1186 (1186) Fair Value & Analysis

Industrials · Market cap HK$63.0B

1 1186 1186 · HK

PriceHK$4.57

Fair ValueHK$6.77

Upside+48.2%

Quality37/100

Evidence: Medium Range HK$5.39 – HK$8.29

Fair value as of: Jul 2, 2026

From 15 valuation models · updated today

Share price −5.8% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$4.57 – HK$5.98 · fair‑value band HK$5.39 – HK$8.29 · the HK$4.57 price screens below the HK$6.77 fair value. As of Jul 2, 2026.

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Analysis

1186 (1186) currently trades at HK$4.57, while our model-based Fair Value estimate is HK$6.77 — implying the stock looks roughly 48.2% undervalued today. We read business quality at 37/100 (below-average quality), in the Industrials 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: medium) — always confirm before acting.

Over the trailing twelve months, 1186 generated revenue of HK$1.0T at a net margin of 1.8%. Revenue declined 9.8% year over year. It earns a return on equity of 4.7%. Net debt stands at HK$358B. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$1.0T

Revenue growth (YoY) -9.8%

Net margin 1.8%

Return on equity 4.7%

Free cash flow −HK$44.6B FY2025

P/E ratio 3.6

More key figures

Operating margin 4.1%

EPS (TTM) HK$1.15

Dividend yield 6.6%

EPS growth (YoY) -17.6%

Net debt HK$358B FY2025

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

1186 reported revenue of HK$1.0T in FY2025 versus HK$1.0T in FY2021, a compound +0.2%/yr. Reported net income was HK$18.4B in FY2025, compounding −7.1%/yr from FY2021.

Revenue +0.2%/yr

FY21 HK$1.0T

FY22 HK$1.1T

FY23 HK$1.1T

FY24 HK$1.1T

FY25 HK$1.0T

Net income −7.1%/yr

FY21 HK$24.7B

FY22 HK$26.7B

FY23 HK$26.1B

FY24 HK$22.2B

FY25 HK$18.4B

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Similar stocks

6 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 2, 2026).

Stock	Price	Fair Value	vs Fair Value
Larsen & Toubro Limited LTOD	$0.4415	$0.5700	+29%
Samsung C&T Corporation 028260	520,000 KRW	268,469 KRW	-48%
China State Construction Engineering Corporation 601668	¥4.65	¥17.35	+273%
China Energy Engineering Corporation 601868	¥2.80	¥2.76	-1%
TopBuild Corp BLD	7,547 MXN	324.01 MXN	-96%
000720 000720	130,300 KRW	55,602 KRW	-57%

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Frequently asked questions

Is 1186 (1186) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$6.77 versus a price of HK$4.57 — about +48% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 1186?

Our model-based fair value for 1186 is HK$6.77 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$4.57.

What is the quality score of 1186?

1186 has a Quality Score of 37/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 1186 (1186)?

1186 reported trailing-twelve-month revenue of about HK$1.0T (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 1186?

The net profit margin of 1186 is about 1.8%, meaning it keeps roughly 1.8% of revenue as net income. Based on the latest reported figures.

Does 1186 pay a dividend?

1186 currently shows a dividend yield of about 6.56% 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.