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Watts International Maritime Company (2258) Fair Value & Analysis

Industrials · HK · Market cap HK$252M

WI Watts International Maritime Company 2258 · HK
PriceHK$0.3300
Fair ValueHK$0.9800
Upside+197.0%
Quality56/100
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Weak Growth
Thin margins · 1.8% net margin
Low debt · generates free cash flow
2.86% dividend yield
Mixed vs. peers (7/13)
Narrow moat 24/100
Evidence: High Range HK$0.7300 – HK$1.22 Share as image

Fair value as of: Aug 5, 2026

From 25 valuation models · updated 6 days ago

Fair value updated Aug 5, 2026, revised from HK$0.9700 to HK$0.9800 (+1.0%) since Jul 2, 2026. Share price −8.3% over the past month.

A solid business, screening 197% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$0.7300). The market is more pessimistic than our downside scenario.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$2.90 HK$0.1437 Fair Value HK$0.9800 Nov 2018 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.

How to read this chart

60‑month range HK$0.1437 – HK$2.90 · fair‑value band HK$0.7300 – HK$1.22 · the HK$0.3300 price screens below the HK$0.9800 fair value. Dashed = 300-day average. As of Aug 5, 2026.

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Analysis

Watts International Maritime Company (2258) currently trades at HK$0.3300, while our model-based Fair Value estimate is HK$0.9800, implying the stock looks roughly 197.0% undervalued today. The Quality Score stands at 56/100 (solid 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, Watts International Maritime Company generated revenue of HK$1.9B at a net margin of 1.8%. Revenue grew 38.0% year over year. It earns a return on equity of 4.7%. The balance sheet holds a net cash position of HK$227M. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$0.7300 (bear case) to HK$1.22 (bull case); at HK$0.3300, 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 51% below its 52-week high and 167% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 25% fair-value upside, at 197%, 2258 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$0.8400 HK$0.8800 HK$0.9300 80
Residual Income HK$0.6000 HK$0.5700 HK$0.4600 76
Rev-Margin DCF HK$1.11 HK$1.40 HK$1.70 74
All 25 models by family
DCF Models
FCF DCF HK$0.8300 HK$0.8800 HK$0.9400 38
Owner Earnings HK$0.9400 HK$1.02 HK$1.11 31
5Y Revenue Exit HK$1.11 HK$1.40 HK$1.76 39
5Y EBITDA Exit HK$1.18 HK$1.52 HK$1.90 41
5Y P/E Exit HK$1.03 HK$1.26 HK$1.49 38
10Y Revenue Exit HK$0.9600 HK$1.17 HK$1.42 36
10Y EBITDA Exit HK$1.02 HK$1.24 HK$1.52 37
10Y P/E Exit HK$0.9400 HK$1.09 HK$1.26 35
Earnings-Based
Graham-Dodd HK$0.2700 HK$0.5800 HK$0.7400 54
PEG = 1.0 HK$0.0900 HK$0.1300 HK$0.1700 46
EPV HK$1.05 HK$1.10 HK$1.14 59
Dividend Discount
Gordon GGM HK$0.0600 HK$0.0900 HK$0.1100 70
DDM Multi-Stage HK$0.0600 HK$0.0800 HK$0.1000 61
Multiples
P/E Multiple HK$0.6300 HK$0.8400 HK$1.05 63
P/S Multiple HK$0.5100 HK$0.6800 HK$0.8500 58
P/B Multiple HK$0.5100 HK$0.6800 HK$0.8500 55
EV/EBIT HK$1.69 HK$2.04 HK$2.39 53
EV/EBITDA HK$1.60 HK$1.91 HK$2.23 54
EV/Revenue HK$1.39 HK$1.71 HK$2.03 43
Asset-Based
NCAV (Graham) HK$0.4400 HK$0.5900 HK$0.8800 50
Growth DCF
Growth DCF HK$0.8400 HK$0.8800 HK$0.9300 80
Rev-Margin DCF HK$1.11 HK$1.40 HK$1.70 74
Economic Profit
Residual Income HK$0.6000 HK$0.5700 HK$0.4600 76
ROIC Compounder HK$1.06 HK$1.12 HK$1.18 72
Growth Earnings
Growth-Adj P/E HK$0.4700 HK$0.6700 HK$0.8700 68

Widest divergence: DCF Models (HK$1.17) versus Dividend Discount (HK$0.0800). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$1.9B
Revenue growth (YoY) +38.0%
Net margin 1.8%
Return on equity 4.7%
Free cash flow HK$19.7M FY2025
P/E ratio 6.1
More key figures
Operating margin 2.9%
EPS (TTM) HK$0.0200
Dividend yield 2.9%
EPS growth (YoY) -68.2%
Net cash HK$227M FY2025

Figures from reported company fundamentals · as of Aug 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 51 · Market factors (momentum, volatility) 66

Profitability 23
Margins and returns on capital today
Quality Growth 88
Are margins and returns improving?
Cashflow 28
Earnings quality: real cash, not paper profit
Fin. Strength 34
Balance sheet, leverage, solvency risk
Investment 98
Disciplined investing over empire-building
Low Volatility 28
Calm price path (market factor)
Momentum 95
Price trend over the last 3–12 months (market factor)
52W Momentum 58
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

Watts International Maritime Company Limited, an investment holding company, provides port, waterway, marine engineering, and municipal public engineering services in the People's Republic of China and Southeast Asia. It operates through two segments, Municipal Public Construction and Marine Construction.

Full company description

Watts International Maritime Company Limited, an investment holding company, provides port, waterway, marine engineering, and municipal public engineering services in the People's Republic of China and Southeast Asia. It operates through two segments, Municipal Public Construction and Marine Construction. The Marine Construction segment includes infrastructure construction of ports, waterway engineering, environmental technology engineering services, and other services. The Municipal Public Construction segment engages in the construction of public infrastructure within cities, urban greening, and construction of buildings. The company was formerly known as Watts International Maritime Engineering Limited and changed its name to Watts International Maritime Company Limited in January 2022. Watts International Maritime Company Limited was incorporated in 2017 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Watts International Maritime Company reported revenue of HK$1.9B in FY2025 versus HK$2.3B in FY2021, a compound −4.5%/yr. Reported net income was HK$33.1M in FY2025, compounding −8.4%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$1.9B
Latest YoY
+22.5%
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.
−3.3%
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.
+0.7%
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.
+5.3%
Revenue −4.5%/yr
FY21 HK$2.3B
FY22 HK$2.1B
FY23 HK$2.1B
FY24 HK$1.5B
FY25 HK$1.9B
Net income −8.4%/yr
FY21 HK$47.1M
FY22 HK$27.1M
FY23 HK$30.8M
FY24 −HK$69.2M
FY25 HK$33.1M
Character of growth · EPS growth decomposed (2015-2025) −8.6 % p.a.
Revenue per share +6.4 pp

of which total revenue +6.3 pp · buybacks/dilution +0.1 pp

EBIT margin −9.9 pp
Tax rate −2.4 pp
Residual (interest, one-offs) −2.8 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). "Watts International Maritime Company Fair Value". https://www.fairvalue-calculator.com/stock/2258

Peer Group

Infrastructure Operations · 64 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 56 · Above median
Fair Value upside +197% · Top 25%
Return on equity (TTM) 5% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 2% · Bottom 25%
Operating margin (TTM) 3% · Bottom 25%
Revenue growth 38% · Top 25%
Dividend yield (TTM) 2.9% · Below median
Debt / equity 0.11× · Lower than median

Valuation Multiples vs Infrastructure Operations median · lower = cheaper

P/E (TTM) 6.1× · Cheaper than 75% of peers
P/B 0.35× · Cheaper than 75% of peers
P/S (TTM) 0.13× · Cheaper than 75% of peers
P/FCF 1.6× · Pricier 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 53
FUTURE 100 · sector 13
PAST 19 · sector 25
HEALTH 95 · sector 71
DIVIDEND 57 · sector 77

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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10 more Infrastructure Operations stocks, each showing price versus our Fair Value estimate (as of Aug 5, 2026).

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Frequently asked questions

Is Watts International Maritime Company (2258) overvalued or undervalued?
As of Aug 5, 2026, our model estimates a fair value of HK$0.9800 versus a price of HK$0.3300, about +197% (undervalued).
What is the fair value of 2258?
Our model-based fair value for Watts International Maritime Company is HK$0.9800 (as of Aug 5, 2026), built from audited fundamentals. The current price is HK$0.3300.
What is the quality score of 2258?
Watts International Maritime Company has a Quality Score of 56/100. 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 Watts International Maritime Company (2258)?
Watts International Maritime Company reported trailing-twelve-month revenue of about HK$1.9B (latest available figure, as of Aug 5, 2026).
What is the net profit margin of 2258?
The net profit margin of Watts International Maritime Company is about 1.8%, meaning it keeps roughly 1.8% of revenue as net income. Based on the latest reported figures.
Does Watts International Maritime Company pay a dividend?
Watts International Maritime Company currently shows a dividend yield of about 2.86% relative to its recent price (as of Aug 5, 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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