0638 (0638) Fair Value & Analysis

Technology · Market cap HK$6.8B

0 0638 0638 · HK

PriceHK$7.55

Fair ValueHK$11.37

Upside+50.6%

Quality35/100

Evidence: High Range HK$8.45 – HK$14.30

Fair value as of: Jul 2, 2026

From 26 valuation models · updated today

Share price −22.4% over the past month.

Price vs Fair Value (8 months)

8‑month range HK$7.55 – HK$19.92 · fair‑value band HK$8.45 – HK$14.30 · the HK$7.55 price screens below the HK$11.37 fair value. As of Jul 2, 2026.

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Analysis

0638 (0638) currently trades at HK$7.55, while our model-based Fair Value estimate is HK$11.37 — implying the stock looks roughly 50.6% undervalued today. We read business quality at 35/100 (below-average quality), in the Technology 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, 0638 generated revenue of HK$6.8B at a net margin of 3.5%. Revenue declined 9.6% year over year. It earns a return on equity of 4.8%. Net debt stands at HK$286M. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$6.8B

Revenue growth (YoY) -9.6%

Net margin 3.5%

Return on equity 4.8%

Free cash flow HK$135M FY2025

Operating margin 1.5%

More key figures

EPS (TTM) HK$0.1409

Dividend yield 3.1%

EPS growth (YoY) -93.0%

Net debt HK$286M FY2023

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

0638 reported revenue of HK$7.0B in FY2025 versus HK$2.3B in FY2021, a compound +31.8%/yr. Reported net income was HK$347M in FY2025, compounding +57.2%/yr from FY2021.

Revenue +31.8%/yr

FY21 HK$2.3B

FY22 HK$1.2B

FY23 HK$1.1B

FY24 HK$7.0B

FY25 HK$7.0B

Net income +57.2%/yr

FY21 HK$56.9M

FY22 −HK$294M

FY23 −HK$212M

FY24 HK$668M

FY25 HK$347M

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Similar stocks

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

Stock	Price	Fair Value	vs Fair Value
Cisco Systems, Inc CSCO	$118.80	$43.05	-64%
Foxconn Industrial Internet Co 601138	¥71.13	¥25.47	-64%
Zhongji Innolight Co 300308	¥1,382	¥223.88	-84%
Eoptolink Technology Inc 300502	¥748.00	¥192.70	-74%
Nokia Oyj NOKIA	291.00 CZK	79.13 CZK	-73%
Motorola Solutions, Inc MSI	$392.23	$190.24	-51%

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Frequently asked questions

Is 0638 (0638) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$11.37 versus a price of HK$7.55 — about +51% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 0638?

Our model-based fair value for 0638 is HK$11.37 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$7.55.

What is the quality score of 0638?

0638 has a Quality Score of 35/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 0638 (0638)?

0638 reported trailing-twelve-month revenue of about HK$6.8B (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 0638?

The net profit margin of 0638 is about 3.5%, meaning it keeps roughly 3.5% of revenue as net income. Based on the latest reported figures.

Does 0638 pay a dividend?

0638 currently shows a dividend yield of about 3.05% 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.