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Tak Lee Machinery Holdings Ltd (2102) Fair Value & Analysis

Industrials · HK · Market cap HK$310M

TL Tak Lee Machinery Holdings Ltd 2102 · HK
PriceHK$0.3000
Fair ValueHK$0.5900
Upside+96.7%
Quality79/100
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Weak Growth
Thin margins · 8.4% net margin
Low debt · generates free cash flow
11.29% dividend yield
Ranks above peers (12/14)
Narrow moat 37/100
Evidence: High Range HK$0.4400 – HK$0.7200 Share as image

Fair value as of: Aug 14, 2026

From 24 valuation models · updated 6 days ago

Share price +9.1% over the past month.

A strong business, screening 97% undervalued on our models.

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What matters now

  • The rarer combination: high quality (79/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (HK$0.4400). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$0.3200 HK$0.0762 Fair Value HK$0.5900 Mar 2018 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

60‑month range HK$0.0762 – HK$0.3200 · fair‑value band HK$0.4400 – HK$0.7200 · the HK$0.3000 price screens below the HK$0.5900 fair value. Dashed = 300-day average. As of Aug 14, 2026.

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Analysis

Tak Lee Machinery Holdings Ltd (2102) currently trades at HK$0.3000, while our model-based Fair Value estimate is HK$0.5900, implying the stock looks roughly 96.7% undervalued today. The Quality Score stands at 79/100 (high 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, Tak Lee Machinery Holdings Ltd generated revenue of HK$329M at a net margin of 8.4%. Revenue declined 1.4% year over year. It earns a return on equity of 6.3%. The balance sheet holds a net cash position of HK$116M. Fundamentals as of Aug 14, 2026

Our scenario range runs from HK$0.4400 (bear case) to HK$0.7200 (bull case); at HK$0.3000, 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 16% below its 52-week high and 68% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -16% fair-value upside, at 97%, 2102 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$0.7500 HK$0.9300 HK$1.20 80
Residual Income HK$0.3400 HK$0.3500 HK$0.3400 76
Rev-Margin DCF HK$0.5200 HK$0.6500 HK$0.8200 74
All 24 models by family
DCF Models
FCF DCF HK$0.7300 HK$0.9200 HK$1.23 38
Owner Earnings HK$0.6200 HK$0.7700 HK$1.02 31
5Y Revenue Exit HK$0.5200 HK$0.6300 HK$0.8000 39
5Y EBITDA Exit HK$0.6900 HK$0.9300 HK$1.24 41
5Y P/E Exit HK$0.6000 HK$0.7700 HK$0.9800 38
10Y Revenue Exit HK$0.6000 HK$0.6900 HK$0.7800 36
10Y EBITDA Exit HK$0.7000 HK$0.8600 HK$1.02 37
10Y P/E Exit HK$0.6600 HK$0.7700 HK$0.8800 35
Earnings-Based
Graham-Dodd HK$0.1900 HK$0.2400 HK$0.2600 54
EPV HK$0.3000 HK$0.3300 HK$0.3500 59
Dividend Discount
Gordon GGM HK$0.2300 HK$0.2500 HK$0.2800 70
DDM Multi-Stage HK$0.2300 HK$0.2800 HK$0.3400 61
Multiples
P/E Multiple HK$0.4400 HK$0.5900 HK$0.7400 63
P/S Multiple HK$0.3600 HK$0.4800 HK$0.6000 58
P/B Multiple HK$0.3600 HK$0.4800 HK$0.6000 55
EV/EBIT HK$0.4800 HK$0.6000 HK$0.7200 53
EV/EBITDA HK$0.7500 HK$0.9500 HK$1.16 54
EV/Revenue HK$0.3800 HK$0.4900 HK$0.6000 43
Asset-Based
NCAV (Graham) HK$0.2200 HK$0.3000 HK$0.4400 50
Growth DCF
Growth DCF HK$0.7500 HK$0.9300 HK$1.20 80
Rev-Margin DCF HK$0.5200 HK$0.6500 HK$0.8200 74
Economic Profit
Residual Income HK$0.3400 HK$0.3500 HK$0.3400 76
ROIC Compounder HK$0.3000 HK$0.3300 HK$0.3500 72
Growth Earnings
Growth-Adj P/E HK$0.3100 HK$0.4500 HK$0.5800 68

Widest divergence: DCF Models (HK$0.7700) versus Earnings-Based (HK$0.2400). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$329M
Revenue growth (YoY) -1.4%
Net margin 8.4%
Return on equity 6.3%
Free cash flow HK$75.6M FY2025
P/E ratio 8.7 as of Jul 2, 2026
More key figures
Operating margin 10.0%
Dividend yield 13.2%
EPS growth (YoY) -4.2%
Net cash HK$116M FY2025

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 79/100

Of which business quality 79 · Market factors (momentum, volatility) 70

Profitability 38
Margins and returns on capital today
Quality Growth 76
Are margins and returns improving?
Cashflow 94
Earnings quality: real cash, not paper profit
Fin. Strength 96
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 70
Price trend over the last 3–12 months (market factor)
52W Momentum 84
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

Tak Lee Machinery Holdings Limited, an investment holding company, engages in the sale and leasing of new and used heavy equipment and spare parts in Hong Kong. The company operates through Sales of Heavy Equipment and Spare Parts, Lease of Heavy Equipment, Repair, Logistics, and Other Ancillary Services segments.

Full company description

Tak Lee Machinery Holdings Limited, an investment holding company, engages in the sale and leasing of new and used heavy equipment and spare parts in Hong Kong. The company operates through Sales of Heavy Equipment and Spare Parts, Lease of Heavy Equipment, Repair, Logistics, and Other Ancillary Services segments. It also sells and leases heavy equipment, such as excavators, articulated dump trucks, bulldozers, lifting cranes, aerial platforms, rollers, loaders, hydraulic breakers, generators, and air compressors. In addition, the company distributes diesel engine generators; machine safety and control systems for height and slew control; and Mobile360 surround view and safety system technology products. Further, it provides maintenance and ancillary services; logistic services; and motor vehicle services. Additionally, the company offers warehouse, after-sales, and in-house management support services; leases lands; provides operator and logistics services. Tak Lee Machinery Holdings Limited sells various products under the Airman, Hitachi, Bell, Ammann, LaBounty, Hyundai, Rotobec, VIA, and Xwatch Safety Solutions brand names. The company was founded in 2001 and is based in Yuen Long, Hong Kong. Tak Lee Machinery Holdings Limited operates as a subsidiary of Generous Way Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tak Lee Machinery Holdings Ltd reported revenue of HK$331M in FY2025 versus HK$486M in FY2021, a compound −9.2%/yr. Reported net income was HK$28.2M in FY2025, compounding −14.5%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$331M
Latest YoY
+18.4%
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.
−5.8%
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.
−12.1%
Avg. growth/yr (10Y) 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.
+0.9%
Revenue −9.2%/yr
FY21 HK$486M
FY22 HK$395M
FY23 HK$272M
FY24 HK$279M
FY25 HK$331M
Net income −14.5%/yr
FY21 HK$52.6M
FY22 HK$45.1M
FY23 HK$7.1M
FY24 HK$7.1M
FY25 HK$28.2M
Character of growth · EPS growth decomposed (2015-2025) −8.9 % p.a.
Revenue per share −2.2 pp

of which total revenue −0.7 pp · buybacks/dilution −1.5 pp

EBIT margin −7.5 pp
Tax rate −0.5 pp
Residual (interest, one-offs) +1.3 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).

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Cite: Fair Value Calculator (2026). "Tak Lee Machinery Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2102

Peer Group

Farm & Heavy Construction Machinery · 151 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 79 · Top 25%
Fair Value upside +97% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 3% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth -1% · Below median
Dividend yield (TTM) 11.7% · Top 25%

Valuation Multiples vs Farm & Heavy Construction Machinery median · lower = cheaper

P/E (TTM) 8.7× · Cheaper than 75% of peers
P/B 0.70× · Cheaper than 75% of peers
P/S (TTM) 0.94× · Cheaper than median
P/FCF 0.5× · Cheaper than 75% of peers
EV/EBITDA 3.4× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 24
FUTURE0 · sector 31
PAST25 · sector 34
HEALTH100 · sector 93
DIVIDEND100 · sector 39

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 Farm & Heavy Construction Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

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XCMG Construction Machinery Co 000425 ¥8.25 ¥11.79 +43%
Sinotruk (Hong Kong) Limited 3808 HK$41.42 HK$53.57 +29%
Ashok Leyland Limited ASHOKLEY ₹176.40 ₹117.07 -34%
Yutong Bus Co 600066 ¥28.69 ¥42.00 +46%

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Frequently asked questions

Is Tak Lee Machinery Holdings Ltd (2102) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of HK$0.5900 versus a price of HK$0.3000, about +97% (undervalued).
What is the fair value of 2102?
Our model-based fair value for Tak Lee Machinery Holdings Ltd is HK$0.5900 (as of Aug 14, 2026), built from audited fundamentals. The current price: HK$0.3000.
What is the quality score of 2102?
Tak Lee Machinery Holdings Ltd has a Quality Score of 79/100. 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 Tak Lee Machinery Holdings Ltd (2102)?
Tak Lee Machinery Holdings Ltd reported trailing-twelve-month revenue of about HK$329M (latest available figure, as of Aug 14, 2026).
What is the net profit margin of 2102?
The net profit margin of Tak Lee Machinery Holdings Ltd is about 8.4%, meaning it keeps roughly 8.4% of revenue as net income. Based on the latest reported figures.
Does Tak Lee Machinery Holdings Ltd pay a dividend?
Tak Lee Machinery Holdings Ltd currently shows a dividend yield of about 13.21% relative to its recent price (as of Aug 14, 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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