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Impro Precision Industries Limited (1286) Fair Value & Analysis

Industrials · HK · Market cap HK$14.7B

IP Impro Precision Industries Limited 1286 · HK
PriceHK$8.92
Fair ValueHK$5.06
Upside-43.2%
Quality57/100
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Mixed Growth
Solidly profitable · 14.3% net margin
Low debt · generates free cash flow
1.99% dividend yield
Ranks above peers (9/14)
Moderate moat 57/100
Evidence: High Range HK$2.72 – HK$8.20 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 2 days ago

Share price +7.2% over the past month.

A solid business, but screening 43% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$8.20). The favourable scenario is already priced in.
  • The model range is unusually wide (HK$2.72 to HK$8.20). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$11.45 HK$1.29 Fair Value HK$5.06 Jan 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$1.29 – HK$11.45 · fair‑value band HK$2.72 – HK$8.20 · the HK$8.92 price screens above the HK$5.06 fair value. Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

Impro Precision Industries Limited (1286) currently trades at HK$8.92, while our model-based Fair Value estimate is HK$5.06, implying the stock looks roughly 43.2% overvalued today. The Quality Score stands at 57/100 (solid 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: high).

Over the trailing twelve months, Impro Precision Industries Limited generated revenue of HK$5.1B at a net margin of 14.3%. Revenue grew 15.8% year over year. It earns a return on equity of 14.1%. Net debt stands at HK$1.7B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$2.72 (bear case) to HK$8.20 (bull case); at HK$8.92, 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 24% below its 52-week high and 217% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -43%, 1286 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$1.40 HK$2.31 HK$3.66 80
Residual Income HK$2.82 HK$3.42 HK$7.05 76
Rev-Margin DCF HK$2.40 HK$4.41 HK$6.79 74
All 26 models by family
DCF Models
FCF DCF HK$1.38 HK$2.43 HK$4.10 38
Owner Earnings HK$1.78 HK$3.08 HK$5.14 31
5Y Revenue Exit HK$2.40 HK$4.46 HK$7.16 39
5Y EBITDA Exit HK$4.56 HK$8.61 HK$13.47 41
5Y P/E Exit HK$3.83 HK$7.20 HK$10.85 38
10Y Revenue Exit HK$1.91 HK$3.72 HK$6.29 36
10Y EBITDA Exit HK$3.41 HK$6.64 HK$11.21 37
10Y P/E Exit HK$2.94 HK$5.65 HK$9.16 35
Earnings-Based
Graham-Dodd HK$2.62 HK$9.14 HK$12.29 54
Lynch FV HK$2.13 HK$3.04 HK$3.95 50
PEG = 1.0 HK$2.13 HK$3.04 HK$3.95 46
EPV HK$3.72 HK$4.40 HK$4.99 59
Dividend Discount
Gordon GGM HK$1.47 HK$3.05 HK$4.85 70
DDM Multi-Stage HK$1.47 HK$2.57 HK$3.21 61
Multiples
P/E Multiple HK$6.06 HK$8.08 HK$10.10 63
P/S Multiple HK$4.05 HK$5.40 HK$6.75 58
P/B Multiple HK$4.91 HK$6.54 HK$8.18 55
EV/EBIT HK$5.70 HK$7.72 HK$9.73 53
EV/EBITDA HK$6.96 HK$9.40 HK$11.83 54
EV/Revenue HK$3.06 HK$4.52 HK$5.98 43
Asset-Based
NCAV (Graham) HK$1.48 HK$1.99 HK$2.97 50
Growth DCF
Growth DCF HK$1.40 HK$2.31 HK$3.66 80
Rev-Margin DCF HK$2.40 HK$4.41 HK$6.79 74
Economic Profit
Residual Income HK$2.82 HK$3.42 HK$7.05 76
ROIC Compounder HK$3.94 HK$5.19 HK$6.80 72
Growth Earnings
Growth-Adj P/E HK$5.22 HK$7.46 HK$9.70 68

Widest divergence: Growth Earnings (HK$7.46) versus Asset-Based (HK$1.99). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$5.1B
Revenue growth (YoY) +15.8%
Net margin 14.3%
Return on equity 14.1%
Free cash flow HK$276M FY2025
P/E ratio 20.4 as of Jul 2, 2026
More key figures
Operating margin 17.4%
EPS (TTM) HK$0.1800
Dividend yield 2.0%
EPS growth (YoY) +12.0%
Net debt HK$1.7B FY2025

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

Quality Score breakdown

Overall quality 57/100

Of which business quality 56 · Market factors (momentum, volatility) 59

Profitability 46
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 46
Disciplined investing over empire-building
Low Volatility 23
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 84
Distance to the 52-week high (market factor)
Net Issuance 81
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

Impro Precision Industries Limited provides casting products and precision machining parts in the Americas, Europe, and Asia. It operates through Investment Casting, Precision Machining and Others, Sand Casting, and Surface Treatment segments.

Full company description

Impro Precision Industries Limited provides casting products and precision machining parts in the Americas, Europe, and Asia. It operates through Investment Casting, Precision Machining and Others, Sand Casting, and Surface Treatment segments. The company offers components for fuel systems, electric fuel injection and exhaust systems, transmission systems, hydraulic orbital motors and tool parts, engine blocks, cylinder heads, emission and engine systems, marine engines and steering systems, motorcycle brakes, exhaust gas recirculation and body systems, motor shafts, and turbo chargers, body systems, and motor shaft for electric vehicles. It also provides pumps, bearings, fire safety equipment, and food processing machinery; gas turbine combustor end covers, fuel nozzles, oil drilling platform, drilling plate drilling, mining drilling tools, well completion parts, sand control and its systems, etc.; and surface treatment of nuclear reactor internals and components of control rod drive mechanisms. In addition, the company offers electroplating services for brake systems, fasteners, steering systems, emission systems, and decorative components for traditional combustion engine vehicles and electric vehicles; hard chrome plating for air and fuel systems and engine parts; and anodizing and chemical film of components for fuel systems, engine systems, hydraulic systems, and flight control systems. Further, it provides components for air and fuel systems, aircraft engine systems, hydraulic systems, flight control systems, environment control systems, landing control systems, and auxiliary power units; and surgical instruments, surgical robots, medical diagnosis equipment, biosystem equipment, and prosthetics and patient handling equipment. Additionally, the company offers customer maintenance services, as well as manages logistic centers and warehouses. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Impro Precision Industries Limited reported revenue of HK$5.1B in FY2025 versus HK$3.8B in FY2021, a compound +7.8%/yr. Reported net income was HK$726M in FY2025, compounding +17.4%/yr from FY2021.

Growth Quality 81/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$5.1B
Latest YoY
+8.7%
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.
+5.4%
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.
+11.7%
Avg. growth/yr (10Y) 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.
+7.5%
Revenue +7.8%/yr
FY21 HK$3.8B
FY22 HK$4.4B
FY23 HK$4.6B
FY24 HK$4.7B
FY25 HK$5.1B
Net income +17.4%/yr
FY21 HK$383M
FY22 HK$582M
FY23 HK$585M
FY24 HK$644M
FY25 HK$726M
Character of growth · EPS growth decomposed (2015-2025) +7.8 % p.a.
Revenue per share +7.6 pp

of which total revenue +7.9 pp · buybacks/dilution −0.4 pp

EBIT margin +0.6 pp
Tax rate +0.9 pp
Residual (interest, one-offs) −1.3 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).

1286 screens 43% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Impro Precision Industries Limited Fair Value". https://www.fairvalue-calculator.com/stock/1286

Peer Group

Specialty Industrial Machinery · 807 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 57 · Above median
Fair Value upside −43% · Below median
Return on equity (TTM) 14% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 16% · Above median
Dividend yield (TTM) 2.0% · Above median
Debt / equity 0.24× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 20.4× · Cheaper than median
P/B 2.62× · Pricier than median
P/S (TTM) 2.88× · Pricier than median
P/FCF 6.8× · Pricier than median
EV/EBITDA 11.6× · Cheaper 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 0 · sector 0
FUTURE 79 · sector 23
PAST 56 · sector 28
HEALTH 88 · sector 96
DIVIDEND 40 · sector 27

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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GE Vernova Inc 1GEV €899.80 €186.93 -79%
1SIE 1SIE €281.75 €91.93 -67%
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Atlas Copco AB ATCOA kr 210.00 kr 112.59 -46%
Sandvik AB SAND kr 358.60 kr 193.01 -46%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥39.17 ¥22.68 -42%
NARI Technology Co 600406 ¥24.06 ¥18.71 -22%
ABB India Limited ABB ₹7,700 ₹1,322 -83%
Cummins India Limited CUMMINSIND ₹5,315 ₹1,355 -75%
Bharat Heavy Electricals Limited BHEL ₹420.00 ₹96.51 -77%

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Frequently asked questions

Is Impro Precision Industries Limited (1286) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$5.06 versus a price of HK$8.92, about −43% (overvalued).
What is the fair value of 1286?
Our model-based fair value for Impro Precision Industries Limited is HK$5.06 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$8.92.
What is the quality score of 1286?
Impro Precision Industries Limited has a Quality Score of 57/100. 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 Impro Precision Industries Limited (1286)?
Impro Precision Industries Limited reported trailing-twelve-month revenue of about HK$5.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1286?
The net profit margin of Impro Precision Industries Limited is about 14.3%, meaning it keeps roughly 14.3% of revenue as net income. Based on the latest reported figures.
Does Impro Precision Industries Limited pay a dividend?
Impro Precision Industries Limited currently shows a dividend yield of about 1.99% 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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