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Asia Financial Holdings (0662) Fair Value & Analysis

Financial Services · HK · Market cap HK$4.3B

AF Asia Financial Holdings 0662 · HK
PriceHK$4.75
Fair ValueHK$9.40
Upside+98.1%
Quality60/100
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Mixed Growth
Highly profitable · 27.5% net margin
Low debt · negative free cash flow
4.87% dividend yield
Ranks above peers (12/14)
Moderate moat 60/100
Evidence: High Range HK$7.05 – HK$11.75 Share as image

Fair value as of: Aug 13, 2026

From 4 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$9.26 to HK$9.40 (+1.5%) since Aug 5, 2026. Share price +2.5% over the past month.

A solid business, screening 98% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$7.05). The market is more pessimistic than our downside scenario.
  • Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

HK$4.90 HK$2.64 Fair Value HK$9.40 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$2.64 – HK$4.90 · fair‑value band HK$7.05 – HK$11.75 · the HK$4.75 price screens below the HK$9.40 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Asia Financial Holdings (0662) currently trades at HK$4.75, while our model-based Fair Value estimate is HK$9.40, implying the stock looks roughly 98.1% undervalued today. The Quality Score stands at 60/100 (solid quality), in the Financial Services 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, Asia Financial Holdings generated revenue of HK$3.8B at a net margin of 27.5%. Revenue grew 10.7% year over year. It earns a return on equity of 8.3%. The balance sheet holds a net cash position of HK$3.2B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$7.05 (bear case) to HK$11.75 (bull case); at HK$4.75, 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 11% below its 52-week high and 28% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 34% fair-value upside, at 98%, 0662 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
Residual Income HK$12.03 HK$12.75 HK$13.91 76
P/E Multiple HK$11.11 HK$14.81 HK$18.52 63
P/B Multiple HK$14.53 HK$19.37 HK$24.21 55
All 4 models by family
Multiples
P/E Multiple HK$11.11 HK$14.81 HK$18.52 63
P/B Multiple HK$14.53 HK$19.37 HK$24.21 55
Asset-Based
NCAV (Graham) HK$7.39 HK$9.91 HK$14.79 50
Economic Profit
Residual Income HK$12.03 HK$12.75 HK$13.91 76

Widest divergence: Multiples (HK$14.81) versus Asset-Based (HK$9.91). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$3.8B
Revenue growth (YoY) +10.7%
Net margin 27.5%
Return on equity 8.3%
Free cash flow −HK$115M FY2025
P/E ratio 4.1 as of Jul 2, 2026
More key figures
Operating margin 25.0%
EPS (TTM) HK$0.4600
Dividend yield 4.9%
EPS growth (YoY) +121%
Net cash HK$3.2B FY2025

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

Quality Score breakdown

Overall quality 60/100

Of which business quality 57 · Market factors (momentum, volatility) 59

Profitability 44
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 51
Distance to the 52-week high (market factor)
Net Issuance 86
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

Asia Financial Holdings Limited, an investment holding company, engages in provision of underwriting of general and life insurance in Hong Kong, Macau, and Mainland China. The company operates in two segments, Insurance and Corporate. It is involved in securities trading, holding, and other businesses; and providing nominee, and health care services.

Full company description

Asia Financial Holdings Limited, an investment holding company, engages in provision of underwriting of general and life insurance in Hong Kong, Macau, and Mainland China. The company operates in two segments, Insurance and Corporate. It is involved in securities trading, holding, and other businesses; and providing nominee, and health care services. The company also engages in the property investment activities. The company was incorporated in 1991 and is headquartered in Central, Hong Kong. Asia Financial Holdings Limited operates as a subsidiary of Claremont Capital Holdings Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Asia Financial Holdings reported revenue of HK$3.6B in FY2025 versus HK$1.8B in FY2021, a compound +19.6%/yr. Reported net income was HK$1.1B in FY2025, compounding +11.7%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$3.6B
Latest YoY
+36.5%
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.
+17.0%
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.
+21.8%
Avg. growth/yr (25Y) 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.
+3.2%
Revenue +19.6%/yr
FY21 HK$1.8B
FY22 HK$2.2B
FY23 HK$2.1B
FY24 HK$2.6B
FY25 HK$3.6B
Net income +11.7%/yr
FY21 HK$678M
FY22 HK$123M
FY23 HK$347M
FY24 HK$647M
FY25 HK$1.1B
Character of growth · EPS growth decomposed (2014-2025) +10.4 % p.a.
Revenue per share +11.5 pp

of which total revenue +10.4 pp · buybacks/dilution +1.1 pp

EBIT margin −1.3 pp
Tax rate +0.2 pp
Residual (interest, one-offs) +0.0 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).

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Cite: Fair Value Calculator (2026). "Asia Financial Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0662

Peer Group

Insurance - Life · 96 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 +98% · Top 25%
Return on equity (TTM) 8% · Below median
Return on assets 3% · Top 25%
Net margin (TTM) 28% · Top 25%
Operating margin (TTM) 25% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 4.9% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Insurance - Life median · lower = cheaper

P/E (TTM) 4.1× · Cheaper than 75% of peers
P/B 0.31× · Cheaper than 75% of peers
P/S (TTM) 1.12× · Pricier than median
EV/EBITDA 1.2× · Cheaper than 75% of peers
PEG 0.66× · 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 100 · sector 26
FUTURE 54 · sector 44
PAST 33 · sector 43
HEALTH 100 · sector 85
DIVIDEND 97 · sector 56

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 Insurance - Life stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Life Insurance Company 601628 ¥37.33 ¥49.98 +34%
Ping An Insurance (Group) Company 601318 ¥52.60 ¥84.72 +61%
Manulife Financial Corporation 0945 HK$343.40 HK$143.17 -58%
Life Insurance Corporation LICI ₹412.15 ₹392.93 -5%
China Pacific Insurance (Group) Co 601601 ¥30.48 ¥57.51 +89%
Samsung Life Insurance Co 032830 302,500 KRW 191,293 KRW -37%
Prudential plc PUKN 545.00 MXN 499.36 MXN -8%
New China Life Insurance Company 601336 ¥58.83 ¥99.92 +70%
SBI Life Insurance Company SBILIFE ₹1,830 ₹293.11 -84%
Cathay Financial Holding 2882B 59.00 TWD 107.71 TWD +83%

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Frequently asked questions

Is Asia Financial Holdings (0662) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$9.40 versus a price of HK$4.75, about +98% (undervalued).
What is the fair value of 0662?
Our model-based fair value for Asia Financial Holdings is HK$9.40 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$4.75.
What is the quality score of 0662?
Asia Financial Holdings has a Quality Score of 60/100. 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 Asia Financial Holdings (0662)?
Asia Financial Holdings reported trailing-twelve-month revenue of about HK$3.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0662?
The net profit margin of Asia Financial Holdings is about 27.5%, meaning it keeps roughly 27.5% of revenue as net income. Based on the latest reported figures.
Does Asia Financial Holdings pay a dividend?
Asia Financial Holdings currently shows a dividend yield of about 4.87% relative to its recent price (as of Aug 13, 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.

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