1038 (1038) Fair Value & Analysis

Utilities · Market cap HK$150B

1 1038 1038 · HK

PriceHK$59.70

Fair ValueHK$44.13

Upside-26.1%

Quality63/100

Evidence: High Range HK$33.13 – HK$50.77

Fair value as of: Jul 2, 2026

From 22 valuation models · updated today

Share price +0.6% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$48.81 – HK$65.30 · fair‑value band HK$33.13 – HK$50.77 · the HK$59.70 price screens above the HK$44.13 fair value. As of Jul 2, 2026.

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Analysis

1038 (1038) currently trades at HK$59.70, while our model-based Fair Value estimate is HK$44.13 — implying the stock looks roughly 26.1% overvalued today. We read business quality at 63/100 (solid quality), in the Utilities 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: high).

Trailing-twelve-month revenue stands at HK$4.8B. Revenue declined 12.1% year over year. It earns a return on equity of 6.1%. Net debt stands at HK$23.6B. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$4.8B

Revenue growth (YoY) -12.1%

Net margin 173%

Return on equity 6.1%

Free cash flow HK$1.9B FY2025

P/E ratio 17.3

More key figures

Operating margin -2.5%

EPS (TTM) HK$1.73

Dividend yield 4.3%

EPS growth (YoY) +3.0%

Net debt HK$23.6B FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 2, 2026. TTM = trailing twelve months.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

1038 reported revenue of HK$4.4B in FY2025 versus HK$7.0B in FY2021, a compound −11.0%/yr. Reported net income was HK$8.7B in FY2025, compounding +3.7%/yr from FY2021.

Revenue −11.0%/yr

FY21 HK$7.0B

FY22 HK$6.6B

FY23 HK$6.0B

FY24 HK$5.0B

FY25 HK$4.4B

Net income +3.7%/yr

FY21 HK$7.5B

FY22 HK$7.7B

FY23 HK$8.0B

FY24 HK$8.1B

FY25 HK$8.7B

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Similar stocks

6 more Utilities - Regulated Electric stocks, each showing price versus our Fair Value estimate (as of Jul 2, 2026).

Stock	Price	Fair Value	vs Fair Value
NextEra Energy, Inc NEE	$86.08	$30.24	-65%
The Southern Company SO	$90.51	$40.76	-55%
Duke Energy Corporation DUK	$121.82	$63.83	-48%
National Grid plc NGG	61,175 ARS	43,418 ARS	-29%
American Electric Power Company A1EP34	R$333.63	R$185.68	-44%
Dominion Energy, Inc D	$68.04	$38.74	-43%

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Frequently asked questions

Is 1038 (1038) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$44.13 versus a price of HK$59.70 — about −26% (overvalued). Model-based estimate, not financial advice.

What is the fair value of 1038?

Our model-based fair value for 1038 is HK$44.13 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$59.70.

What is the quality score of 1038?

1038 has a Quality Score of 63/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 1038 (1038)?

1038 reported trailing-twelve-month revenue of about HK$4.8B (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 1038?

The net profit margin of 1038 is about 173.0%, meaning it keeps roughly 173.0% of revenue as net income. Based on the latest reported figures.

Does 1038 pay a dividend?

1038 currently shows a dividend yield of about 4.33% relative to its recent price (as of Jul 2, 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.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.