1606 (1606) Fair Value & Analysis

Industrials · Market cap HK$18.8B

1 1606 1606 · HK

PriceHK$1.48

Fair ValueHK$2.96

Upside+100.0%

Quality42/100

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Evidence: High Range HK$2.22 – HK$3.70

Fair value as of: Jul 2, 2026

From 16 valuation models · updated today

Share price −6.3% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$1.39 – HK$1.81 · fair‑value band HK$2.22 – HK$3.70 · the HK$1.48 price screens below the HK$2.96 fair value. As of Jul 2, 2026.

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Analysis

1606 (1606) currently trades at HK$1.48, while our model-based Fair Value estimate is HK$2.96 — implying the stock looks roughly 100.0% undervalued today. We read business quality at 42/100 (below-average quality), in the Industrials 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, 1606 generated revenue of HK$16.6B at a net margin of 30.3%. Revenue grew 5.3% year over year. It earns a return on equity of 11.9%. Net debt stands at HK$304B. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$16.6B

Revenue growth (YoY) +5.3%

Net margin 30.3%

Return on equity 11.9%

Free cash flow −HK$12.1B FY2025

P/E ratio 3.2

More key figures

Operating margin 42.6%

EPS (TTM) HK$0.1900

Dividend yield 6.6%

EPS growth (YoY) +0.3%

Net debt HK$304B FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 2, 2026. TTM = trailing twelve months.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

1606 reported revenue of HK$26.6B in FY2025 versus HK$12.2B in FY2021, a compound +21.6%/yr. Reported net income was HK$4.9B in FY2025, compounding +5.7%/yr from FY2021.

Revenue +21.6%/yr

FY21 HK$12.2B

FY22 HK$15.1B

FY23 HK$15.5B

FY24 HK$25.4B

FY25 HK$26.6B

Net income +5.7%/yr

FY21 HK$3.9B

FY22 HK$3.4B

FY23 HK$4.2B

FY24 HK$4.5B

FY25 HK$4.9B

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Similar stocks

6 more Rental & Leasing Services stocks, each showing price versus our Fair Value estimate (as of Jul 2, 2026).

Stock	Price	Fair Value	vs Fair Value
United Rentals, Inc URI	$1,093	$378.08	-65%
Sunbelt Rentals Holdings SUNB	$76.43	$38.17	-50%
AerCap Holdings AER	$146.85	$301.51	+105%
Ayvens ALLDF	$14.00	$23.65	+69%
Ryder System, Inc R	$270.25	$204.91	-24%
Localiza Rent a Car S.A LZRFY	$7.81	$7.21	-8%

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Frequently asked questions

Is 1606 (1606) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$2.96 versus a price of HK$1.48 — about +100% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 1606?

Our model-based fair value for 1606 is HK$2.96 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$1.48.

What is the quality score of 1606?

1606 has a Quality Score of 42/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 1606 (1606)?

1606 reported trailing-twelve-month revenue of about HK$16.6B (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 1606?

The net profit margin of 1606 is about 30.3%, meaning it keeps roughly 30.3% of revenue as net income. Based on the latest reported figures.

Does 1606 pay a dividend?

1606 currently shows a dividend yield of about 6.64% relative to its recent price (as of Jul 2, 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.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.