Hongcheng Environmental Technology Co Ltd (2265) Fair Value & Analysis
Industrials · HK · Market cap HK$1.2B
Fair value as of: Aug 13, 2026
From 15 valuation models · updated 3 days ago
Share price −13.8% over the past month.
A solid business, screening 78% undervalued on our models.
What matters now
- The price is below even our cautious bear case (HK$1.62). The market is more pessimistic than our downside scenario.
- Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.
Price vs Fair Value (5 years)
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
57‑month range HK$0.5100 – HK$1.80 · fair‑value band HK$1.62 – HK$2.70 · the HK$1.22 price screens below the HK$2.16 fair value. Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Hongcheng Environmental Technology Co Ltd (2265) currently trades at HK$1.22, while our model-based Fair Value estimate is HK$2.16, implying the stock looks roughly 77.8% undervalued today. The Quality Score stands at 59/100 (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: medium), always confirm before acting.
Over the trailing twelve months, Hongcheng Environmental Technology Co Ltd generated revenue of HK$324M at a net margin of 27.4%. Revenue grew 47.5% year over year. It earns a return on equity of 15.0%. Net debt stands at HK$3.8M. Fundamentals as of Aug 13, 2026
Our scenario range runs from HK$1.62 (bear case) to HK$2.70 (bull case); at HK$1.22, 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 36% below its 52-week high and 29% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -33% fair-value upside, at 78%, 2265 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.
All 15 models by family
Widest divergence: Growth Earnings (HK$3.18) versus Asset-Based (HK$0.4200). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 55 · Market factors (momentum, volatility) 52
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
Hongcheng Environmental Technology Company Limited engages in the gold mine hazardous waste treatment services in the People's Republic of China. The company offers gold mine hazardous waste recycling and resource recovery services. The company is also involved in sale of pyrite concentrate and provision of hazardous waste storage rental services.
Full company description
Hongcheng Environmental Technology Company Limited engages in the gold mine hazardous waste treatment services in the People's Republic of China. The company offers gold mine hazardous waste recycling and resource recovery services. The company is also involved in sale of pyrite concentrate and provision of hazardous waste storage rental services. In addition, it produces and sells sulphuric acid, iron powder, electricity by reprocessing pyrite concentrate from the waste treatment services. The company was founded in 2011 and is headquartered in Laizhou, China. Hongcheng Environmental Technology Company Limited operates as a subsidiary of Zeming International Investment Co., Ltd.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Hongcheng Environmental Technology Co Ltd reported revenue of HK$324M in FY2025 versus HK$257M in FY2021, a compound +5.9%/yr. Reported net income was HK$88.5M in FY2025, compounding +0.8%/yr from FY2021.
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Peer Group
Waste Management · 168 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.
Valuation Multiples vs Waste Management median · lower = cheaper
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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Waste Management stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Waste Management, Inc WM | $226.32 | $128.02 | -43% |
| Republic Services, Inc RSG | $215.08 | $120.63 | -44% |
| Waste Connections, Inc WCN | C$230.52 | C$78.67 | -66% |
| Veolia Environnement SA VIE | €34.47 | €23.26 | -33% |
| Clean Harbors, Inc CLH | $316.65 | $154.01 | -51% |
| GFL Environmental Inc GFL | C$57.56 | C$44.27 | -23% |
| GEM Co 002340 | ¥6.75 | ¥5.27 | -22% |
| Zhejiang Weiming Environment Protection Co 603568 | ¥15.68 | ¥20.95 | +34% |
| China Everbright Environment Group 0257 | HK$5.00 | HK$8.96 | +79% |
| Beijing GeoEnviron Engineering & Technology, Inc 603588 | ¥14.10 | ¥9.35 | -34% |
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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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