3986 (3986) Fair Value & Analysis

Technology · Market cap HK$680B

3 3986 3986 · HK

PriceHK$969.50

Fair ValueHK$514.21

Upside-47.0%

Quality67/100

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Evidence: High Range HK$373.99 – HK$617.80

Fair value as of: Jul 2, 2026

From 26 valuation models · updated today

Share price +36.4% over the past month.

Price vs Fair Value (6 months)

6‑month range HK$222.38 – HK$1,241 · fair‑value band HK$373.99 – HK$617.80 · the HK$969.50 price screens above the HK$514.21 fair value. As of Jul 2, 2026.

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Analysis

3986 (3986) currently trades at HK$969.50, while our model-based Fair Value estimate is HK$514.21 — implying the stock looks roughly 47.0% overvalued today. We read business quality at 67/100 (solid quality), in the Technology 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: high).

Over the trailing twelve months, 3986 generated revenue of HK$11.5B at a net margin of 25.0%. Revenue grew 119.4% year over year. It earns a return on equity of 13.7%. The balance sheet holds a net cash position of HK$8.9B. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$11.5B

Revenue growth (YoY) +119%

Net margin 25.0%

Return on equity 13.7%

Free cash flow HK$1.1B FY2025

P/E ratio 194.3

More key figures

Operating margin 41.1%

EPS (TTM) HK$2.46

Dividend yield 0.1%

EPS growth (YoY) +523%

Net cash HK$8.9B FY2025

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

3986 reported revenue of HK$8.9B in FY2025 versus HK$8.3B in FY2021, a compound +1.7%/yr. Reported net income was HK$1.6B in FY2025, compounding −8.6%/yr from FY2021.

Revenue +1.7%/yr

FY21 HK$8.3B

FY22 HK$8.2B

FY23 HK$5.7B

FY24 HK$7.5B

FY25 HK$8.9B

Net income −8.6%/yr

FY21 HK$2.3B

FY22 HK$2.1B

FY23 HK$161M

FY24 HK$1.1B

FY25 HK$1.6B

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Similar stocks

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

Stock	Price	Fair Value	vs Fair Value
NVIDIA Corporation NVDA	$200.42	$96.91	-52%
Taiwan Semiconductor Manufacturing Company TSMN	7,419 MXN	5,870 MXN	-21%
Broadcom Inc 1YD	€345.40	€130.79	-62%
Micron Technology, Inc ZMIC	C$52.57	C$7.68	-85%
Advanced Micro Devices, Inc AMD	$523.20	$91.29	-83%
SK hynix Inc 000660	1,000,000 KRW	1,373,402 KRW	+37%

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Frequently asked questions

Is 3986 (3986) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$514.21 versus a price of HK$969.50 — about −47% (overvalued). Model-based estimate, not financial advice.

What is the fair value of 3986?

Our model-based fair value for 3986 is HK$514.21 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$969.50.

What is the quality score of 3986?

3986 has a Quality Score of 67/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 3986 (3986)?

3986 reported trailing-twelve-month revenue of about HK$11.5B (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 3986?

The net profit margin of 3986 is about 25.0%, meaning it keeps roughly 25.0% of revenue as net income. Based on the latest reported figures.

Does 3986 pay a dividend?

3986 currently shows a dividend yield of about 0.06% 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.