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Hanison Construction Holdings (0896) Fair Value & Analysis

Industrials · HK · Market cap HK$267M

HC Hanison Construction Holdings 0896 · HK
PriceHK$0.2750
Fair ValueHK$0.1621
Upside-41.1%
Quality45/100
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Expensive Growth
Loss-making · -21.3% net margin
Low debt · negative free cash flow
Trails peers (1/9)
Narrow moat 4/100
Evidence: Low Range HK$0.1210 – HK$0.2427 Share as image

Fair value as of: Aug 13, 2026

From 3 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$0.1776 to HK$0.1621 (−8.7%) since Aug 5, 2026. Share price −1.8% over the past month.

Below-average quality, and screening another 41% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.2427). The favourable scenario is already priced in.
  • 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 but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (HK$0.1210 to HK$0.2427) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$1.19 HK$0.2120 Fair Value HK$0.1621 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$0.2120 – HK$1.19 · fair‑value band HK$0.1210 – HK$0.2427 · the HK$0.2750 price screens above the HK$0.1621 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hanison Construction Holdings (0896) currently trades at HK$0.2750, while our model-based Fair Value estimate is HK$0.1621, implying the stock looks roughly 41.1% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Industrials 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: low).

Over the trailing twelve months, Hanison Construction Holdings generated revenue of HK$1.8B at a net margin of -21.3%. Revenue declined 21.7% year over year. It earns a return on equity of -11.1%. Net debt stands at HK$1.5B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1210 (bear case) to HK$0.2427 (bull case); at HK$0.2750, the current price sits above 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 8% below its 52-week high and 31% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at -41%, 0896 screens richer 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
EV/EBITDA HK$0.0300 HK$0.1300 HK$0.2400 54
EV/EBIT HK$0.0200 53
NCAV (Graham) HK$1.61 HK$2.16 HK$3.23 50
All 3 models by family
Multiples
EV/EBIT HK$0.0200 53
EV/EBITDA HK$0.0300 HK$0.1300 HK$0.2400 54
Asset-Based
NCAV (Graham) HK$1.61 HK$2.16 HK$3.23 50

Widest divergence: Asset-Based (HK$2.16) versus Multiples (HK$0.1300). Highest evidence: EV/EBITDA (54).

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Key figures & financial health

Revenue (TTM) HK$1.8B
Revenue growth (YoY) -21.7%
Net margin -21.3%
Return on equity -11.1%
Free cash flow −HK$361M FY2025
Operating margin -2.7%
More key figures
EPS (TTM) HK$-0.3600
EPS growth (YoY) -36.1%
Net debt HK$1.5B FY2025

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

Quality Score breakdown

Overall quality 45/100

Of which business quality 43 · Market factors (momentum, volatility) 58

Profitability 4
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 16
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 92
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

Hanison Construction Holdings Limited, an investment holding company, engages in the construction, decoration, maintenance, and building materials business in Hong Kong.

Full company description

Hanison Construction Holdings Limited, an investment holding company, engages in the construction, decoration, maintenance, and building materials business in Hong Kong. It operates through seven segments: Construction; Interior and Renovation Works; Design, Supply and Installation of Building Materials; Sales of Health Products; Property Investment; Property Development; and Provision of Property Agency and Management Services. The company operates as a builder for residential, commercial, and industrial properties, as well as educational and recreational facilities; and provides design-and-build services. It is also involved in supplying and installing of building materials, such as kitchen cabinets, timber flooring, engineering flooring, suspended ceiling systems, Firex Board, and polyboards; and supplying plumbing pipes and tubes, fittings, and other related accessories, including galvanized pipes, black pipes, stainless steel pipes and tubes, and polyethylene pipes. In addition, the company engages in the maintenance and renovation of clubhouses, shopping arcades, office premises, residential properties, industrial buildings, and institutional facilities; and property/project development consisting of land acquisition/feasibility study, design, construction, sales, and marketing services. Further, the company provides property agency and management services, such as property management, rental collection, agency, and leasing services; and sells health supplements, health care equipment, and traditional Chinese medicine. Additionally, it provides plant maintenance services. Hanison Construction Holdings Limited was founded in 1989 and is headquartered in Sha Tin, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hanison Construction Holdings reported revenue of HK$2.0B in FY2025 versus HK$1.5B in FY2021, a compound +8.1%/yr. Reported net income was −HK$295M in FY2025.

Growth Quality 44/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$2.0B
Latest YoY
+23.1%
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.
+11.3%
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.
+15.7%
Avg. growth/yr (23Y) 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.
+5.0%
Revenue +8.1%/yr
FY21 HK$1.5B
FY22 HK$1.4B
FY23 HK$1.2B
FY24 HK$1.6B
FY25 HK$2.0B
Net income
FY21 HK$275M
FY22 HK$154M
FY23 −HK$38.4M
FY24 −HK$216M
FY25 −HK$295M

0896 screens 41% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Hanison Construction Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0896

Peer Group

Engineering & Construction · 838 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 45 · Below median
Fair Value upside −42% · Below median
Return on assets -0% · Bottom 25%
Net margin (TTM) -21% · Bottom 25%
Operating margin (TTM) -3% · Bottom 25%
Revenue growth -22% · Bottom 25%
Debt / equity 0.23× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/S (TTM) 0.02× · 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 0 · sector 14
FUTURE 0 · sector 14
PAST 0 · sector 26
HEALTH 89 · sector 94
DIVIDEND 0 · sector 42

VALUE 0: the price sits above our fair-value range.

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Hyundai Engineering & Construction Co 000720 113,700 KRW 61,453 KRW -46%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹230.00 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 45,400 KRW 43,924 KRW -3%

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Frequently asked questions

Is Hanison Construction Holdings (0896) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.1621 versus a price of HK$0.2750, about −41% (overvalued).
What is the fair value of 0896?
Our model-based fair value for Hanison Construction Holdings is HK$0.1621 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.2750.
What is the quality score of 0896?
Hanison Construction Holdings has a Quality Score of 45/100. 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 Hanison Construction Holdings (0896)?
Hanison Construction Holdings reported trailing-twelve-month revenue of about HK$1.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0896?
The net profit margin of Hanison Construction Holdings is about -21.3%, 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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