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Auto Italia Holdings (0720) Fair Value & Analysis

Real Estate · HK · Market cap HK$2.2B

AI Auto Italia Holdings 0720 · HK
PriceHK$0.2550
Fair ValueHK$0.6800
Upside+166.7%
Quality38/100
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Mixed Growth
Loss-making · -98.2% net margin
High debt · negative free cash flow
Trails peers (3/11)
Narrow moat 8/100
Evidence: Low Range HK$0.3300 – HK$1.09 Share as image

Fair value as of: Aug 13, 2026

From 3 valuation models · updated 2 days ago

Share price −21.5% over the past month.

Below-average quality, screening 167% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (38/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$0.3300). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (HK$0.3300 to HK$1.09). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

HK$0.4150 HK$0.0540 Fair Value HK$0.6800 Jul 2019 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$0.0540 – HK$0.4150 · fair‑value band HK$0.3300 – HK$1.09 · the HK$0.2550 price screens below the HK$0.6800 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Auto Italia Holdings (0720) currently trades at HK$0.2550, while our model-based Fair Value estimate is HK$0.6800, implying the stock looks roughly 166.7% undervalued today. The Quality Score stands at 38/100 (below-average quality), in the Real Estate 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, Auto Italia Holdings generated revenue of HK$96.4M at a net margin of -98.2%. Revenue grew 22.6% year over year. It earns a return on equity of -42.1%. Net debt stands at HK$481M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.3300 (bear case) to HK$1.09 (bull case); at HK$0.2550, 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 43% below its 52-week high and 95% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at 15% fair-value upside, at 167%, 0720 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$0.3100 HK$0.6300 HK$0.9500 70
DDM Multi-Stage HK$0.3100 HK$0.5300 HK$0.6600 61
NCAV (Graham) HK$0.0100 HK$0.0100 HK$0.0200 50
All 3 models by family
Dividend Discount
Gordon GGM HK$0.3100 HK$0.6300 HK$0.9500 70
DDM Multi-Stage HK$0.3100 HK$0.5300 HK$0.6600 61
Asset-Based
NCAV (Graham) HK$0.0100 HK$0.0100 HK$0.0200 50

Widest divergence: Dividend Discount (HK$0.5300) versus Asset-Based (HK$0.0100). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) HK$96.4M
Revenue growth (YoY) +22.6%
Net margin -98.2%
Return on equity -42.1%
Free cash flow −HK$4.3M FY2025
Operating margin -16.3%
More key figures
EPS growth (YoY) -2.2%
Net debt HK$481M FY2025

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

Quality Score breakdown

Overall quality 38/100

Of which business quality 34 · Market factors (momentum, volatility) 53

Profitability 1
Margins and returns on capital today
Quality Growth 70
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 6
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 70
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

Auto Italia Holdings Limited, an investment holding company, engages in the marketing, distribution, and provision of after-sales service of Italian branded cars in the People's Republic of China, Europe, Africa, and Hong Kong. It operates through Cars, Property Investment, and Financial Investments and Services segments.

Full company description

Auto Italia Holdings Limited, an investment holding company, engages in the marketing, distribution, and provision of after-sales service of Italian branded cars in the People's Republic of China, Europe, Africa, and Hong Kong. It operates through Cars, Property Investment, and Financial Investments and Services segments. The company engages in the trading of cars and related accessories; provision of after sales services; research and development activities; and sales and export of electric vehicles and related accessories. It also invests in securities; and provides financing and corporate finance services, as well as engages in financial investments and services. The company was formerly known as Wo Kee Hong (Holdings) Limited and changed its name to Auto Italia Holdings Limited in September 2012. Auto Italia Holdings Limited was incorporated in 1989 and is based in Wong Chuk Hang, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Auto Italia Holdings reported revenue of HK$96.4M in FY2025 versus HK$24.7M in FY2021, a compound +40.6%/yr. Reported net income was −HK$94.7M in FY2025.

Growth Quality 36/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$96.4M
Latest YoY
+207.9%
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.
+50.8%
Avg. growth/yr (27Y) 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.
−8.8%
Revenue +40.6%/yr
FY21 HK$24.7M
FY22 HK$28.1M
FY23 HK$47.5M
FY24 HK$31.3M
FY25 HK$96.4M
Net income
FY21 −HK$7.1M
FY22 −HK$63.4M
FY23 −HK$179M
FY24 −HK$102M
FY25 −HK$94.7M

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Cite: Fair Value Calculator (2026). "Auto Italia Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0720

Peer Group

Real Estate Services · 528 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 38 · Bottom 25%
Fair Value upside +167% · Top 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -98% · Bottom 25%
Operating margin (TTM) -16% · Bottom 25%
Revenue growth 23% · Top 25%
Dividend yield (TTM) 9.9% · Top 25%
Debt / equity 1.72× · Higher than 75% of peers

Valuation Multiples vs Real Estate Services median · lower = cheaper

P/B 2.24× · Pricier than 75% of peers
P/S (TTM) 2.92× · 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 34
FUTURE 100 · sector 10
PAST 0 · sector 16
HEALTH 14 · sector 85
DIVIDEND 100 · sector 59

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 Real Estate Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Plaza S.A MALLPLAZA 3,989 CLP 4,571 CLP +15%
PT Solusi Tunas Pratama Tbk SUPR 43,850 IDR 15,049 IDR -66%
Cencosud Shopping S.A CENCOMALLS 2,412 CLP 2,976 CLP +23%
PT Sarana Menara Nusantara Tbk. owns and TOWR 392.00 IDR 1,012 IDR +158%
PT Metropolitan Kentjana Tbk MKPI 22,000 IDR 19,160 IDR -13%
PT Bangun Kosambi Sukses Tbk, CBDK 3,610 IDR 3,464 IDR -4%
IRSA Inversiones y Representaciones Sociedad Anónima, IRSA 2,495 ARS 2,990 ARS +20%
PT Plaza Indonesia Realty Tbk PLIN 2,510 IDR 2,698 IDR +7%
PT MNC Tourism Indonesia Tbk, KPIG 74.00 IDR 122.12 IDR +65%
PT Indonesian Paradise Property Tbk INPP 770.00 IDR 291.52 IDR -62%

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Frequently asked questions

Is Auto Italia Holdings (0720) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.6800 versus a price of HK$0.2550, about +167% (undervalued).
What is the fair value of 0720?
Our model-based fair value for Auto Italia Holdings is HK$0.6800 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.2550.
What is the quality score of 0720?
Auto Italia Holdings has a Quality Score of 38/100. 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 Auto Italia Holdings (0720)?
Auto Italia Holdings reported trailing-twelve-month revenue of about HK$96.4M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0720?
The net profit margin of Auto Italia Holdings is about -98.2%, 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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