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Diwang Industrial Holdings Ltd (1950) Fair Value & Analysis

Basic Materials · HK · Market cap HK$74.9M

DI Diwang Industrial Holdings Ltd 1950 · HK
PriceHK$0.1060
Fair ValueHK$0.1696
Upside+60.0%
Quality29/100
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Expensive Growth
Thin margins · 0.4% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/10)
Narrow moat 18/100
Evidence: Medium Range HK$0.1131 – HK$0.2261 Share as image

Fair value as of: Aug 13, 2026

From 12 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$0.0900 to HK$0.1696 (+88.4%) since Aug 5, 2026. Share price −6.2% over the past month.

Below-average quality, screening 60% undervalued on our models.

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What matters now

  • The large discount to fair value meets weak quality (29/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$0.1131). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (HK$0.1131 to HK$0.2261) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$0.9000 HK$0.0620 Fair Value HK$0.1696 Mar 2021 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$0.0620 – HK$0.9000 · fair‑value band HK$0.1131 – HK$0.2261 · the HK$0.1060 price screens below the HK$0.1696 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Diwang Industrial Holdings Ltd (1950) currently trades at HK$0.1060, while our model-based Fair Value estimate is HK$0.1696, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 29/100 (below-average quality), in the Basic Materials 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: medium), always confirm before acting.

Over the trailing twelve months, Diwang Industrial Holdings Ltd generated revenue of HK$599M at a net margin of 0.4%. Revenue grew 22.5% year over year. It earns a return on equity of -0.3%. Net debt stands at HK$22.2M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1131 (bear case) to HK$0.2261 (bull case); at HK$0.1060, 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 71% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -68% fair-value upside, at 60%, 1950 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
Residual Income HK$0.5300 HK$0.4700 HK$0.2800 76
Gordon GGM HK$0.1100 HK$0.1900 HK$0.2400 70
Growth-Adj P/E HK$0.0500 HK$0.0800 HK$0.1000 68
All 12 models by family
Earnings-Based
Graham-Dodd HK$0.0200 HK$0.1400 HK$0.2000 54
Lynch FV HK$0.0400 HK$0.0600 HK$0.0800 50
PEG = 1.0 HK$0.0400 HK$0.0600 HK$0.0800 46
Dividend Discount
Gordon GGM HK$0.1100 HK$0.1900 HK$0.2400 70
DDM Multi-Stage HK$0.1100 HK$0.1800 HK$0.2000 61
Multiples
P/E Multiple HK$0.0400 HK$0.0600 HK$0.0700 63
P/S Multiple HK$0.0400 HK$0.0600 HK$0.0700 58
P/B Multiple HK$0.0400 HK$0.0600 HK$0.0700 55
EV/EBITDA HK$0.2100 HK$0.2500 HK$0.2900 54
Asset-Based
NCAV (Graham) HK$0.4300 HK$0.5800 HK$0.8600 50
Economic Profit
Residual Income HK$0.5300 HK$0.4700 HK$0.2800 76
Growth Earnings
Growth-Adj P/E HK$0.0500 HK$0.0800 HK$0.1000 68

Widest divergence: Asset-Based (HK$0.5800) versus Earnings-Based (HK$0.0600). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$599M
Revenue growth (YoY) +22.5%
Net margin 0.4%
Return on equity -0.3%
Free cash flow −HK$43.0M FY2025
Operating margin -4.5%
More key figures
EPS (TTM) HK$0.0200
EPS growth (YoY) -32.3%
Net debt HK$22.2M FY2025

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

Quality Score breakdown

Overall quality 29/100

Of which business quality 33 · Market factors (momentum, volatility) 23

Profitability 31
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 5
Earnings quality: real cash, not paper profit
Fin. Strength 61
Balance sheet, leverage, solvency risk
Investment 27
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 3
Distance to the 52-week high (market factor)
Net Issuance 40
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

Diwang Industrial Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of coating agents and synthetic resins in the People's Republic of China, Mexico, Turkey, and Vietnam. It operates through Faux Leather Chemicals and Chinese Liquor Business segments.

Full company description

Diwang Industrial Holdings Limited, an investment holding company, engages in the research and development, manufacture, and sale of coating agents and synthetic resins in the People's Republic of China, Mexico, Turkey, and Vietnam. It operates through Faux Leather Chemicals and Chinese Liquor Business segments. The company offers colourants, finishes, and additives for use in apparel, footwear, handbags, automobile interior decoration, home furnishings, and sports equipment industries; and wine products, including Chinese baijiu. The company was formerly known as Sunlight Technology Holdings Limited and changed its name to Diwang Industrial Holdings Limited in May 2022. Diwang Industrial Holdings Limited was founded in 2003 and is headquartered in Hangzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Diwang Industrial Holdings Ltd reported revenue of HK$599M in FY2025 versus HK$234M in FY2021, a compound +26.5%/yr. Reported net income was HK$2.5M in FY2025.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$599M
Latest YoY
+5.8%
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.
+6.1%
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.
+34.8%
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.
+16.5%
Revenue +26.5%/yr
FY21 HK$234M
FY22 HK$501M
FY23 HK$571M
FY24 HK$566M
FY25 HK$599M
Net income
FY21 −HK$2.6M
FY22 HK$21.9M
FY23 HK$19.5M
FY24 HK$30.0M
FY25 HK$2.5M

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Cite: Fair Value Calculator (2026). "Diwang Industrial Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1950

Peer Group

Specialty Chemicals · 670 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 29 · Bottom 25%
Fair Value upside +60% · Top 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 0% · Below median
Operating margin (TTM) -5% · Bottom 25%
Revenue growth 23% · Top 25%
Dividend yield (TTM) 15.3% · Top 25%

Valuation Multiples vs Specialty Chemicals median · lower = cheaper

P/S (TTM) 0.02× · Cheaper than 75% of peers

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 0
FUTURE 100 · sector 19
PAST 0 · sector 23
HEALTH 100 · sector 95
DIVIDEND 100 · sector 32

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

Stock Price Fair Value vs Fair Value
Linde plc LIN $479.43 $222.03 -54%
Wanhua Chemical Group 600309 ¥75.06 ¥68.03 -9%
Novozymes A/S NSISB kr 416.10 kr 170.02 -59%
Asian Paints Limited ASIANPAINT ₹2,756 ₹664.51 -76%
Solar Industries India Limited SOLARINDS ₹18,730 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,702 ₹351.84 -79%
PT Chandra Asri Pacific Tbk TPIA 2,160 IDR 2,322 IDR +8%
Berger Paints India Limited BERGEPAINT ₹559.80 ₹154.46 -72%
Gujarat Fluorochemicals Limited FLUOROCHEM ₹4,566 ₹836.47 -82%
Himadri Speciality Chemical Limited HSCL ₹778.15 ₹248.63 -68%

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Frequently asked questions

Is Diwang Industrial Holdings Ltd (1950) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.1696 versus a price of HK$0.1060, about +60% (undervalued).
What is the fair value of 1950?
Our model-based fair value for Diwang Industrial Holdings Ltd is HK$0.1696 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.1060.
What is the quality score of 1950?
Diwang Industrial Holdings Ltd has a Quality Score of 29/100. 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 Diwang Industrial Holdings Ltd (1950)?
Diwang Industrial Holdings Ltd reported trailing-twelve-month revenue of about HK$599M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1950?
The net profit margin of Diwang Industrial Holdings Ltd is about 0.4%, meaning it keeps roughly 0.4% 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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