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Pan Asia Environmental Protection Group (0556) Fair Value & Analysis

Industrials · HK · Market cap HK$673M

PA Pan Asia Environmental Protection Group 0556 · HK
PriceHK$0.4100
Fair ValueHK$0.1900
Upside-53.7%
Quality43/100
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Expensive Growth
Thin margins · 3.2% net margin
Low debt · negative free cash flow
Trails peers (3/12)
Narrow moat 20/100
Evidence: High Range HK$0.1400 – HK$0.2400 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 2 days ago

Share price −32.8% over the past month.

Below-average quality, and screening another 54% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.2400). The favourable scenario is already priced in.
  • Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

HK$0.9400 HK$0.1525 Fair Value HK$0.1900 Mar 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$0.1525 – HK$0.9400 · fair‑value band HK$0.1400 – HK$0.2400 · the HK$0.4100 price screens above the HK$0.1900 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Pan Asia Environmental Protection Group (0556) currently trades at HK$0.4100, while our model-based Fair Value estimate is HK$0.1900, implying the stock looks roughly 53.7% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Industrials 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: high).

Over the trailing twelve months, Pan Asia Environmental Protection Group generated revenue of HK$243M at a net margin of 3.2%. Revenue declined 5.1% year over year. It earns a return on equity of 0.7%. The balance sheet holds a net cash position of HK$1.2B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1400 (bear case) to HK$0.2400 (bull case); at HK$0.4100, the current price sits above 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 about 59% below its 52-week high and 58% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -31% fair-value upside, at -54%, 0556 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
Residual Income HK$0.6400 HK$0.5900 HK$0.3800 76
ROIC Compounder HK$1.22 HK$1.22 HK$1.23 72
Gordon GGM HK$0.1100 HK$0.1900 HK$0.2600 70
All 16 models by family
DCF Models
Owner Earnings HK$1.27 HK$1.31 HK$1.36 31
Earnings-Based
Graham-Dodd HK$0.0500 HK$0.1400 HK$0.1800 54
PEG = 1.0 HK$0.0300 HK$0.0400 HK$0.0500 46
EPV HK$1.22 HK$1.22 HK$1.23 59
Dividend Discount
Gordon GGM HK$0.1100 HK$0.1900 HK$0.2600 70
DDM Multi-Stage HK$0.1100 HK$0.1500 HK$0.2000 61
Multiples
P/E Multiple HK$0.1200 HK$0.1600 HK$0.2000 63
P/S Multiple HK$0.1000 HK$0.1300 HK$0.1700 58
P/B Multiple HK$0.1000 HK$0.1300 HK$0.1700 55
EV/EBIT HK$1.32 HK$1.36 HK$1.41 53
EV/EBITDA HK$1.31 HK$1.36 HK$1.41 54
EV/Revenue HK$1.27 HK$1.32 HK$1.36 43
Asset-Based
NCAV (Graham) HK$0.5000 HK$0.6600 HK$0.9900 50
Economic Profit
Residual Income HK$0.6400 HK$0.5900 HK$0.3800 76
ROIC Compounder HK$1.22 HK$1.22 HK$1.23 72
Growth Earnings
Growth-Adj P/E HK$0.1000 HK$0.1400 HK$0.1800 68

Widest divergence: DCF Models (HK$1.31) versus Earnings-Based (HK$0.1400). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$243M
Revenue growth (YoY) -5.1%
Net margin 3.2%
Return on equity 0.7%
Free cash flow −HK$6.6M FY2025
P/E ratio 67.0 as of Jul 2, 2026
More key figures
Operating margin 4.3%
EPS growth (YoY) -71.5%
Net cash HK$1.2B FY2025

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

Quality Score breakdown

Overall quality 43/100

Of which business quality 43 · Market factors (momentum, volatility) 43

Profitability 14
Margins and returns on capital today
Quality Growth 25
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 48
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

Pan Asia Environmental Protection Group Limited, together with its subsidiaries, engages in the development, manufacture, and sale of environmental protection (EP) products and equipment in the People's Republic of China. It operates in two segments, EP Products and Equipment; and EP Construction Engineering Services.

Full company description

Pan Asia Environmental Protection Group Limited, together with its subsidiaries, engages in the development, manufacture, and sale of environmental protection (EP) products and equipment in the People's Republic of China. It operates in two segments, EP Products and Equipment; and EP Construction Engineering Services. The company offers water treatment and flue gas treatment, solid waste treatment equipment, and components and pipes. It is also involved in the sale and installation of water treatment and flue gas treatment, and solid waste treatment equipment and pipes; contracting of water treatment and flue gas treatment and solid waste treatment projects. In addition, the company provides EP construction engineering services; and environmental engineering design, consultation, and construction services. Pan Asia Environmental Protection Group Limited was founded in 1998 and is headquartered in Tsim Sha Tsui, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pan Asia Environmental Protection Group reported revenue of HK$243M in FY2025 versus HK$38.2M in FY2021, a compound +58.8%/yr. Reported net income was HK$7.8M in FY2025, compounding −1.5%/yr from FY2021.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$243M
Latest YoY
−3.6%
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.
+16.0%
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.
+43.8%
Avg. growth/yr (21Y) 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.
+2.5%
Revenue +58.8%/yr
FY21 HK$38.2M
FY22 HK$156M
FY23 HK$220M
FY24 HK$252M
FY25 HK$243M
Net income −1.5%/yr
FY21 HK$8.3M
FY22 −HK$899K
FY23 HK$1.5M
FY24 HK$17.2M
FY25 HK$7.8M
Character of growth · EPS growth decomposed (2014-2025) −19.8 % p.a.
Revenue per share −13.9 pp

of which total revenue −12.9 pp · buybacks/dilution −1.0 pp

EBIT margin −4.6 pp
Tax rate −2.3 pp
Residual (interest, one-offs) +0.9 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).

0556 screens 54% overvalued. Compare with Veralto Corporation →

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Cite: Fair Value Calculator (2026). "Pan Asia Environmental Protection Group Fair Value". https://www.fairvalue-calculator.com/stock/0556

Peer Group

Pollution & Treatment Controls · 91 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 43 · Below median
Fair Value upside −54% · Below median
Return on equity (TTM) 1% · Below median
Return on assets 1% · Below median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 4% · Below median
Revenue growth -5% · Below median
Dividend yield (TTM) 2.0% · Below median

Valuation Multiples vs Pollution & Treatment Controls median · lower = cheaper

P/E (TTM) 67.0× · Pricier than 75% of peers
P/B 0.68× · Cheaper than median
P/S (TTM) 2.78× · Pricier than median

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 0
FUTURE 0 · sector 7
PAST 3 · sector 16
HEALTH 100 · sector 95
DIVIDEND 41 · sector 43

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 Pollution & Treatment Controls stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Veralto Corporation VLTO $97.97 $67.62 -31%
Zurn Elkay Water Solutions Corporation ZWS $51.02 $24.92 -51%
Canmax Technologies Co 300390 ¥64.05 ¥10.07 -84%
CECO Environmental Corp CECO $73.97 $15.19 -79%
Fujian Longking Co 600388 ¥18.10 ¥15.59 -14%
Munters Group MTRS kr 183.90 kr 48.58 -74%
China Conch Venture Holdings 0586 HK$8.69 HK$10.70 +23%
Mega Union Technology Inc 6944 747.00 TWD 539.58 TWD -28%
MayAir Technology (China) Co 688376 ¥71.82 ¥18.80 -74%
Jingjin Equipment Inc 603279 ¥12.75 ¥18.97 +49%

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Frequently asked questions

Is Pan Asia Environmental Protection Group (0556) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.1900 versus a price of HK$0.4100, about −54% (overvalued).
What is the fair value of 0556?
Our model-based fair value for Pan Asia Environmental Protection Group is HK$0.1900 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.4100.
What is the quality score of 0556?
Pan Asia Environmental Protection Group has a Quality Score of 43/100. 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 Pan Asia Environmental Protection Group (0556)?
Pan Asia Environmental Protection Group reported trailing-twelve-month revenue of about HK$243M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0556?
The net profit margin of Pan Asia Environmental Protection Group is about 3.2%, meaning it keeps roughly 3.2% 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.

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