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Tat Hong Equipment Service Co Ltd (2153) Fair Value & Analysis

Industrials · HK · Market cap HK$980M

TH Tat Hong Equipment Service Co Ltd 2153 · HK
PriceHK$0.8000
Fair ValueHK$1.28
Upside+60.0%
Quality37/100
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Weak Growth
Loss-making · -20.7% net margin
Low debt · generates free cash flow
Trails peers (4/12)
Narrow moat 2/100
Evidence: Medium Range HK$0.7200 – HK$1.83 Share as image

Fair value as of: Aug 13, 2026

From 7 valuation models · updated 3 days ago

Share price −4.8% 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 (37/100). That raises the risk this is a value trap rather than a bargain.
  • A fairly wide model range (HK$0.7200 to HK$1.83) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$1.56 HK$0.7000 Fair Value HK$1.28 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$0.7000 – HK$1.56 · fair‑value band HK$0.7200 – HK$1.83 · the HK$0.8000 price screens below the HK$1.28 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Tat Hong Equipment Service Co Ltd (2153) currently trades at HK$0.8000, while our model-based Fair Value estimate is HK$1.28, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 37/100 (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: medium), always confirm before acting.

Over the trailing twelve months, Tat Hong Equipment Service Co Ltd generated revenue of HK$582M at a net margin of -20.7%. Revenue declined 4.5% year over year. It earns a return on equity of -9.7%. Net debt stands at HK$1.1B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.7200 (bear case) to HK$1.83 (bull case); at HK$0.8000, the current price sits within 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 33% below its 52-week high and 27% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -16% fair-value upside, at 60%, 2153 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
Rev-Margin DCF HK$0.0100 74
EV/EBITDA HK$1.36 HK$1.92 HK$2.48 54
NCAV (Graham) HK$0.5000 HK$0.6800 HK$1.01 50
All 7 models by family
DCF Models
5Y Revenue Exit HK$0.0200 39
5Y EBITDA Exit HK$0.5600 HK$1.15 HK$1.94 41
10Y EBITDA Exit HK$0.2400 HK$0.5900 HK$0.9700 37
Multiples
EV/EBITDA HK$1.36 HK$1.92 HK$2.48 54
EV/Revenue HK$0.0100 43
Asset-Based
NCAV (Graham) HK$0.5000 HK$0.6800 HK$1.01 50
Growth DCF
Rev-Margin DCF HK$0.0100 74

Widest divergence: Multiples (HK$1.92) versus DCF Models (HK$0.5900). Highest evidence: Rev-Margin DCF (74).

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Key figures & financial health

Revenue (TTM) HK$582M
Revenue growth (YoY) -4.5%
Net margin -20.7%
Return on equity -9.7%
Free cash flow HK$22.2M FY2025
Operating margin -8.7%
More key figures
EPS (TTM) HK$-0.1200
EPS growth (YoY) -33.7%
Net debt HK$1.1B FY2026

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

Quality Score breakdown

Overall quality 37/100

Of which business quality 39 · Market factors (momentum, volatility) 33

Profitability 2
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 21
Price trend over the last 3–12 months (market factor)
52W Momentum 17
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

Tat Hong Equipment Service Co., Ltd. provides tower crane solution services in the People's Republic of China. The company offers consultation, technical design, commissioning, construction, and after-sales services to infrastructure, clean energy, traditional energy, public and factory building, and commercial and residential building.

Full company description

Tat Hong Equipment Service Co., Ltd. provides tower crane solution services in the People's Republic of China. The company offers consultation, technical design, commissioning, construction, and after-sales services to infrastructure, clean energy, traditional energy, public and factory building, and commercial and residential building. It also engages in the installation, maintenance, leasing, and finance leasing of construction machinery and equipment. Additionally, it manages a fleet of tower cranes. The company was founded in 2007 and is headquartered in Shanghai, China. Tat Hong Equipment Service Co., Ltd. operates as a subsidiary of Tat Hong Equipment (China) Pte. Ltd.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tat Hong Equipment Service Co Ltd reported revenue of HK$561M in FY2026 versus HK$867M in FY2022, a compound −10.3%/yr. Reported net income was −HK$116M in FY2026.

Growth Quality 12/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$561M
Latest YoY
−11.5%
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.
−10.0%
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.
−6.7%
Avg. growth/yr (8Y) 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%
Revenue −10.3%/yr
FY22 HK$867M
FY23 HK$771M
FY24 HK$682M
FY25 HK$635M
FY26 HK$561M
Net income
FY22 HK$47.6M
FY23 −HK$35.8M
FY24 −HK$95.6M
FY25 −HK$121M
FY26 −HK$116M

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Cite: Fair Value Calculator (2026). "Tat Hong Equipment Service Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2153

Peer Group

Farm & Heavy Construction Machinery · 148 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 37 · Bottom 25%
Fair Value upside +60% · Top 25%
Return on assets -1% · Bottom 25%
Net margin (TTM) -21% · Bottom 25%
Operating margin (TTM) -9% · Bottom 25%
Revenue growth -5% · Below median
Debt / equity 0.43× · Higher than median

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

P/B 0.11× · Cheaper than 75% of peers
P/S (TTM) 0.22× · Cheaper than 75% of peers
P/FCF 5.6× · Pricier than median
EV/EBITDA 2.8× · 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 22
FUTURE 0 · sector 31
PAST 0 · sector 35
HEALTH 78 · sector 93
DIVIDEND 0 · sector 44

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 13, 2026).

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Epiroc AB EPIA kr 254.50 kr 144.14 -43%
Sany Heavy Industry Co 600031 ¥18.91 ¥20.84 +10%
XCMG Construction Machinery Co 000425 ¥8.25 ¥11.79 +43%
Sinotruk (Hong Kong) Limited 3808 HK$41.42 HK$53.57 +29%
Yutong Bus Co 600066 ¥28.69 ¥42.00 +46%
Ashok Leyland Limited ASHOKLEY ₹176.70 ₹118.01 -33%

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Frequently asked questions

Is Tat Hong Equipment Service Co Ltd (2153) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$1.28 versus a price of HK$0.8000, about +60% (undervalued).
What is the fair value of 2153?
Our model-based fair value for Tat Hong Equipment Service Co Ltd is HK$1.28 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.8000.
What is the quality score of 2153?
Tat Hong Equipment Service Co Ltd has a Quality Score of 37/100. 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 Tat Hong Equipment Service Co Ltd (2153)?
Tat Hong Equipment Service Co Ltd reported trailing-twelve-month revenue of about HK$582M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2153?
The net profit margin of Tat Hong Equipment Service Co Ltd is about -20.7%, 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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