3996 (3996) Fair Value & Analysis

Industrials · Market cap HK$50.0B

3 3996 3996 · HK

PriceHK$1.11

Fair ValueHK$2.06

Upside+85.6%

Quality46/100

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Evidence: Medium Range HK$1.61 – HK$2.67

Fair value as of: Jul 2, 2026

From 16 valuation models · updated today

Share price −11.9% over the past month.

Price vs Fair Value (12 months)

12‑month range HK$1.04 – HK$1.60 · fair‑value band HK$1.61 – HK$2.67 · the HK$1.11 price screens below the HK$2.06 fair value. As of Jul 2, 2026.

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Analysis

3996 (3996) currently trades at HK$1.11, while our model-based Fair Value estimate is HK$2.06 — implying the stock looks roughly 85.6% undervalued today. We read business quality at 46/100 (below-average 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, 3996 generated revenue of HK$455B at a net margin of 1.3%. Revenue grew 1.6% year over year. It earns a return on equity of 4.4%. Net debt stands at HK$265B. Fundamentals as of Jul 2, 2026

Key figures & financial health

Revenue (TTM) HK$455B

Revenue growth (YoY) +1.6%

Net margin 1.3%

Return on equity 4.4%

Free cash flow −HK$28.6B FY2025

P/E ratio 7.5

More key figures

Operating margin 4.6%

EPS (TTM) HK$0.1470

EPS growth (YoY) -8.1%

Net debt HK$265B FY2025

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

3996 reported revenue of HK$441B in FY2025 versus HK$322B in FY2021, a compound +8.1%/yr. Reported net income was HK$5.7B in FY2025, compounding −3.3%/yr from FY2021.

Revenue +8.1%/yr

FY21 HK$322B

FY22 HK$366B

FY23 HK$406B

FY24 HK$437B

FY25 HK$441B

Net income −3.3%/yr

FY21 HK$6.5B

FY22 HK$7.8B

FY23 HK$8.0B

FY24 HK$8.4B

FY25 HK$5.7B

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Similar stocks

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

Stock	Price	Fair Value	vs Fair Value
Larsen & Toubro Limited LTOD	$0.4110	$0.0100	-98%
Samsung C&T Corporation 028260	407,500 KRW	236,704 KRW	-42%
China State Construction Engineering Corporation 601668	¥4.74	¥15.02	+217%
TopBuild Corp BLD	7,547 MXN	3,472 MXN	-54%
000720 000720	130,300 KRW	55,602 KRW	-57%
United Integrated Services Co 2404	1,205 TWD	1,891 TWD	+57%

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Frequently asked questions

Is 3996 (3996) undervalued?

As of Jul 2, 2026, our model estimates a fair value of HK$2.06 versus a price of HK$1.11 — about +86% (undervalued). Model-based estimate, not financial advice.

What is the fair value of 3996?

Our model-based fair value for 3996 is HK$2.06 (as of Jul 2, 2026), built from audited fundamentals. The current price is HK$1.11.

What is the quality score of 3996?

3996 has a Quality Score of 46/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.

What is the revenue of 3996 (3996)?

3996 reported trailing-twelve-month revenue of about HK$455B (latest available figure, as of Jul 2, 2026).

What is the net profit margin of 3996?

The net profit margin of 3996 is about 1.3%, meaning it keeps roughly 1.3% 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.