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Clarity Medical Group Holding Ltd (1406) Fair Value & Analysis

Healthcare · HK · Market cap HK$190M

CM Clarity Medical Group Holding Ltd 1406 · HK
PriceHK$0.3550
Fair ValueHK$0.2300
Upside-35.2%
Quality32/100
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Weak Growth
Loss-making · -42.1% net margin
negative free cash flow
Trails peers (2/9)
Narrow moat 10/100
Evidence: Low Range HK$0.1500 – HK$0.2900 Share as image

Fair value as of: Aug 13, 2026

From 1 valuation models · updated 3 days ago

Below-average quality, and screening another 35% overvalued on our models.

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What matters now

  • The price sits above even our optimistic bull case (HK$0.2900). The favourable scenario is already priced in.
  • Weak quality (32/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (HK$0.1500 to HK$0.2900) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$1.54 HK$0.3350 Fair Value HK$0.2300 Feb 2022 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

54‑month range HK$0.3350 – HK$1.54 · fair‑value band HK$0.1500 – HK$0.2900 · the HK$0.3550 price screens above the HK$0.2300 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Clarity Medical Group Holding Ltd (1406) currently trades at HK$0.3550, while our model-based Fair Value estimate is HK$0.2300, implying the stock looks roughly 35.2% overvalued today. The Quality Score stands at 32/100 (below-average quality), in the Healthcare 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: low).

Over the trailing twelve months, Clarity Medical Group Holding Ltd generated revenue of HK$177M at a net margin of -42.1%. Revenue declined 14.2% year over year. It earns a return on equity of -35.8%. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1500 (bear case) to HK$0.2900 (bull case); at HK$0.3550, 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 near its 52-week high, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -46% fair-value upside, at -35%, 1406 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
NCAV (Graham) HK$0.1800 HK$0.2400 HK$0.3500 50
All 1 models by family
Asset-Based
NCAV (Graham) HK$0.1800 HK$0.2400 HK$0.3500 50

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Key figures & financial health

Revenue (TTM) HK$177M
Revenue growth (YoY) -14.2%
Net margin -42.1%
Return on equity -35.8%
Free cash flow −HK$48.4M FY2024
Operating margin -13.4%
More key figures
EPS growth (YoY) -46.3%

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

Quality Score breakdown

Overall quality 32/100

Of which business quality 39 · Market factors (momentum, volatility) 56

Profitability 32
Margins and returns on capital today
Quality Growth 26
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 5
Disciplined investing over empire-building
Low Volatility 98
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 72
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

Clarity Medical Group Holding Limited, an investment holding company, provides ophthalmic healthcare services in Hong Kong. The company offers refractive treatment services, including SMILE and LASIK surgeries, multifocal implantable intraocular lens replacements, and implantable collamer lens implantations.

Full company description

Clarity Medical Group Holding Limited, an investment holding company, provides ophthalmic healthcare services in Hong Kong. The company offers refractive treatment services, including SMILE and LASIK surgeries, multifocal implantable intraocular lens replacements, and implantable collamer lens implantations. It also provides treatments for other eye problems, such as standard cataract surgeries, pars plan vitrectomy surgeries, laser procedures, and other treatments and surgeries. In addition, the company offers consultation and examination services, including visual acuity, refraction, anterior segment examination, fundal examination, and intraocular pressure measurement; consultancy services; and sells prescriptions and others. Clarity Medical Group Holding Limited was founded in 2005 and is headquartered in Kowloon, Hong Kong.

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

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Clarity Medical Group Holding Ltd reported revenue of HK$191M in FY2024 versus HK$218M in FY2020, a compound −3.3%/yr. Reported net income was −HK$75.8M in FY2024.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2024)
HK$191M
Latest YoY
−10.7%
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.
−5.0%
Revenue −3.3%/yr
FY20 HK$218M
FY21 HK$222M
FY22 HK$225M
FY23 HK$214M
FY24 HK$191M
Net income
FY20 HK$26.4M
FY21 HK$35.8M
FY22 HK$13.5M
FY23 −HK$3.2M
FY24 −HK$75.8M

1406 screens 35% overvalued. Compare with Intuitive Surgical, Inc →

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Cite: Fair Value Calculator (2026). "Clarity Medical Group Holding Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1406

Peer Group

Medical Instruments & Supplies · 202 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 39 · Bottom 25%
Fair Value upside −35% · Below median
Return on assets -10% · Bottom 25%
Net margin (TTM) -42% · Bottom 25%
Operating margin (TTM) -13% · Bottom 25%
Revenue growth -14% · Bottom 25%

Valuation Multiples vs Medical Instruments & Supplies median · lower = cheaper

P/B 0.13× · Cheaper than 75% of peers
P/S (TTM) 0.14× · Cheaper than 75% of peers

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 Medical Instruments & Supplies stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Intuitive Surgical, Inc ISRG $401.27 $150.04 -63%
EssilorLuxottica Société anonyme 1EL €164.40 €68.55 -58%
Medline Inc MDLN $35.50 $30.15 -15%
Becton, Dickinson and Company BDX $181.41 $100.46 -45%
Alcon Inc ALC $73.58 $39.78 -46%
ResMed Inc RMD $226.00 $187.89 -17%
West Pharmaceutical Services, Inc WST $352.29 $141.58 -60%
Sartorius Stedim Biotech S.A DIM €180.30 €48.88 -73%
Coloplast A/S COLOB kr 429.70 kr 382.22 -11%
Gan & Lee Pharmaceuticals., a biopharmaceutical company, 603087 ¥77.48 ¥27.22 -65%

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Frequently asked questions

Is Clarity Medical Group Holding Ltd (1406) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.2300 versus a price of HK$0.3550, about −35% (overvalued).
What is the fair value of 1406?
Our model-based fair value for Clarity Medical Group Holding Ltd is HK$0.2300 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.3550.
What is the quality score of 1406?
Clarity Medical Group Holding Ltd has a Quality Score of 32/100. 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 Clarity Medical Group Holding Ltd (1406)?
Clarity Medical Group Holding Ltd reported trailing-twelve-month revenue of about HK$177M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1406?
The net profit margin of Clarity Medical Group Holding Ltd is about -42.1%, 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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