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Precious Dragon Technology Holdings Ltd (1861) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$676M

PD Precious Dragon Technology Holdings Ltd 1861 · HK
PriceHK$2.24
Fair ValueHK$4.49
Upside+100.5%
Quality78/100
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Weak Growth
Thin margins · 9.0% net margin
Low debt · generates free cash flow
2.34% dividend yield
Ranks above peers (10/14)
Moderate moat 56/100
Evidence: High Range HK$3.38 – HK$5.79 Share as image

Fair value as of: Aug 13, 2026

From 25 valuation models · updated 3 days ago

Share price −10.4% over the past month.

A strong business, screening 100% undervalued on our models.

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What matters now

  • The rarer combination: high quality (78/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (HK$3.38). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$4.22 HK$0.7477 Fair Value HK$4.49 Jun 2019 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$0.7477 – HK$4.22 · fair‑value band HK$3.38 – HK$5.79 · the HK$2.24 price screens below the HK$4.49 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Precious Dragon Technology Holdings Ltd (1861) currently trades at HK$2.24, while our model-based Fair Value estimate is HK$4.49, implying the stock looks roughly 100.5% undervalued today. The Quality Score stands at 78/100 (high quality), in the Consumer Cyclical 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, Precious Dragon Technology Holdings Ltd generated revenue of HK$656M at a net margin of 9.0%. Revenue declined 2.3% year over year. It earns a return on equity of 16.7%. The balance sheet holds a net cash position of HK$157M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$3.38 (bear case) to HK$5.79 (bull case); at HK$2.24, the current price sits below 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 38% below its 52-week high and 96% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -20% fair-value upside, at 100%, 1861 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$3.53 HK$4.43 HK$5.50 80
Residual Income HK$1.54 HK$1.93 HK$4.50 76
Rev-Margin DCF HK$3.16 HK$4.31 HK$5.57 74
All 25 models by family
DCF Models
FCF DCF HK$3.49 HK$4.48 HK$5.71 38
Owner Earnings HK$3.29 HK$4.21 HK$5.35 31
5Y Revenue Exit HK$3.16 HK$4.27 HK$5.63 39
5Y EBITDA Exit HK$3.95 HK$5.69 HK$7.63 41
5Y P/E Exit HK$3.99 HK$5.76 HK$7.52 38
10Y Revenue Exit HK$3.21 HK$4.18 HK$5.35 36
10Y EBITDA Exit HK$3.73 HK$5.06 HK$6.69 37
10Y P/E Exit HK$3.75 HK$5.10 HK$6.61 35
Earnings-Based
Graham-Dodd HK$1.71 HK$4.14 HK$5.34 54
PEG = 1.0 HK$0.7300 HK$1.05 HK$1.36 46
EPV HK$2.37 HK$2.59 HK$2.78 59
Dividend Discount
Gordon GGM HK$0.4200 HK$0.6800 HK$0.9400 70
DDM Multi-Stage HK$0.4200 HK$0.6000 HK$0.7600 61
Multiples
P/E Multiple HK$4.15 HK$5.53 HK$6.91 63
P/S Multiple HK$2.52 HK$3.36 HK$4.21 58
P/B Multiple HK$3.21 HK$4.27 HK$5.34 55
EV/EBIT HK$5.80 HK$7.49 HK$9.19 53
EV/EBITDA HK$4.79 HK$6.15 HK$7.51 54
EV/Revenue HK$3.07 HK$4.08 HK$5.09 43
Asset-Based
NCAV (Graham) HK$0.8100 HK$1.08 HK$1.62 50
Growth DCF
Growth DCF HK$3.53 HK$4.43 HK$5.50 80
Rev-Margin DCF HK$3.16 HK$4.31 HK$5.57 74
Economic Profit
Residual Income HK$1.54 HK$1.93 HK$4.50 76
ROIC Compounder HK$2.43 HK$2.74 HK$3.06 72
Growth Earnings
Growth-Adj P/E HK$3.16 HK$4.51 HK$5.86 68

Widest divergence: Growth Earnings (HK$4.51) versus Dividend Discount (HK$0.6000). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$656M
Revenue growth (YoY) -2.3%
Net margin 9.0%
Return on equity 16.7%
Free cash flow HK$72.9M FY2025
P/E ratio 11.6 as of Jul 2, 2026
More key figures
Operating margin 13.6%
EPS (TTM) HK$0.2200
Dividend yield 2.3%
EPS growth (YoY) -39.5%
Net cash HK$157M FY2025

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

Quality Score breakdown

Overall quality 78/100

Of which business quality 78 · Market factors (momentum, volatility) 54

Profitability 74
Margins and returns on capital today
Quality Growth 73
Are margins and returns improving?
Cashflow 63
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 14
Calm price path (market factor)
Momentum 79
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 82
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

Precious Dragon Technology Holdings Limited engages in the design, development, manufacturing, and sale of aerosol and non-aerosol products for applications in automotive beauty and maintenance products. The company operates through two segments, Automotive Beauty and Maintenance Products; and Personal Care Products.

Full company description

Precious Dragon Technology Holdings Limited engages in the design, development, manufacturing, and sale of aerosol and non-aerosol products for applications in automotive beauty and maintenance products. The company operates through two segments, Automotive Beauty and Maintenance Products; and Personal Care Products. Its automotive beauty and maintenance products, including auto cleaning and maintenance products, such as auto interior decoration cleaning products, and tyre and wheel cleaning and care products; paint and coating products comprising chrome aerosol spray; refrigerant and cold cranking agents; and air-fresheners. The company also offers personal care products, including foaming facial wash, sunscreens, moisturizer, deodorizer, sanitizer, and hand wash; household products, such as paint and floor polish; and packaging materials. In addition, it engages in the content filling of aerosol cans; sale of contract manufacturing service and original brand manufacturing products; production and sale of ethanol; and trading of aerosol and non-aerosol products. The company sells its original brand manufacturing products under the BOTNY, ATM, ETOMAN, NISSEI, WIN, FOX-D, PISCIS, and PARLUX brand names. It sells its products through a network of distributors, including wholesalers, retailers and end-users and online retail stores, such as at Tmall and JD.com. The company operates in the Mainland China, Japan, Asia, the Middle East, the United States, and internationally. Precious Dragon Technology Holdings Limited was founded in 2000 and is headquartered in Guangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Precious Dragon Technology Holdings Ltd reported revenue of HK$656M in FY2025 versus HK$610M in FY2021, a compound +1.8%/yr. Reported net income was HK$58.8M in FY2025, compounding +34.3%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$656M
Latest YoY
+7.0%
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.
−0.3%
Avg. growth/yr (9Y) 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.
+2.5%
Revenue +1.8%/yr
FY21 HK$610M
FY22 HK$560M
FY23 HK$557M
FY24 HK$613M
FY25 HK$656M
Net income +34.3%/yr
FY21 HK$18.1M
FY22 HK$42.0M
FY23 HK$56.9M
FY24 HK$34.1M
FY25 HK$58.8M

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Cite: Fair Value Calculator (2026). "Precious Dragon Technology Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1861

Peer Group

Specialty Retail · 223 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 78 · Top 25%
Fair Value upside +100% · Top 25%
Return on equity (TTM) 17% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth -2% · Below median
Dividend yield (TTM) 2.3% · Below median
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 11.6× · Cheaper than median
P/B 1.79× · Pricier than median
P/S (TTM) 1.03× · Pricier than 75% of peers
P/FCF 1.2× · Cheaper than median
EV/EBITDA 5.1× · 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 100 · sector 29
FUTURE 0 · sector 23
PAST 67 · sector 26
HEALTH 99 · sector 94
DIVIDEND 47 · sector 58

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

Stock Price Fair Value vs Fair Value
Alimentation Couche-Tard Inc ATD C$93.19 C$75.00 -20%
Casey's General Stores, Inc CASY $839.03 $398.90 -52%
Williams-Sonoma, Inc WSM $245.15 $162.63 -34%
Ulta Beauty, Inc ULTA $531.89 $475.40 -11%
DICK'S Sporting Goods, Inc DKS $202.66 $181.10 -11%
Best Buy Co BBY $83.00 $108.04 +30%
China Tourism Group 601888 ¥54.97 ¥40.40 -27%
Tractor Supply Company TSCO $36.43 $35.52 -2%
Murphy USA Inc MUSA $544.22 $423.35 -22%
Taiwan Mobile Co 3045 109.50 TWD 80.98 TWD -26%

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Frequently asked questions

Is Precious Dragon Technology Holdings Ltd (1861) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$4.49 versus a price of HK$2.24, about +100% (undervalued).
What is the fair value of 1861?
Our model-based fair value for Precious Dragon Technology Holdings Ltd is HK$4.49 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.24.
What is the quality score of 1861?
Precious Dragon Technology Holdings Ltd has a Quality Score of 78/100. 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 Precious Dragon Technology Holdings Ltd (1861)?
Precious Dragon Technology Holdings Ltd reported trailing-twelve-month revenue of about HK$656M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1861?
The net profit margin of Precious Dragon Technology Holdings Ltd is about 9.0%, meaning it keeps roughly 9.0% of revenue as net income. Based on the latest reported figures.
Does Precious Dragon Technology Holdings Ltd pay a dividend?
Precious Dragon Technology Holdings Ltd currently shows a dividend yield of about 2.34% 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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