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WellCell Holdings (2477) Fair Value & Analysis

Communication Services · HK · Market cap HK$1.4B

WH WellCell Holdings 2477 · HK
PriceHK$0.2370
Fair ValueHK$0.0700
Upside-70.5%
Quality36/100
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Weak Growth
Thin margins · 7.0% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/10)
Narrow moat 25/100
Evidence: Medium Range HK$0.0500 – HK$0.0900 Share as image

Fair value as of: Aug 5, 2026

From 10 valuation models · updated 5 days ago

Share price −15.4% over the past month.

Below-average quality, and screening another 70% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.0900). The favourable scenario is already priced in.
  • Weak quality (36/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (3 years)

HK$6.96 HK$0.1680 Fair Value HK$0.0700 Jan 2024 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

31‑month range HK$0.1680 – HK$6.96 · fair‑value band HK$0.0500 – HK$0.0900 · the HK$0.2370 price screens above the HK$0.0700 fair value. Dashed = 300-day average. As of Aug 5, 2026.

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Analysis

WellCell Holdings (2477) currently trades at HK$0.2370, while our model-based Fair Value estimate is HK$0.0700, implying the stock looks roughly 70.5% overvalued today. The Quality Score stands at 36/100 (below-average quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, WellCell Holdings generated revenue of HK$219M at a net margin of 7.0%. Revenue declined 25.4% year over year. It earns a return on equity of 7.3%. The balance sheet holds a net cash position of HK$23.3M. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$0.0500 (bear case) to HK$0.0900 (bull case); at HK$0.2370, the current price sits above 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. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at -70%, 2477 screens richer 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
Residual Income HK$0.0400 HK$0.0400 HK$0.0400 76
Gordon GGM HK$0.0300 HK$0.0400 HK$0.0500 70
Growth-Adj P/E HK$0.0400 HK$0.0600 HK$0.0800 68
All 10 models by family
DCF Models
Owner Earnings HK$0.0300 HK$0.0300 HK$0.0400 31
Earnings-Based
Graham-Dodd HK$0.0300 HK$0.0500 HK$0.0600 54
Dividend Discount
Gordon GGM HK$0.0300 HK$0.0400 HK$0.0500 70
DDM Multi-Stage HK$0.0300 HK$0.0400 HK$0.0500 61
Multiples
P/E Multiple HK$0.0600 HK$0.0800 HK$0.1000 63
P/S Multiple HK$0.0500 HK$0.0600 HK$0.0800 58
P/B Multiple HK$0.0500 HK$0.0600 HK$0.0800 55
Asset-Based
NCAV (Graham) HK$0.0300 HK$0.0400 HK$0.0500 50
Economic Profit
Residual Income HK$0.0400 HK$0.0400 HK$0.0400 76
Growth Earnings
Growth-Adj P/E HK$0.0400 HK$0.0600 HK$0.0800 68

Widest divergence: Multiples (HK$0.0600) versus DCF Models (HK$0.0300). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$219M
Revenue growth (YoY) -25.4%
Net margin 7.0%
Return on equity 7.3%
Free cash flow −HK$35.0M FY2026
Operating margin -12.9%
More key figures
EPS (TTM) HK$0.0100
EPS growth (YoY) -19.1%
Net cash HK$23.3M FY2026

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

Quality Score breakdown

Overall quality 36/100

Of which business quality 39 · Market factors (momentum, volatility) 15

Profitability 32
Margins and returns on capital today
Quality Growth 7
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 24
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 0
Price trend over the last 3–12 months (market factor)
52W Momentum 0
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

WellCell Holdings Co., Limited, through its subsidiaries, operates as a telecommunication network support, and information and communication technology (ICT) integration services provider in the People's Republic of China and Hong Kong.

Full company description

WellCell Holdings Co., Limited, through its subsidiaries, operates as a telecommunication network support, and information and communication technology (ICT) integration services provider in the People's Republic of China and Hong Kong. The company offers telecommunication network support services, including wireless telecommunication network enhancement, and telecommunication network infrastructure maintenance and engineering services. It also provides ICT integration services; and engages in the development and sale of telecommunication network-related software and provision of customised software. It serves telecommunication operators, telecommunication network and equipment manufacturers and telecommunication network and technical service providers and general contractors, and others. The company was founded in 2003 and is headquartered in Zhuhai, the People's Republic of China. WellCell Holdings Co., Limited is a subsidiary of WellCell Group.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

WellCell Holdings reported revenue of HK$213M in FY2026 versus HK$203M in FY2022, a compound +1.2%/yr. Reported net income was HK$14.9M in FY2026, compounding −12.5%/yr from FY2022.

Growth Quality 23/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$213M
Latest YoY
−23.5%
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.
−2.0%
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.
+1.7%
Avg. growth/yr (6Y) 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.
+2.8%
Revenue +1.2%/yr
FY22 HK$203M
FY23 HK$227M
FY24 HK$256M
FY25 HK$278M
FY26 HK$213M
Net income −12.5%/yr
FY22 HK$25.5M
FY23 HK$24.3M
FY24 HK$20.4M
FY25 HK$20.1M
FY26 HK$14.9M

2477 screens 70% overvalued. Compare with China Mobile Limited →

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Cite: Fair Value Calculator (2026). "WellCell Holdings Fair Value". https://www.fairvalue-calculator.com/stock/2477

Peer Group

Telecom Services · 250 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 36 · Bottom 25%
Fair Value upside −71% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets -2% · Bottom 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) -13% · Bottom 25%
Revenue growth -25% · Bottom 25%

Valuation Multiples vs Telecom Services median · lower = cheaper

P/B 0.85× · Cheaper than median
P/S (TTM) 0.84× · 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 0 · sector 29
FUTURE 0 · sector 15
PAST 29 · sector 28
HEALTH 100 · sector 88
DIVIDEND 0 · sector 73

VALUE 0: the price sits above our fair-value range.

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.

Similar stocks

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

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is WellCell Holdings (2477) overvalued or undervalued?
As of Aug 5, 2026, our model estimates a fair value of HK$0.0700 versus a price of HK$0.2370, about −70% (overvalued).
What is the fair value of 2477?
Our model-based fair value for WellCell Holdings is HK$0.0700 (as of Aug 5, 2026), built from audited fundamentals. The current price is HK$0.2370.
What is the quality score of 2477?
WellCell Holdings has a Quality Score of 36/100. 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 WellCell Holdings (2477)?
WellCell Holdings reported trailing-twelve-month revenue of about HK$219M (latest available figure, as of Aug 5, 2026).
What is the net profit margin of 2477?
The net profit margin of WellCell Holdings is about 7.0%, meaning it keeps roughly 7.0% 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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