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Kato Hong Kong Holdings Ltd (2189) Fair Value & Analysis

Healthcare · HK · Market cap HK$460M

KH Kato Hong Kong Holdings Ltd 2189 · HK
PriceHK$0.4900
Fair ValueHK$0.7500
Upside+53.1%
Quality66/100
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Healthy Growth
Thin margins · 6.8% net margin
Low debt · generates free cash flow
Ranks above peers (10/14)
Moderate moat 49/100
Evidence: High Range HK$0.5100 – HK$0.9400 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 3 days ago

Share price +1.0% over the past month.

A solid business, screening 53% undervalued on our models.

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What matters now

  • The price is below even our cautious bear case (HK$0.5100). The market is more pessimistic than our downside scenario.
  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (HK$0.5100 to HK$0.9400) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$0.5388 HK$0.4061 Fair Value HK$0.7500 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$0.4061 – HK$0.5388 · fair‑value band HK$0.5100 – HK$0.9400 · the HK$0.4900 price screens below the HK$0.7500 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Kato Hong Kong Holdings Ltd (2189) currently trades at HK$0.4900, while our model-based Fair Value estimate is HK$0.7500, implying the stock looks roughly 53.1% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Healthcare 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, Kato Hong Kong Holdings Ltd generated revenue of HK$343M at a net margin of 6.8%. Revenue grew 17.8% year over year. It earns a return on equity of 5.2%. Net debt stands at HK$202M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.5100 (bear case) to HK$0.9400 (bull case); at HK$0.4900, 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 2% below its 52-week high and 19% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -14% fair-value upside, at 53%, 2189 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$0.6100 HK$1.01 HK$1.57 80
Residual Income HK$0.3500 HK$0.3700 HK$0.3800 76
Rev-Margin DCF HK$0.5200 HK$0.9100 HK$1.41 74
All 26 models by family
DCF Models
FCF DCF HK$0.6200 HK$1.06 HK$1.72 38
Owner Earnings HK$0.5500 HK$0.9400 HK$1.53 31
5Y Revenue Exit HK$0.5200 HK$0.9200 HK$1.44 39
5Y EBITDA Exit HK$0.8300 HK$1.55 HK$2.44 41
5Y P/E Exit HK$0.4900 HK$0.8500 HK$1.26 38
10Y Revenue Exit HK$0.5300 HK$0.9000 HK$1.43 36
10Y EBITDA Exit HK$0.7400 HK$1.32 HK$2.17 37
10Y P/E Exit HK$0.5300 HK$0.8600 HK$1.29 35
Earnings-Based
Graham-Dodd HK$0.2300 HK$0.9900 HK$1.35 54
Lynch FV HK$0.2500 HK$0.3600 HK$0.4700 50
PEG = 1.0 HK$0.2500 HK$0.3600 HK$0.4700 46
EPV HK$0.3000 HK$0.3600 HK$0.4000 59
Dividend Discount
Gordon GGM HK$0.1600 HK$0.2800 HK$0.3900 70
DDM Multi-Stage HK$0.1600 HK$0.2600 HK$0.3000 61
Multiples
P/E Multiple HK$0.5600 HK$0.7500 HK$0.9400 63
P/S Multiple HK$0.4400 HK$0.5800 HK$0.7300 58
P/B Multiple HK$0.4400 HK$0.5800 HK$0.7300 55
EV/EBIT HK$0.7000 HK$0.9700 HK$1.25 53
EV/EBITDA HK$1.08 HK$1.47 HK$1.87 54
EV/Revenue HK$0.4700 HK$0.7200 HK$0.9700 43
Asset-Based
NCAV (Graham) HK$0.2300 HK$0.3000 HK$0.4500 50
Growth DCF
Growth DCF HK$0.6100 HK$1.01 HK$1.57 80
Rev-Margin DCF HK$0.5200 HK$0.9100 HK$1.41 74
Economic Profit
Residual Income HK$0.3500 HK$0.3700 HK$0.3800 76
ROIC Compounder HK$0.3000 HK$0.3600 HK$0.4000 72
Growth Earnings
Growth-Adj P/E HK$0.4400 HK$0.6200 HK$0.8100 68

Widest divergence: DCF Models (HK$0.9200) versus Dividend Discount (HK$0.2600). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$343M
Revenue growth (YoY) +17.8%
Net margin 6.8%
Return on equity 5.2%
Free cash flow HK$71.1M FY2025
P/E ratio 23.0 as of Jul 2, 2026
More key figures
Operating margin 25.0%
EPS (TTM) HK$0.0300
EPS growth (YoY) +5.1%
Net debt HK$202M FY2026

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

Quality Score breakdown

Overall quality 66/100

Of which business quality 64 · Market factors (momentum, volatility) 68

Profitability 35
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 86
Earnings quality: real cash, not paper profit
Fin. Strength 57
Balance sheet, leverage, solvency risk
Investment 76
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 69
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

Kato (Hong Kong) Holdings Limited, an investment holding company, operates as a residential care home for the elderly in Hong Kong. The company operates in two segments, Elderly Care Services and Investment Properties Holding.

Full company description

Kato (Hong Kong) Holdings Limited, an investment holding company, operates as a residential care home for the elderly in Hong Kong. The company operates in two segments, Elderly Care Services and Investment Properties Holding. It provides residential care services for the elderly, including provision of accommodation, professional nursing and care-taking, nutritional management, medical, physiotherapy and occupational therapy, physiotherapy and occupational therapy, psychological and social care, and individual care and recreational services. The company also sells healthcare and medical goods; and offers add-on healthcare services to its residents. In addition, it is involved in the operation of home care support services; provision of medical and laboratory services; and property rental and management activities. The company operates care and attention homes for the elderly under the Fai To, Kato, Happy Luck Home, Tsuen Wan Centre, Pine Villa, Hing Ten Elderly Centre, and Ka Shui Garden brand names. It serves the social welfare department and individual customers. The company was founded in 1991 and is based in Tuen Mun, Hong Kong. Kato (Hong Kong) Holdings Limited is a subsidiary of Sheung Fung Limited.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Kato Hong Kong Holdings Ltd reported revenue of HK$354M in FY2026 versus HK$320M in FY2022, a compound +2.5%/yr. Reported net income was HK$34.2M in FY2026, compounding −23.3%/yr from FY2022.

Growth Quality 73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
HK$354M
Latest YoY
+11.6%
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.
−4.7%
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.
+6.6%
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.
+9.5%
Revenue +2.5%/yr
FY22 HK$320M
FY23 HK$408M
FY24 HK$271M
FY25 HK$317M
FY26 HK$354M
Net income −23.3%/yr
FY22 HK$98.9M
FY23 HK$126M
FY24 HK$64.2M
FY25 HK$21.9M
FY26 HK$34.2M
Character of growth · EPS growth decomposed (2016-2026) +2.6 % p.a.
Revenue per share +9.4 pp

of which total revenue +9.4 pp · buybacks/dilution +0.0 pp

EBIT margin +0.3 pp
Tax rate −0.8 pp
Residual (interest, one-offs) −6.2 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). "Kato Hong Kong Holdings Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2189

Peer Group

Medical Care Facilities · 266 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 66 · Top 25%
Fair Value upside +53% · Top 25%
Return on equity (TTM) 5% · Below median
Return on assets 5% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 25% · Top 25%
Revenue growth 18% · Top 25%
Dividend yield (TTM) 4.3% · Top 25%
Debt / equity 0.40× · Higher than median

Valuation Multiples vs Medical Care Facilities median · lower = cheaper

P/E (TTM) 23.0× · Pricier than median
P/B 1.01× · Cheaper than median
P/S (TTM) 1.34× · Pricier than median
P/FCF 0.8× · Cheaper than median
EV/EBITDA 6.8× · 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 26
FUTURE 89 · sector 23
PAST 21 · sector 29
HEALTH 80 · sector 90
DIVIDEND 87 · sector 41

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.

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Frequently asked questions

Is Kato Hong Kong Holdings Ltd (2189) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.7500 versus a price of HK$0.4900, about +53% (undervalued).
What is the fair value of 2189?
Our model-based fair value for Kato Hong Kong Holdings Ltd is HK$0.7500 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.4900.
What is the quality score of 2189?
Kato Hong Kong Holdings Ltd has a Quality Score of 66/100. 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 Kato Hong Kong Holdings Ltd (2189)?
Kato Hong Kong Holdings Ltd reported trailing-twelve-month revenue of about HK$343M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2189?
The net profit margin of Kato Hong Kong Holdings Ltd is about 6.8%, meaning it keeps roughly 6.8% 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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