0540 (0540) Fair Value & Analysis

Consumer Cyclical · Market cap HK$119M

0 0540 0540 · HK

PriceHK$0.1990

Fair ValueHK$0.2800

Upside+40.7%

Quality61/100

Evidence: High Range HK$0.2100 – HK$0.3500

Fair value as of: Jul 2, 2026

From 22 valuation models · updated today

Share price −5.2% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$0.1320 – HK$0.2380 · fair‑value band HK$0.2100 – HK$0.3500 · the HK$0.1990 price screens below the HK$0.2800 fair value. As of Jul 2, 2026.

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Analysis

0540 (0540) currently trades at HK$0.1990, while our model-based Fair Value estimate is HK$0.2800 — implying the stock looks roughly 40.7% undervalued today. We read business quality at 61/100 (solid quality), in the Consumer Cyclical 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, 0540 generated revenue of HK$371M at a net margin of 2.1%. Revenue declined 43.7% year over year. It earns a return on equity of 8.5%. The balance sheet holds a net cash position of HK$52.5M. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$371M

Revenue growth (YoY) -43.7%

Net margin 2.1%

Return on equity 8.5%

Free cash flow HK$38.7M FY2025

P/E ratio 19.9

More key figures

Operating margin 3.0%

EPS growth (YoY) -56.9%

Net cash HK$52.5M FY2025

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

0540 reported revenue of HK$371M in FY2025 versus HK$750M in FY2021, a compound −16.2%/yr. Reported net income was HK$7.6M in FY2025.

Revenue −16.2%/yr

FY21 HK$750M

FY22 HK$562M

FY23 HK$462M

FY24 HK$661M

FY25 HK$371M

Net income

FY21 −HK$31.3M

FY22 −HK$34.5M

FY23 −HK$5.0M

FY24 HK$16.9M

FY25 HK$7.6M

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Similar stocks

6 more Apparel Manufacturing stocks, each showing price versus our Fair Value estimate (as of Jul 2, 2026).

Stock	Price	Fair Value	vs Fair Value
H & M Hennes & Mauritz AB HMB	kr 165.70	kr 144.10	-13%
Ralph Lauren Corporation RL	$366.55	$365.78	-0%
Moncler S.p.A MONRY	$57.68	$55.30	-4%
Gildan Activewear Inc GIL	$52.09	$33.02	-37%
LPP SA LPP	21,880 PLN	18,197 PLN	-17%
Levi Strauss & Co LEVI	$23.37	$16.66	-29%

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Frequently asked questions

Is 0540 (0540) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$0.2800 versus a price of HK$0.1990 — about +41% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 0540?

Our model-based fair value for 0540 is HK$0.2800 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$0.1990.

What is the quality score of 0540?

0540 has a Quality Score of 61/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 0540 (0540)?

0540 reported trailing-twelve-month revenue of about HK$371M (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 0540?

The net profit margin of 0540 is about 2.1%, meaning it keeps roughly 2.1% of revenue as net income. 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.

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