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Tao Heung Holdings (0573) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$274M

TH Tao Heung Holdings 0573 · HK
PriceHK$0.2600
Fair ValueHK$0.2278
Upside-12.4%
Quality52/100
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Weak Growth
Loss-making · -2.6% net margin
Low debt · generates free cash flow
Trails peers (4/11)
Narrow moat 5/100
Evidence: Medium Range HK$0.1661 – HK$0.2895 Share as image

Fair value as of: Aug 15, 2026

From 11 valuation models · updated yesterday

Share price −3.7% over the past month.

A solid business, but screening 12% overvalued on our models.

What matters now

  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from HK$0.1661 (bear) to HK$0.2895 (bull), base HK$0.2278. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 52/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

HK$0.8470 HK$0.2500 Fair Value HK$0.2278 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 15, 2026.

How to read this chart

60‑month range HK$0.2500 – HK$0.8470 · fair‑value band HK$0.1661 – HK$0.2895 · the HK$0.2600 price screens above the HK$0.2278 fair value. Dashed = 300-day average. As of Aug 15, 2026.

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Analysis

Tao Heung Holdings (0573) currently trades at HK$0.2600, while our model-based Fair Value estimate is HK$0.2278, implying the stock looks roughly 12.4% overvalued today. The Quality Score stands at 52/100 (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: medium).

Over the trailing twelve months, Tao Heung Holdings generated revenue of HK$2.3B at a net margin of -2.6%. Revenue grew 3.5% year over year. It earns a return on equity of -5.2%. Net debt stands at HK$227M. Fundamentals as of Aug 15, 2026

Our scenario range runs from HK$0.1661 (bear case) to HK$0.2895 (bull case); at HK$0.2600, the current price sits within 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 35% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -51% fair-value upside, at -12%, 0573 screens cheaper 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
Growth DCF HK$1.69 HK$2.05 HK$2.58 80
Rev-Margin DCF HK$1.78 HK$2.51 HK$3.41 74
EV/EBITDA HK$2.44 HK$3.19 HK$3.93 54
All 11 models by family
DCF Models
FCF DCF HK$1.66 HK$2.04 HK$2.65 38
Owner Earnings HK$1.29 HK$1.57 HK$2.03 31
5Y Revenue Exit HK$1.78 HK$2.47 HK$3.48 39
5Y EBITDA Exit HK$1.90 HK$2.68 HK$3.71 41
10Y Revenue Exit HK$1.67 HK$2.12 HK$2.60 36
10Y EBITDA Exit HK$1.77 HK$2.24 HK$2.72 37
Multiples
EV/EBITDA HK$2.44 HK$3.19 HK$3.93 54
EV/Revenue HK$2.04 HK$2.83 HK$3.62 43
Asset-Based
NCAV (Graham) HK$0.5400 HK$0.7200 HK$1.07 50
Growth DCF
Growth DCF HK$1.69 HK$2.05 HK$2.58 80
Rev-Margin DCF HK$1.78 HK$2.51 HK$3.41 74

Widest divergence: Multiples (HK$2.83) versus Asset-Based (HK$0.7200). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$2.3B
Revenue growth (YoY) +3.5%
Net margin -2.6%
Return on equity -5.2%
Free cash flow HK$206M FY2025
Operating margin -1.2%
More key figures
EPS (TTM) HK$-0.0400
EPS growth (YoY) -88.0%
Net debt HK$227M FY2025

Figures from reported company fundamentals · as of Aug 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 55 · Market factors (momentum, volatility) 33

Profitability 24
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 66
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 14
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

Tao Heung Holdings Limited, an investment holding company, operates a chain of restaurants and bakeries in Hong Kong, and Chinese mainland. The company engages in the provision of food catering services; and production, sale, and distribution of food products and other items related to restaurant operations; and provision of poultry farm operations.

Full company description

Tao Heung Holdings Limited, an investment holding company, operates a chain of restaurants and bakeries in Hong Kong, and Chinese mainland. The company engages in the provision of food catering services; and production, sale, and distribution of food products and other items related to restaurant operations; and provision of poultry farm operations. It also slaughters, processes, and sells livestock; produces and retails bakery products; and provides management and promotion. In addition, the company engages in the property investment activities. It operates restaurants under Tao Heung, Tao Heung Tea House, Pier 88, Tao Square, Boat One, Hak Ka Hut, HAKKA Bistro, Chao Inn, Chung's House, Chung's Cuisine/Chung's Kitchen, Cheers Palace, Grand Ballroom, and Tai Cheong Bakery brands. Tao Heung Holdings Limited was founded in 2005 and is based in Tai Po, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tao Heung Holdings reported revenue of HK$2.3B in FY2025 versus HK$2.8B in FY2021, a compound −4.9%/yr. Reported net income was −HK$59.9M in FY2025.

Growth Quality 26/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$2.3B
Latest YoY
−4.4%
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.
−1.2%
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.
−0.6%
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.
+3.5%
Revenue −4.9%/yr
FY21 HK$2.8B
FY22 HK$2.4B
FY23 HK$2.9B
FY24 HK$2.4B
FY25 HK$2.3B
Net income
FY21 −HK$21.2M
FY22 −HK$143M
FY23 HK$73.7M
FY24 −HK$52.8M
FY25 −HK$59.9M

0573 screens 12% overvalued. Compare with McDonald's Corporation →

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Cite: Fair Value Calculator (2026). "Tao Heung Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0573

Peer Group

Restaurants · 226 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 52 · Below median
Fair Value upside −12% · Below median
Return on assets -1% · Bottom 25%
Net margin (TTM) -3% · Below median
Operating margin (TTM) -1% · Bottom 25%
Revenue growth 4% · Below median
Dividend yield (TTM) 11.1% · Top 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Restaurants median · lower = cheaper

P/S (TTM) 0.02× · Cheaper than 75% of peers
P/FCF 0.2× · 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 18 · sector 22
FUTURE 18 · sector 19
PAST 0 · sector 16
HEALTH 99 · sector 97
DIVIDEND 100 · sector 71

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 Restaurants stocks, each showing price versus our Fair Value estimate (as of Aug 15, 2026).

Stock Price Fair Value vs Fair Value
McDonald's Corporation MCDS C$24.01 C$10.84 -55%
Starbucks Corporation SBUX $108.49 $35.83 -67%
Chipotle Mexican Grill, Inc CMG $32.00 $17.92 -44%
Yum! Brands, Inc YUM $150.34 $58.17 -61%
Restaurant Brands International Inc QSR C$104.50 C$36.37 -65%
Darden Restaurants, Inc DRI $218.90 $173.68 -21%
Yum China Holdings YUMC $47.90 $54.27 +13%
Texas Roadhouse, Inc TXRH $214.28 $104.89 -51%
Dutch Bros Inc BROS $51.02 $12.80 -75%
Domino's Pizza, Inc DPZ $353.72 $227.31 -36%

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Frequently asked questions

Is Tao Heung Holdings (0573) overvalued or undervalued?
As of Aug 15, 2026, our model estimates a fair value of HK$0.2278 versus a price of HK$0.2600, about −12% (overvalued).
What is the fair value of 0573?
Our model-based fair value for Tao Heung Holdings is HK$0.2278 (as of Aug 15, 2026), built from audited fundamentals. The current price is HK$0.2600.
What is the quality score of 0573?
Tao Heung Holdings has a Quality Score of 52/100. 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 Tao Heung Holdings (0573)?
Tao Heung Holdings reported trailing-twelve-month revenue of about HK$2.3B (latest available figure, as of Aug 15, 2026).
What is the net profit margin of 0573?
The net profit margin of Tao Heung Holdings is about -2.6%, 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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