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Hong Kong Finance Group (1273) Fair Value & Analysis

Financial Services · HK · Market cap HK$299M

HK Hong Kong Finance Group 1273 · HK
PriceHK$0.7000
Fair ValueHK$1.40
Upside+100.0%
Quality78/100
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Weak Growth
Highly profitable · 48.3% net margin
Low debt · generates free cash flow
6.67% dividend yield
Ranks above peers (11/14)
Wide moat 72/100
Evidence: High Range HK$1.05 – HK$1.75 Share as image

Fair value as of: Aug 13, 2026

From 10 valuation models · updated 2 days ago

A strong business, screening 100% undervalued on our models.

What matters now

  • The rarer combination: high quality (78/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (HK$1.05). The market is more pessimistic than our downside scenario.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

HK$0.7500 HK$0.2577 Fair Value HK$1.40 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$0.2577 – HK$0.7500 · fair‑value band HK$1.05 – HK$1.75 · the HK$0.7000 price screens below the HK$1.40 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hong Kong Finance Group (1273) currently trades at HK$0.7000, while our model-based Fair Value estimate is HK$1.40, implying the stock looks roughly 100.0% undervalued today. The Quality Score stands at 78/100 (high quality), in the Financial Services 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: high), always confirm before acting.

Over the trailing twelve months, Hong Kong Finance Group generated revenue of HK$145M at a net margin of 48.3%. Revenue grew 24.1% year over year. It earns a return on equity of 8.0%. Net debt stands at HK$202M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.05 (bear case) to HK$1.75 (bull case); at HK$0.7000, 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 15% below its 52-week high and 90% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -35% fair-value upside, at 100%, 1273 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
Growth DCF HK$3.43 HK$4.63 HK$6.06 80
Residual Income HK$1.63 HK$1.66 HK$1.63 76
P/E Multiple HK$1.65 HK$2.20 HK$2.75 63
All 10 models by family
DCF Models
Owner Earnings HK$1.51 HK$2.11 HK$2.89 31
5Y P/E Exit HK$2.34 HK$3.26 HK$4.20 38
10Y P/E Exit HK$2.79 HK$3.64 HK$4.64 35
Earnings-Based
Graham-Dodd HK$1.15 HK$3.83 HK$5.12 54
Lynch FV HK$0.8700 HK$1.24 HK$1.61 50
Multiples
P/E Multiple HK$1.65 HK$2.20 HK$2.75 63
P/B Multiple HK$2.15 HK$2.87 HK$3.59 55
Asset-Based
NCAV (Graham) HK$1.10 HK$1.47 HK$2.19 50
Growth DCF
Growth DCF HK$3.43 HK$4.63 HK$6.06 80
Economic Profit
Residual Income HK$1.63 HK$1.66 HK$1.63 76

Widest divergence: Growth DCF (HK$4.63) versus Earnings-Based (HK$1.24). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$145M
Revenue growth (YoY) +24.1%
Net margin 48.3%
Return on equity 8.0%
Free cash flow HK$166M FY2025
P/E ratio 4.2 as of Jul 2, 2026
More key figures
Operating margin 63.1%
EPS (TTM) HK$0.1200
Dividend yield 6.7%
EPS growth (YoY) +96.3%
Net debt HK$202M FY2026

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

Quality Score breakdown

Overall quality 78/100

Of which business quality 72 · Market factors (momentum, volatility) 81

Profitability 42
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 61
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 76
Price trend over the last 3–12 months (market factor)
52W Momentum 87
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

Hong Kong Finance Group Limited, an investment holding company, provides property mortgages and personal loans under the Hong Kong Finance brand in Hong Kong. The company operates in two segments, Secured Property Mortgage Loans and Unsecured Property Owner Loans.

Full company description

Hong Kong Finance Group Limited, an investment holding company, provides property mortgages and personal loans under the Hong Kong Finance brand in Hong Kong. The company operates in two segments, Secured Property Mortgage Loans and Unsecured Property Owner Loans. It offers personal loans for HOS and public housing homeowners; large property loans for SMEs; SME financing; unsecured loans for property owners; mortgage further advance; carpark mortgage; mortgage loan transfer services; village house, tenement flat, shop, revolving, and industrial building mortgage loans; and yacht loans. The company is also involved in property investment holding activities. The company was founded in 1996 and is headquartered in Admiralty, Hong Kong. Hong Kong Finance Group Limited is a subsidiary of Tin Ching Holdings Limited.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Hong Kong Finance Group reported revenue of HK$164M in FY2026 versus HK$155M in FY2022, a compound +1.5%/yr. Reported net income was HK$70.1M in FY2026, compounding −0.1%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$164M
Latest YoY
+7.5%
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.
+0.2%
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.
+0.8%
Avg. growth/yr (15Y) 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.
+10.4%
Revenue +1.5%/yr
FY22 HK$155M
FY23 HK$163M
FY24 HK$137M
FY25 HK$153M
FY26 HK$164M
Net income −0.1%/yr
FY22 HK$70.6M
FY23 HK$58.9M
FY24 HK$42.7M
FY25 HK$46.2M
FY26 HK$70.1M
Character of growth · EPS growth decomposed (2015-2026) +0.9 % p.a.
Revenue per share +6.5 pp

of which total revenue +6.5 pp · buybacks/dilution +0.0 pp

EBIT margin −2.8 pp
Tax rate −0.3 pp
Residual (interest, one-offs) −2.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Hong Kong Finance Group Fair Value". https://www.fairvalue-calculator.com/stock/1273

Peer Group

Mortgage Finance · 91 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 77 · Top 25%
Fair Value upside +100% · Top 25%
Return on equity (TTM) 8% · Below median
Return on assets 6% · Top 25%
Net margin (TTM) 48% · Below median
Operating margin (TTM) 63% · Below median
Revenue growth 24% · Top 25%
Dividend yield (TTM) 6.7% · Above median

Valuation Multiples vs Mortgage Finance median · lower = cheaper

P/E (TTM) 4.2× · Cheaper than 75% of peers
P/B 0.33× · Cheaper than median
P/S (TTM) 2.06× · Cheaper than median
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 2.8× · 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 100 · sector 0
FUTURE 100 · sector 79
PAST 32 · sector 55
HEALTH 100 · sector 0
DIVIDEND 100 · sector 100

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 Mortgage Finance stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Frequently asked questions

Is Hong Kong Finance Group (1273) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$1.40 versus a price of HK$0.7000, about +100% (undervalued).
What is the fair value of 1273?
Our model-based fair value for Hong Kong Finance Group is HK$1.40 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.7000.
What is the quality score of 1273?
Hong Kong Finance Group has a Quality Score of 78/100. 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 Hong Kong Finance Group (1273)?
Hong Kong Finance Group reported trailing-twelve-month revenue of about HK$145M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1273?
The net profit margin of Hong Kong Finance Group is about 48.3%, meaning it keeps roughly 48.3% of revenue as net income. Based on the latest reported figures.
Does Hong Kong Finance Group pay a dividend?
Hong Kong Finance Group currently shows a dividend yield of about 6.67% relative to its recent price (as of Aug 13, 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.

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