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K. H. Group (1557) Fair Value & Analysis

Industrials · HK · Market cap HK$264M

KH K. H. Group 1557 · HK
PriceHK$0.5500
Fair ValueHK$0.0800
Upside-85.5%
Quality31/100
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Strengths

Highly profitable · 157.5% net margin

Risks

!Trades 587% ABOVE our fair value of HK$0.0800
!Weak Growth (revenue 5y −37.7 %/yr)
!Moderate debt · negative free cash flow
!Mixed vs. peers (4/9)
Weak Growth (revenue 5y −37.7 %/yr)
Highly profitable · 157.5% net margin
Moderate debt · negative free cash flow
Mixed vs. peers (4/9)
Narrow moat 23/100
Evidence: Low Range HK$0.0600 – HK$0.1200 Share as image

Fair value as of: Aug 24, 2026

From 1 valuation models · updated today

Share price −5.2% over the past month.

Below-average quality, and screening another 85% overvalued on our models.

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69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (HK$0.1200). The favourable scenario is already priced in.
  • Weak quality (31/100) 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$0.0600 to HK$0.1200) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$0.9600 HK$0.1170 Fair Value HK$0.0800 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 24, 2026.

How to read this chart

60‑month range HK$0.1170 – HK$0.9600 · fair‑value band HK$0.0600 – HK$0.1200 · the HK$0.5500 price screens above the HK$0.0800 fair value. Dashed = 300-day average. As of Aug 24, 2026.

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Analysis

K. H. Group (1557) currently trades at HK$0.5500, while our model-based Fair Value estimate is HK$0.0800, implying the stock looks roughly 85.5% overvalued today. The Quality Score stands at 31/100 (below-average 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: low).

Over the trailing twelve months, K. H. Group generated revenue of HK$157M at a net margin of 88.7%. Net debt stands at HK$68.0M. Fundamentals as of Aug 24, 2026

Our scenario range runs from HK$0.0600 (bear case) to HK$0.1200 (bull case); at HK$0.5500, 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 20% below its 52-week high and 293% 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 -85%, 1557 screens richer 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$0.0600 HK$0.0800 HK$0.1200 50
All 1 models by family
Asset-Based
NCAV (Graham) HK$0.0600 HK$0.0800 HK$0.1200 50

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Key figures & financial health

P/S ratio 3.01 TTM
Net margin 158% TTM
Return on equity -1,595% TTM
Return on assets -5.6% TTM
Operating margin -24.5% TTM
EPS (TTM) HK$-0.0100
More key figures
Growth
Revenue (TTM) HK$87.6M TTM
Revenue growth (YoY) +77.2% 3y avg -29.1%
Balance sheet & cash flow
Free cash flow −HK$12.9M FY2026
Net debt HK$68.0M FY2026

Figures from reported company fundamentals · as of Aug 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 31/100

Of which business quality 28 · Market factors (momentum, volatility) 74

Profitability 5
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 19
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 35
Calm price path (market factor)
Momentum 92
Price trend over the last 3–12 months (market factor)
52W Momentum 87
Distance to the 52-week high (market factor)
Net Issuance 49
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

K. H. Group Holdings Limited, an investment holding company, provides foundation and construction services in Hong Kong and the People's Republic of China. The company operates through Foundation and Construction, Chemical Materials, and Others segments. It also involved in the leasing of machinery; and construction and sale of chemical products. K. H.

Full company description

K. H. Group Holdings Limited, an investment holding company, provides foundation and construction services in Hong Kong and the People's Republic of China. The company operates through Foundation and Construction, Chemical Materials, and Others segments. It also involved in the leasing of machinery; and construction and sale of chemical products. K. H. Group Holdings Limited was founded in 1985 and is headquartered in Kowloon, Hong Kong. K. H. Group Holdings Limited is a subsidiary of Blessing Well Enterprise Limited.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

K. H. Group reported revenue of HK$87.6M in FY2026 versus HK$752M in FY2022, a compound −41.6%/yr. Reported net income was −HK$24.3M in FY2026.

Growth Quality 19/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$87.6M
Latest YoY
−32.4%
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.
−29.1%
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.
−37.7%
Avg. growth/yr (13Y) 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.
−5.2%
Value creation/yr We only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
not computed
Revenue −41.6%/yr
FY22 HK$752M
FY23 HK$245M
FY24 HK$175M
FY25 HK$130M
FY26 HK$87.6M
Net income
FY22 −HK$18.3M
FY23 −HK$74.1M
FY24 −HK$51.6M
FY25 −HK$57.6M
FY26 −HK$24.3M

1557 screens 85% overvalued. Compare with Quanta Services, Inc →

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Cite: Fair Value Calculator (2026). "K. H. Group Fair Value". https://www.fairvalue-calculator.com/stock/1557

Peer Group

Engineering & Construction · 836 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 28 · Bottom 25%
Fair Value upside −86% · Bottom 25%
Return on assets -6% · Bottom 25%
Net margin (TTM) 158% · Top 25%
Operating margin (TTM) -25% · Bottom 25%
Revenue growth 77% · Top 25%
Debt / equity 0.64× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/B 0.58× · Cheaper than median
P/S (TTM) 0.38× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 17
FUTURE100 · sector 14
PAST0 · sector 26
HEALTH68 · sector 94
DIVIDEND0 · sector 38

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

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 24, 2026).

Stock Price Fair Value vs Fair Value
Quanta Services, Inc PWR $678.02 $143.92 -79%
Vinci SA DG €119.95 €185.62 +55%
Comfort Systems USA, Inc FIX $1,739 $519.97 -70%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 -46%
Ferrovial N.V FER €57.28 €19.17 -67%
HOCHTIEF Aktiengesellschaft HOT €427.60 €203.87 -52%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
ACS, Actividades de Construcción y Servicios, S.A ACS €110.70 €75.04 -32%
EMCOR Group EME $833.40 $549.47 -34%
MasTec, Inc MTZ $281.11 $100.00 -64%

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Frequently asked questions

Is K. H. Group (1557) overvalued or undervalued?
As of Aug 24, 2026, our model estimates a fair value of HK$0.0800 versus a price of HK$0.5500, about −85% (overvalued).
What is the fair value of 1557?
Our model-based fair value for K. H. Group is HK$0.0800 (as of Aug 24, 2026), built from audited fundamentals. The current price: HK$0.5500.
What is the quality score of 1557?
K. H. Group has a Quality Score of 31/100. 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 K. H. Group (1557)?
K. H. Group reported trailing-twelve-month revenue of about HK$157M (latest available figure, as of Aug 24, 2026).
What is the net profit margin of 1557?
The net profit margin of K. H. Group is about 88.7%, meaning it keeps roughly 88.7% of revenue as net income. 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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