2198 (2198) Fair Value & Analysis

Basic Materials · Market cap HK$3.2B

2 2198 2198 · HK

PriceHK$2.75

Fair ValueHK$6.95

Upside+152.7%

Quality45/100

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Evidence: Medium Range HK$5.21 – HK$8.68

Fair value as of: Jul 2, 2026

From 14 valuation models · updated today

Share price −25.5% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$1.67 – HK$5.67 · fair‑value band HK$5.21 – HK$8.68 · the HK$2.75 price screens below the HK$6.95 fair value. As of Jul 2, 2026.

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Analysis

2198 (2198) currently trades at HK$2.75, while our model-based Fair Value estimate is HK$6.95 — implying the stock looks roughly 152.7% undervalued today. We read business quality at 45/100 (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, 2198 generated revenue of HK$18.5B at a net margin of 2.2%. Revenue declined 9.5% year over year. It earns a return on equity of 8.0%. Net debt stands at HK$9.7B. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$18.5B

Revenue growth (YoY) -9.5%

Net margin 2.2%

Return on equity 8.0%

Free cash flow −HK$678M FY2025

P/E ratio 6.7

More key figures

Operating margin 3.8%

EPS (TTM) HK$0.2600

Dividend yield 1.7%

EPS growth (YoY) -71.9%

Net debt HK$9.7B FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 2, 2026. TTM = trailing twelve months.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

2198 reported revenue of HK$18.5B in FY2025 versus HK$9.5B in FY2021, a compound +18.1%/yr. Reported net income was HK$407M in FY2025, compounding +1.7%/yr from FY2021.

Revenue +18.1%/yr

FY21 HK$9.5B

FY22 HK$8.8B

FY23 HK$13.1B

FY24 HK$19.6B

FY25 HK$18.5B

Net income +1.7%/yr

FY21 HK$381M

FY22 −HK$308M

FY23 HK$91.5M

FY24 HK$533M

FY25 HK$407M

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Similar stocks

6 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 2, 2026).

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Linde plc LIN	€448.00	€191.66	-57%
Shin-Etsu Chemical Co SHECY	$22.77	$13.22	-42%
BASF SE BAS	€50.82	€9.45	-81%
Ningxia Baofeng Energy Group 600989	¥22.46	¥37.07	+65%
Dow Inc D1OW34	R$43.91	R$31.57	-28%
Ganfeng Lithium Group 002460	¥65.65	¥18.75	-71%

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Frequently asked questions

Is 2198 (2198) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$6.95 versus a price of HK$2.75 — about +153% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 2198?

Our model-based fair value for 2198 is HK$6.95 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$2.75.

What is the quality score of 2198?

2198 has a Quality Score of 45/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 2198 (2198)?

2198 reported trailing-twelve-month revenue of about HK$18.5B (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 2198?

The net profit margin of 2198 is about 2.2%, meaning it keeps roughly 2.2% of revenue as net income. Based on the latest reported figures.

Does 2198 pay a dividend?

2198 currently shows a dividend yield of about 1.65% relative to its recent price (as of Jul 2, 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.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.