EN DE

China Leon Inspection Holding (1586) Fair Value & Analysis

Industrials · HK · Market cap HK$990M

CL China Leon Inspection Holding 1586 · HK
PriceHK$1.72
Fair ValueHK$1.06
Upside-38.4%
Quality48/100
Watch China Leon Inspection Holding for free, get notified when fair value or trend changes. Watch for free
Expensive Growth
Thin margins · 2.9% net margin
Low debt · negative free cash flow
Mixed vs. peers (6/12)
Narrow moat 33/100
Evidence: Medium Range HK$0.7900 – HK$1.32 Share as image

Fair value as of: Aug 5, 2026

From 17 valuation models · updated 5 days ago

Share price −2.8% over the past month.

Below-average quality, and screening another 38% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$1.32). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

HK$3.24 HK$0.9289 Fair Value HK$1.06 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.

How to read this chart

60‑month range HK$0.9289 – HK$3.24 · fair‑value band HK$0.7900 – HK$1.32 · the HK$1.72 price screens above the HK$1.06 fair value. Dashed = 300-day average. As of Aug 5, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

China Leon Inspection Holding (1586) currently trades at HK$1.72, while our model-based Fair Value estimate is HK$1.06, implying the stock looks roughly 38.4% overvalued today. The Quality Score stands at 48/100 (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: medium).

Over the trailing twelve months, China Leon Inspection Holding generated revenue of HK$1.3B at a net margin of 2.9%. Revenue grew 13.4% year over year. It earns a return on equity of 10.6%. Net debt stands at HK$3.8M. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$0.7900 (bear case) to HK$1.32 (bull case); at HK$1.72, 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 47% below its 52-week high and 51% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -38%, 1586 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
Residual Income HK$0.5700 HK$0.6100 HK$0.6600 76
ROIC Compounder HK$1.33 HK$1.72 HK$2.21 72
Gordon GGM HK$0.1200 HK$0.2200 HK$0.3000 70
All 17 models by family
DCF Models
Owner Earnings HK$1.11 HK$2.01 HK$3.67 31
Earnings-Based
Graham-Dodd HK$0.4200 HK$2.93 HK$4.10 54
Lynch FV HK$0.8600 HK$1.23 HK$1.60 50
PEG = 1.0 HK$0.8600 HK$1.23 HK$1.60 46
EPV HK$1.16 HK$1.28 HK$1.38 59
Dividend Discount
Gordon GGM HK$0.1200 HK$0.2200 HK$0.3000 70
DDM Multi-Stage HK$0.1200 HK$0.2000 HK$0.2300 61
Multiples
P/E Multiple HK$0.6500 HK$0.8700 HK$1.09 63
P/S Multiple HK$0.7900 HK$1.06 HK$1.32 58
P/B Multiple HK$0.7900 HK$1.06 HK$1.32 55
EV/EBIT HK$1.43 HK$1.81 HK$2.20 53
EV/EBITDA HK$1.52 HK$1.94 HK$2.36 54
EV/Revenue HK$1.67 HK$2.28 HK$2.89 43
Asset-Based
NCAV (Graham) HK$0.3600 HK$0.4800 HK$0.7200 50
Economic Profit
Residual Income HK$0.5700 HK$0.6100 HK$0.6600 76
ROIC Compounder HK$1.33 HK$1.72 HK$2.21 72
Growth Earnings
Growth-Adj P/E HK$1.01 HK$1.45 HK$1.88 68

Widest divergence: DCF Models (HK$2.01) versus Dividend Discount (HK$0.2000). Highest evidence: Residual Income (76).

Notify me when 1586 reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) HK$1.3B
Revenue growth (YoY) +13.4%
Net margin 2.9%
Return on equity 10.6%
Free cash flow −HK$17.6M FY2025
P/E ratio 25.3
More key figures
Operating margin 3.6%
EPS (TTM) HK$0.0700
EPS growth (YoY) -21.1%
Net debt HK$3.8M FY2025

Figures from reported company fundamentals · as of Aug 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 50 · Market factors (momentum, volatility) 38

Profitability 56
Margins and returns on capital today
Quality Growth 14
Are margins and returns improving?
Cashflow 25
Earnings quality: real cash, not paper profit
Fin. Strength 77
Balance sheet, leverage, solvency risk
Investment 64
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 14
Distance to the 52-week high (market factor)
Net Issuance 68
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

China Leon Inspection Holding Limited, an investment holding company, provides inspection, testing, technical, and consulting services in Greater China, Singapore, and internationally.

Full company description

China Leon Inspection Holding Limited, an investment holding company, provides inspection, testing, technical, and consulting services in Greater China, Singapore, and internationally. The company offers coal inspection and big data, metals and minerals inspection, petrochemical product inspection, climate change and sustainable development, power and energy, and leak detection and repair services, as well as integrated services in the environmental field. It also provides standard technical; inspection and testing; inspection technical advisory; and quality inspection services. It serves energy and bulk industries, such as coal, oil, power, and mineral product. The company was founded in 2009 and is headquartered in Beijing, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Leon Inspection Holding reported revenue of HK$1.2B in FY2025 versus HK$819M in FY2021, a compound +10.1%/yr. Reported net income was HK$34.8M in FY2025, compounding −8.6%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$1.2B
Latest YoY
+1.6%
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.
+13.3%
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.
+17.1%
Avg. growth/yr (12Y) 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.
+19.0%
Revenue +10.1%/yr
FY21 HK$819M
FY22 HK$829M
FY23 HK$1.0B
FY24 HK$1.2B
FY25 HK$1.2B
Net income −8.6%/yr
FY21 HK$49.8M
FY22 HK$60.9M
FY23 HK$72.5M
FY24 HK$77.7M
FY25 HK$34.8M
Character of growth · EPS growth decomposed (2014-2025) +0.8 % p.a.
Revenue per share +18.7 pp

of which total revenue +24.3 pp · buybacks/dilution −5.5 pp

EBIT margin −4.9 pp
Tax rate −2.6 pp
Residual (interest, one-offs) −10.4 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).

1586 screens 38% overvalued. Compare with Cintas Corporation →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "China Leon Inspection Holding Fair Value". https://www.fairvalue-calculator.com/stock/1586

Peer Group

Specialty Business Services · 253 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 48 · Below median
Fair Value upside −38% · Below median
Return on equity (TTM) 11% · Above median
Return on assets 6% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth 13% · Above median
Debt / equity 0.10× · Lower than median

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 25.3× · Pricier than median
P/B 2.46× · Pricier than median
P/S (TTM) 0.74× · Cheaper than median
EV/EBITDA 5.8× · 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 24
FUTURE 67 · sector 27
PAST 42 · sector 33
HEALTH 95 · sector 92
DIVIDEND 0 · sector 54

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 Business Services stocks, each showing price versus our Fair Value estimate (as of Aug 5, 2026).

Stock Price Fair Value vs Fair Value
Cintas Corporation CTAS $206.25 $95.30 -54%
RELX PLC RELX $33.70 $32.49 -4%
Thomson Reuters Corporation TRI C$133.87 C$70.40 -47%
Copart, Inc CPRT $27.61 $28.59 +4%
Global Payments Inc GPN $80.49 $69.67 -13%
RB Global, Inc RBA C$156.43 C$49.14 -69%
Brambles Limited BXB A$18.79 A$12.28 -35%
UL Solutions Inc ULS $87.76 $33.62 -62%
Wolters Kluwer N.V WKL €62.56 €103.99 +66%
Aramark ARMK $56.74 $13.73 -76%

Compare China Leon Inspection Holding with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is China Leon Inspection Holding (1586) overvalued or undervalued?
As of Aug 5, 2026, our model estimates a fair value of HK$1.06 versus a price of HK$1.72, about −38% (overvalued).
What is the fair value of 1586?
Our model-based fair value for China Leon Inspection Holding is HK$1.06 (as of Aug 5, 2026), built from audited fundamentals. The current price is HK$1.72.
What is the quality score of 1586?
China Leon Inspection Holding has a Quality Score of 48/100. 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 China Leon Inspection Holding (1586)?
China Leon Inspection Holding reported trailing-twelve-month revenue of about HK$1.3B (latest available figure, as of Aug 5, 2026).
What is the net profit margin of 1586?
The net profit margin of China Leon Inspection Holding is about 2.9%, meaning it keeps roughly 2.9% 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.

14 days Pro free · no card

Track China Leon Inspection Holding and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.