upside-77.5%
Quality53/100
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Expensive Growth
Loss-making · -2.7% net margin
Low debt · negative free cash flow
Trails peers (2/10)
Narrow moat 2/100
Evidence: Low Range HK$0.0400 – HK$0.0400 Share as image

Fair value as of: Aug 13, 2026

From 3 valuation models · updated 2 days ago

Share price −2.7% over the past month.

A solid business, but screening 78% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.0400). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$0.6199 HK$0.1621 Fair Value HK$0.0400 Dec 2018 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$0.1621 – HK$0.6199 · the HK$0.1780 price screens above the HK$0.0400 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Tungtex (Holdings) Company (0518) currently trades at HK$0.1780, while our model-based Fair Value estimate is HK$0.0400, implying the stock looks roughly 77.5% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Tungtex (Holdings) Company generated revenue of HK$567M at a net margin of -2.7%. Revenue declined 17.0% year over year. It earns a return on equity of -4.3%. The balance sheet holds a net cash position of HK$186M. Fundamentals as of Aug 13, 2026

The share trades about 39% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 27% fair-value upside, at -78%, 0518 screens richer 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
Gordon GGM HK$0.0300 HK$0.0400 HK$0.0400 70
DDM Multi-Stage HK$0.0300 HK$0.0400 HK$0.0500 61
NCAV (Graham) HK$0.4200 HK$0.5700 HK$0.8500 50
All 3 models by family
Dividend Discount
Gordon GGM HK$0.0300 HK$0.0400 HK$0.0400 70
DDM Multi-Stage HK$0.0300 HK$0.0400 HK$0.0500 61
Asset-Based
NCAV (Graham) HK$0.4200 HK$0.5700 HK$0.8500 50

Widest divergence: Asset-Based (HK$0.5700) versus Dividend Discount (HK$0.0400). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) HK$567M
Revenue growth (YoY) -17.0%
Net margin -2.7%
Return on equity -4.3%
Free cash flow −HK$47.4M FY2025
Operating margin -3.3%
More key figures
EPS (TTM) HK$-0.0100
EPS growth (YoY) +128%
Net cash HK$186M FY2026

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

Quality Score breakdown

Overall quality 53/100

Of which business quality 56 · Market factors (momentum, volatility) 34

Profitability 27
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 22
Price trend over the last 3–12 months (market factor)
52W Momentum 10
Distance to the 52-week high (market factor)
Net Issuance 82
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

Tungtex (Holdings) Company Limited, an investment holding company, manufactures, sells, and retails garment products in Asia, North America, Europe, and internationally. It is involved in the trading of garments and property investment activities. The company also offers ladies sportswear, casual wear, and suit pieces.

Full company description

Tungtex (Holdings) Company Limited, an investment holding company, manufactures, sells, and retails garment products in Asia, North America, Europe, and internationally. It is involved in the trading of garments and property investment activities. The company also offers ladies sportswear, casual wear, and suit pieces. It serves designer labels, department stores, chain stores, and specialty stores through its retail shops and online platforms. The company sells its products under the Betu brand. Tungtex (Holdings) Company Limited was founded in 1977 and is based in Kwun Tong, Hong Kong.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tungtex (Holdings) Company reported revenue of HK$567M in FY2026 versus HK$588M in FY2022, a compound −0.9%/yr. Reported net income was −HK$15.0M in FY2026.

Growth Quality 15/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
HK$567M
Latest YoY
−15.3%
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.
−9.0%
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.
+4.3%
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.
−1.4%
Revenue −0.9%/yr
FY22 HK$588M
FY23 HK$753M
FY24 HK$517M
FY25 HK$669M
FY26 HK$567M
Net income
FY22 −HK$26.1M
FY23 HK$19.7M
FY24 −HK$12.8M
FY25 −HK$9.9M
FY26 −HK$15.0M

0518 screens 78% overvalued. Compare with H & M Hennes & Mauritz AB →

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Cite: Fair Value Calculator (2026). "Tungtex (Holdings) Company Fair Value". https://www.fairvalue-calculator.com/stock/0518

Peer Group

Apparel Manufacturing · 213 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 53 · Below median
Fair Value upside −78% · Bottom 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -3% · Bottom 25%
Operating margin (TTM) -3% · Bottom 25%
Revenue growth -17% · Bottom 25%
Dividend yield (TTM) 2.3% · Below median

Valuation Multiples vs Apparel Manufacturing median · lower = cheaper

P/S (TTM) 0.02× · 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 0 · sector 32
FUTURE 0 · sector 5
PAST 0 · sector 21
HEALTH 100 · sector 98
DIVIDEND 46 · sector 55

VALUE 0: the price sits above our fair-value range.

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.

Similar stocks

10 more Apparel Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
H & M Hennes & Mauritz AB HMB kr 174.25 kr 165.47 -5%
LPP SA LPP 22,220 PLN 17,754 PLN -20%
Bosideng International Holdings 3998 HK$4.65 HK$5.92 +27%
Youngor Fashion Co 600177 ¥7.78 ¥5.59 -28%
Page Industries Limited PAGEIND ₹38,295 ₹12,395 -68%
Hla Group 600398 ¥6.07 ¥9.92 +63%
Youngone Corporation 111770 85,200 KRW 188,736 KRW +122%
F&F Co 383220 68,800 KRW 179,500 KRW +161%
Youngone Holdings 009970 188,300 KRW 697,038 KRW +270%
Wiselink Co 8932 105.00 TWD 37.95 TWD -64%

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Frequently asked questions

Is Tungtex (Holdings) Company (0518) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.0400 versus a price of HK$0.1780, about −78% (overvalued).
What is the fair value of 0518?
Our model-based fair value for Tungtex (Holdings) Company is HK$0.0400 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.1780.
What is the quality score of 0518?
Tungtex (Holdings) Company has a Quality Score of 53/100. 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 Tungtex (Holdings) Company (0518)?
Tungtex (Holdings) Company reported trailing-twelve-month revenue of about HK$567M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0518?
The net profit margin of Tungtex (Holdings) Company is about -2.7%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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