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Chiho Environmental Group (0976) Fair Value & Analysis

Industrials · HK · Market cap HK$690M

CE Chiho Environmental Group 0976 · HK
PriceHK$0.4300
Fair ValueHK$0.4100
Upside-4.7%
Quality49/100
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Weak Growth
Loss-making · -0.1% net margin
Low debt · negative free cash flow
Mixed vs. peers (4/9)
Narrow moat 13/100
Evidence: Medium Range HK$0.1700 – HK$0.6600 Share as image

Fair value as of: Aug 13, 2026

From 9 valuation models · updated 2 days ago

Below-average quality, currently priced close to our fair value.

What matters now

  • The model range is unusually wide (HK$0.1700 to HK$0.6600). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
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Price vs Fair Value (5 years)

HK$1.63 HK$0.2950 Fair Value HK$0.4100 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$0.2950 – HK$1.63 · fair‑value band HK$0.1700 – HK$0.6600 · the HK$0.4300 price screens above the HK$0.4100 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Chiho Environmental Group (0976) currently trades at HK$0.4300, while our model-based Fair Value estimate is HK$0.4100, implying the stock looks roughly 4.7% fairly valued today. The Quality Score stands at 49/100 (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: medium).

Over the trailing twelve months, Chiho Environmental Group generated revenue of HK$16.5B at a net margin of -0.1%. Revenue grew 0.4% year over year. It earns a return on equity of -0.6%. Net debt stands at HK$898M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1700 (bear case) to HK$0.6600 (bull case); at HK$0.4300, the current price sits within 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 near its 52-week high, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -59% fair-value upside, at -5%, 0976 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
ROIC Compounder HK$0.4300 HK$0.4700 HK$0.5000 72
Gordon GGM HK$0.1100 HK$0.1900 HK$0.2700 70
DDM Multi-Stage HK$0.1100 HK$0.1800 HK$0.2100 61
All 9 models by family
DCF Models
Owner Earnings HK$1.27 HK$2.02 HK$3.17 31
Earnings-Based
EPV HK$0.4300 HK$0.4700 HK$0.5000 59
Dividend Discount
Gordon GGM HK$0.1100 HK$0.1900 HK$0.2700 70
DDM Multi-Stage HK$0.1100 HK$0.1800 HK$0.2100 61
Multiples
EV/EBIT HK$0.8900 HK$1.13 HK$1.37 53
EV/EBITDA HK$2.50 HK$3.28 HK$4.06 54
EV/Revenue HK$0.7900 HK$1.06 HK$1.33 43
Asset-Based
NCAV (Graham) HK$1.54 HK$2.06 HK$3.07 50
Economic Profit
ROIC Compounder HK$0.4300 HK$0.4700 HK$0.5000 72

Widest divergence: Asset-Based (HK$2.06) versus Dividend Discount (HK$0.1800). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) HK$16.5B
Revenue growth (YoY) +0.4%
Net margin -0.1%
Return on equity -0.6%
Free cash flow −HK$260M FY2023
Operating margin 0.7%
More key figures
Net debt HK$898M FY2023

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

Quality Score breakdown

Overall quality 49/100

Of which business quality 50 · Market factors (momentum, volatility) 56

Profitability 33
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 42
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 33
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

Chiho Environmental Group Limited, an investment holding company, engages in the metal recycling business in Asia, Europe, and North America. The company is involved in the recycling of mixed metal into copper, aluminum, and ferrous metals.

Full company description

Chiho Environmental Group Limited, an investment holding company, engages in the metal recycling business in Asia, Europe, and North America. The company is involved in the recycling of mixed metal into copper, aluminum, and ferrous metals. It also recycles end-of-life vehicles, lithium-ion battery, oil and lubricants, and electrical and electronic equipment wastes; and produces secondary aluminum ingots from aluminum scraps. In addition, it wholesales metal scrap without processing; processes and sells metal scrap and lubricating oil; and provides industrial and logistics services; as well as purchases and administers real estate properties. The company was formerly known as Chiho-Tiande Group Limited and changed its name to Chiho Environmental Group Limited in June 2017. Chiho Environmental Group Limited was founded in 1995 and is headquartered in Central, Hong Kong. Chiho Environmental Group Limited is a subsidiary of USUM Investment Group Hong Kong Limited.

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

Revenue & earnings trend

FY2019 – FY2023 · reported fiscal years

Chiho Environmental Group reported revenue of HK$16.5B in FY2023 versus HK$15.4B in FY2019, a compound +1.8%/yr. Reported net income was −HK$9.3M in FY2023.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2023)
HK$16.5B
Latest YoY
−15.8%
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.
+7.2%
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.
−4.7%
Avg. growth/yr (16Y) 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.
+14.8%
Revenue +1.8%/yr
FY19 HK$15.4B
FY20 HK$13.4B
FY21 HK$22.0B
FY22 HK$19.6B
FY23 HK$16.5B
Net income
FY19 −HK$134M
FY20 −HK$864M
FY21 HK$702M
FY22 HK$265M
FY23 −HK$9.3M

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Cite: Fair Value Calculator (2026). "Chiho Environmental Group Fair Value". https://www.fairvalue-calculator.com/stock/0976

Peer Group

Metal Fabrication · 251 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 49 · Above median
Fair Value upside −5% · Above median
Return on assets 0% · Below median
Net margin (TTM) -0% · Below median
Operating margin (TTM) 1% · Below median
Revenue growth 0% · Below median
Dividend yield (TTM) 3.2% · Top 25%
Debt / equity 0.02× · Lower 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 27 · sector 0
FUTURE 2 · sector 34
PAST 0 · sector 19
HEALTH 99 · sector 95
DIVIDEND 64 · sector 27

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.

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Frequently asked questions

Is Chiho Environmental Group (0976) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.4100 versus a price of HK$0.4300, about −5% (fairly valued).
What is the fair value of 0976?
Our model-based fair value for Chiho Environmental Group is HK$0.4100 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.4300.
What is the quality score of 0976?
Chiho Environmental Group has a Quality Score of 49/100. 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 Chiho Environmental Group (0976)?
Chiho Environmental Group reported trailing-twelve-month revenue of about HK$16.5B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0976?
The net profit margin of Chiho Environmental Group is about -0.1%, 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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