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Ares Asia Limited (0645) Fair Value & Analysis

Energy · HK · Market cap HK$86.7M

AA Ares Asia Limited 0645 · HK
PriceHK$0.1770
Fair ValueHK$0.2800
Upside+58.2%
Quality62/100
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Weak Growth
Loss-making · -10.6% net margin
Moderate debt · negative free cash flow
Trails peers (3/11)
Narrow moat 3/100
Evidence: Low Range HK$0.1900 – HK$0.3600 Share as image

Fair value as of: Aug 13, 2026

From 3 valuation models · updated 2 days ago

Share price −1.7% over the past month.

A solid business, screening 58% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$0.1900). The market is more pessimistic than our downside scenario.
  • 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 quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (HK$0.1900 to HK$0.3600) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$1.60 HK$0.0480 Fair Value HK$0.2800 Aug 2015 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$0.0480 – HK$1.60 · fair‑value band HK$0.1900 – HK$0.3600 · the HK$0.1770 price screens below the HK$0.2800 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Ares Asia Limited (0645) currently trades at HK$0.1770, while our model-based Fair Value estimate is HK$0.2800, implying the stock looks roughly 58.2% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Energy 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: low), always confirm before acting.

Over the trailing twelve months, Ares Asia Limited generated revenue of HK$7.0M at a net margin of -10.6%. Revenue declined 85.1% year over year. It earns a return on equity of -17.5%. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1900 (bear case) to HK$0.3600 (bull case); at HK$0.1770, the current price sits below 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 16% below its 52-week high and 113% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -5% fair-value upside, at 58%, 0645 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
Gordon GGM HK$0.1800 HK$0.2600 HK$0.3300 70
DDM Multi-Stage HK$0.1800 HK$0.2400 HK$0.2900 61
NCAV (Graham) HK$0.0100 HK$0.0100 50
All 3 models by family
Dividend Discount
Gordon GGM HK$0.1800 HK$0.2600 HK$0.3300 70
DDM Multi-Stage HK$0.1800 HK$0.2400 HK$0.2900 61
Asset-Based
NCAV (Graham) HK$0.0100 HK$0.0100 50

Widest divergence: Dividend Discount (HK$0.2400) versus Asset-Based (HK$0.0100). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) HK$7.0M
Revenue growth (YoY) -85.1%
Net margin -10.6%
Return on equity -17.5%
Free cash flow −HK$4.1M FY2025
Operating margin -10.7%
More key figures
Net cash HK$305K FY2026

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

Quality Score breakdown

Overall quality 62/100

Of which business quality 62 · Market factors (momentum, volatility) 53

Profitability 20
Margins and returns on capital today
Quality Growth 84
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 69
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 63
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

Ares Asia Limited, an investment holding company, engages in the trading of coal and other commodities in Mainland China, Hong Kong, Singapore, and Vietnam. The company was formerly known as KTP Holdings Limited and changed its name to Ares Asia Limited in April 2012. Ares Asia Limited was incorporated in 1993 and is headquartered in Kowloon, Hong Kong.

Full company description

Ares Asia Limited, an investment holding company, engages in the trading of coal and other commodities in Mainland China, Hong Kong, Singapore, and Vietnam. The company was formerly known as KTP Holdings Limited and changed its name to Ares Asia Limited in April 2012. Ares Asia Limited was incorporated in 1993 and is headquartered in Kowloon, Hong Kong. The company is a subsidiary of Reignwood International Holdings Company Limited.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Ares Asia Limited reported revenue of HK$6.9M in FY2026 versus HK$102M in FY2022, a compound −48.9%/yr. Reported net income was −HK$737K in FY2026.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$6.9M
Latest YoY
+109.5%
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.
−49.1%
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.
−43.2%
Avg. growth/yr (26Y) 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.
−17.3%
Revenue −48.9%/yr
FY22 HK$102M
FY23 HK$52.6M
FY24 HK$70.4M
FY25 HK$3.3M
FY26 HK$6.9M
Net income
FY22 −HK$2.1M
FY23 −HK$829K
FY24 −HK$1.3M
FY25 −HK$2.4M
FY26 −HK$737K

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Cite: Fair Value Calculator (2026). "Ares Asia Limited Fair Value". https://www.fairvalue-calculator.com/stock/0645

Peer Group

Thermal Coal · 99 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 62 · Top 25%
Fair Value upside +58% · Top 25%
Return on assets -19% · Bottom 25%
Net margin (TTM) -11% · Bottom 25%
Operating margin (TTM) -11% · Bottom 25%
Revenue growth -85% · Bottom 25%
Dividend yield (TTM) 15.1% · Top 25%
Debt / equity 1.15× · Higher than 75% of peers

Valuation Multiples vs Thermal Coal median · lower = cheaper

P/B 2.86× · Pricier than 75% of peers
P/S (TTM) 1.58× · 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 100 · sector 29
FUTURE 0 · sector 0
PAST 0 · sector 21
HEALTH 43 · sector 93
DIVIDEND 100 · sector 64

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Coal Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

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

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Frequently asked questions

Is Ares Asia Limited (0645) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.2800 versus a price of HK$0.1770, about +58% (undervalued).
What is the fair value of 0645?
Our model-based fair value for Ares Asia Limited is HK$0.2800 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.1770.
What is the quality score of 0645?
Ares Asia Limited has a Quality Score of 62/100. 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 Ares Asia Limited (0645)?
Ares Asia Limited reported trailing-twelve-month revenue of about HK$7.0M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0645?
The net profit margin of Ares Asia Limited is about -10.6%, 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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