2306 (2306) Fair Value & Analysis

Communication Services · Market cap HK$1.6B

2 2306 2306 · HK

PriceHK$1.95

Fair ValueHK$1.99

Upside+2.1%

Quality51/100

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Evidence: High Range HK$1.49 – HK$2.48

Fair value as of: Jul 2, 2026

From 22 valuation models · updated today

Share price −2.0% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$1.76 – HK$3.55 · fair‑value band HK$1.49 – HK$2.48 · the HK$1.95 price screens below the HK$1.99 fair value. As of Jul 2, 2026.

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Analysis

2306 (2306) currently trades at HK$1.95, while our model-based Fair Value estimate is HK$1.99 — implying the stock looks roughly 2.1% undervalued today. We read business quality at 51/100 (solid quality), in the Communication Services 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, 2306 generated revenue of HK$907M at a net margin of 7.1%. Revenue grew 18.1% year over year. It earns a return on equity of 5.1%. The balance sheet holds a net cash position of HK$705M. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$907M

Revenue growth (YoY) +18.1%

Net margin 7.1%

Return on equity 5.1%

Free cash flow HK$109M FY2025

P/E ratio 21.7

More key figures

Operating margin 5.1%

EPS (TTM) HK$0.0700

EPS growth (YoY) -61.2%

Net cash HK$705M FY2025

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

2306 reported revenue of HK$907M in FY2025 versus HK$1.3B in FY2021, a compound −8.4%/yr. Reported net income was HK$64.2M in FY2025, compounding −33.9%/yr from FY2021.

Revenue −8.4%/yr

FY21 HK$1.3B

FY22 HK$980M

FY23 HK$756M

FY24 HK$765M

FY25 HK$907M

Net income −33.9%/yr

FY21 HK$337M

FY22 HK$1.7B

FY23 −HK$141M

FY24 HK$46.9M

FY25 HK$64.2M

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Similar stocks

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

Stock	Price	Fair Value	vs Fair Value
Netflix, Inc NFC	€64.57	€57.58	-11%
NFLX NFLX	1,422 MXN	720.62 MXN	-49%
1NFLX 1NFLX	€66.96	€32.88	-51%
The Walt Disney Company DIS	C$11.30	C$7.43	-34%
Warner Bros. Discovery, Inc WBD	$26.24	$9.57	-64%
Universal Music Group UMG	€18.23	€14.73	-19%

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Frequently asked questions

Is 2306 (2306) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$1.99 versus a price of HK$1.95 — about +2% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 2306?

Our model-based fair value for 2306 is HK$1.99 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$1.95.

What is the quality score of 2306?

2306 has a Quality Score of 51/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 2306 (2306)?

2306 reported trailing-twelve-month revenue of about HK$907M (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 2306?

The net profit margin of 2306 is about 7.1%, meaning it keeps roughly 7.1% 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.

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