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Microware Group Ltd (1985) Fair Value & Analysis

Technology · HK · Market cap HK$1.1B

MG Microware Group Ltd 1985 · HK
PriceHK$2.97
Fair ValueHK$0.7600
Upside-74.4%
Quality64/100
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Weak Growth
Loss-making · -0.1% net margin
generates free cash flow
Mixed vs. peers (4/10)
Narrow moat 22/100
Evidence: High Range HK$0.5700 – HK$0.9500 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$0.5400 to HK$0.7600 (+40.7%) since Aug 5, 2026. Share price −17.7% over the past month.

A solid business, but screening 74% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.9500). The favourable scenario is already priced in.
  • Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$3.81 HK$0.5682 Fair Value HK$0.7600 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$0.5682 – HK$3.81 · fair‑value band HK$0.5700 – HK$0.9500 · the HK$2.97 price screens above the HK$0.7600 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Microware Group Ltd (1985) currently trades at HK$2.97, while our model-based Fair Value estimate is HK$0.7600, implying the stock looks roughly 74.4% overvalued today. The Quality Score stands at 64/100 (solid quality), in the Technology 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: high).

Over the trailing twelve months, Microware Group Ltd generated revenue of HK$1.4B at a net margin of -0.1%. Revenue declined 8.6% year over year. It earns a return on equity of -0.8%. The balance sheet holds a net cash position of HK$90.9M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.5700 (bear case) to HK$0.9500 (bull case); at HK$2.97, 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 26% below its 52-week high and 165% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at 0% fair-value upside, at -74%, 1985 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$0.5100 HK$0.4900 HK$0.4000 76
Growth DCF HK$2.94 HK$3.74 HK$4.69 72
Growth-Adj P/E HK$0.4300 HK$0.6200 HK$0.8100 68
All 23 models by family
DCF Models
FCF DCF HK$2.91 HK$3.79 HK$4.91 38
Owner Earnings HK$0.9900 HK$1.15 HK$1.36 31
5Y Revenue Exit HK$1.87 HK$2.25 HK$2.69 39
5Y EBITDA Exit HK$2.35 HK$3.10 HK$3.94 41
5Y P/E Exit HK$1.81 HK$2.13 HK$2.45 38
10Y Revenue Exit HK$2.27 HK$2.68 HK$3.15 36
10Y EBITDA Exit HK$2.56 HK$3.21 HK$3.99 37
10Y P/E Exit HK$2.25 HK$2.61 HK$2.99 35
Earnings-Based
Graham-Dodd HK$0.1800 HK$0.4700 HK$0.6100 54
PEG = 1.0 HK$0.0900 HK$0.1300 HK$0.1600 46
EPV HK$0.8400 HK$0.8900 HK$0.9200 59
Multiples
P/E Multiple HK$0.5700 HK$0.7600 HK$0.9500 63
P/S Multiple HK$0.3500 HK$0.4600 HK$0.5800 58
P/B Multiple HK$0.3500 HK$0.4600 HK$0.5800 55
EV/EBIT HK$1.83 HK$2.26 HK$2.69 53
EV/EBITDA HK$2.15 HK$2.69 HK$3.23 54
EV/Revenue HK$1.19 HK$1.47 HK$1.75 43
Asset-Based
NCAV (Graham) HK$0.3700 HK$0.5000 HK$0.7400 50
Growth DCF
Growth DCF HK$2.94 HK$3.74 HK$4.69 72
Rev-Margin DCF HK$1.87 HK$2.30 HK$2.78 67
Economic Profit
Residual Income HK$0.5100 HK$0.4900 HK$0.4000 76
ROIC Compounder HK$0.8600 HK$0.9200 HK$0.9800 67
Growth Earnings
Growth-Adj P/E HK$0.4300 HK$0.6200 HK$0.8100 68

Widest divergence: DCF Models (HK$2.61) versus Earnings-Based (HK$0.4700). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$1.4B
Revenue growth (YoY) -8.6%
Net margin -0.1%
Return on equity -0.8%
Free cash flow HK$79.2M FY2025
Operating margin -0.5%
More key figures
EPS growth (YoY) -82.2%
Net cash HK$90.9M FY2025

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

Quality Score breakdown

Overall quality 64/100

Of which business quality 66 · Market factors (momentum, volatility) 80

Profitability 42
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 47
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 82
Distance to the 52-week high (market factor)
Net Issuance 100
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

Microware Group Limited, an investment holding company, provides information technology (IT) infrastructure solutions and IT managed services in Hong Kong. The company procures semiconductor, hardware, and software products, including design of solutions services.

Full company description

Microware Group Limited, an investment holding company, provides information technology (IT) infrastructure solutions and IT managed services in Hong Kong. The company procures semiconductor, hardware, and software products, including design of solutions services. It also offers maintenance, support, and management services, as well as implementation services of the IT infrastructure solutions. In addition, the company provides consultancy and advisory services. Microware Group Limited was founded in 1985 and is headquartered in Kwun Tong, Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Microware Group Ltd reported revenue of HK$1.5B in FY2025 versus HK$1.1B in FY2021, a compound +7.6%/yr. Reported net income was HK$8.2M in FY2025, compounding −35.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$1.5B
Latest YoY
+20.8%
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.
+9.1%
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.
+1.8%
Avg. growth/yr (11Y) ⓘ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.
+3.0%
Revenue +7.6%/yr
FY21 HK$1.1B
FY22 HK$1.1B
FY23 HK$1.2B
FY24 HK$1.2B
FY25 HK$1.5B
Net income −35.6%/yr
FY21 HK$47.3M
FY22 HK$32.0M
FY23 HK$33.2M
FY24 HK$36.2M
FY25 HK$8.2M
Character of growth · EPS growth decomposed (2014-2025) −0.2 % p.a.
Revenue per share +2.5 pp

of which total revenue +2.1 pp · buybacks/dilution +0.4 pp

EBIT margin −5.0 pp
Tax rate −0.3 pp
Residual (interest, one-offs) +2.6 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).

1985 screens 74% overvalued. Compare with International Business Machines Corporation →

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Microware Group Ltd · Fair Value
HK$0.7600 −74%Fair Value
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Cite: Fair Value Calculator (2026). "Microware Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1985

Peer Group

Information Technology Services · 490 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 64 · Above median
Fair Value upside −74% · Bottom 25%
Return on assets 1% · Below median
Net margin (TTM) -0% · Bottom 25%
Operating margin (TTM) -0% · Bottom 25%
Revenue growth -9% · Bottom 25%

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/B 0.62× · Cheaper than 75% of peers
P/S (TTM) 0.10× · Cheaper than 75% of peers
P/FCF 1.7× · Cheaper than median

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

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.98 $175.76 -26%
Accenture plc ACNN 2,460 MXN 300.07 MXN -88%
Tata Consultancy Services Limited TCS ₹2,350 ₹3,473 +48%
Infosys Limited INFY ₹1,176 ₹1,998 +70%
HCL Technologies Limited HCLTECH ₹1,365 ₹1,722 +26%
Wipro Limited WIPRO ₹183.94 ₹314.26 +71%
Tech Mahindra Limited TECHM ₹1,625 ₹1,521 -6%
Samsung SDS Co 018260 235,500 KRW 235,321 KRW -0%
Persistent Systems Limited PERSISTENT ₹5,474 ₹3,259 -40%
Hyundai Autoever Corporation 307950 433,000 KRW 186,323 KRW -57%

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Frequently asked questions

Is Microware Group Ltd (1985) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.7600 versus a price of HK$2.97, about −74% (overvalued).
What is the fair value of 1985?
Our model-based fair value for Microware Group Ltd is HK$0.7600 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$2.97.
What is the quality score of 1985?
Microware Group Ltd has a Quality Score of 64/100. 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 Microware Group Ltd (1985)?
Microware Group Ltd reported trailing-twelve-month revenue of about HK$1.4B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1985?
The net profit margin of Microware Group Ltd is about -0.1%, meaning it is currently running at a net loss. 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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