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Bama Tea Co Ltd (6980) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$1.8B

BT Bama Tea Co Ltd 6980 · HK
PriceHK$29.00
Fair ValueHK$58.28
Upside+101.0%
Quality61/100
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Healthy Growth
Solidly profitable · 10.1% net margin
generates free cash flow
Ranks above peers (11/13)
Moderate moat 53/100
Evidence: High Range HK$44.35 – HK$73.68 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 6 days ago

Fair value updated Aug 13, 2026, revised from HK$60.24 to HK$58.28 (−3.3%) since Aug 12, 2026. Share price +25.8% over the past month.

A solid business, screening 101% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$44.35). The market is more pessimistic than our downside scenario.
  • Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (10 months)

HK$96.15 HK$18.95 Fair Value HK$58.28 Oct 2025 Aug 2026

White line = price, green steps = our fair value per fiscal year. As of Aug 13, 2026.

How to read this chart

10‑month range HK$18.95 – HK$96.15 · fair‑value band HK$44.35 – HK$73.68 · the HK$29.00 price screens below the HK$58.28 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Aug 13, 2026.

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Analysis

Bama Tea Co Ltd (6980) currently trades at HK$29.00, while our model-based Fair Value estimate is HK$58.28, implying the stock looks roughly 101.0% undervalued today. The Quality Score stands at 61/100 (solid quality), in the Consumer Defensive 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, Bama Tea Co Ltd generated revenue of HK$2.2B at a net margin of 10.1%. Revenue grew 9.6% year over year. It earns a return on equity of 15.7%. The stock trades on a trailing P/E of 7.1 (as of Jul 2, 2026). Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$44.35 (bear case) to HK$73.68 (bull case); at HK$29.00, 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 75% below its 52-week high and 45% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -14% fair-value upside, at 101%, 6980 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.

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$28.71 HK$33.14 HK$58.16 76
Growth DCF HK$59.15 HK$72.08 HK$87.30 72
Growth-Adj P/E HK$49.60 HK$70.85 HK$92.11 68
All 23 models by family
DCF Models
FCF DCF HK$58.40 HK$72.55 HK$89.96 38
Owner Earnings HK$64.14 HK$80.25 HK$100.05 31
5Y Revenue Exit HK$57.83 HK$77.47 HK$101.43 39
5Y EBITDA Exit HK$74.11 HK$106.26 HK$142.03 41
5Y P/E Exit HK$67.70 HK$94.93 HK$121.87 38
10Y Revenue Exit HK$56.63 HK$73.10 HK$93.07 36
10Y EBITDA Exit HK$66.96 HK$90.84 HK$119.96 37
10Y P/E Exit HK$63.30 HK$83.86 HK$106.61 35
Earnings-Based
Graham-Dodd HK$28.52 HK$65.13 HK$83.48 54
PEG = 1.0 HK$10.83 HK$15.48 HK$20.12 46
EPV HK$52.57 HK$57.45 HK$61.51 59
Multiples
P/E Multiple HK$66.06 HK$88.08 HK$110.10 63
P/S Multiple HK$49.74 HK$66.32 HK$82.90 58
P/B Multiple HK$53.48 HK$71.31 HK$89.13 55
EV/EBIT HK$88.98 HK$113.04 HK$137.11 53
EV/EBITDA HK$95.44 HK$121.66 HK$147.89 54
EV/Revenue HK$60.30 HK$78.96 HK$97.61 43
Asset-Based
NCAV (Graham) HK$16.03 HK$21.49 HK$32.07 50
Growth DCF
Growth DCF HK$59.15 HK$72.08 HK$87.30 72
Rev-Margin DCF HK$57.83 HK$78.06 HK$99.66 67
Economic Profit
Residual Income HK$28.71 HK$33.14 HK$58.16 76
ROIC Compounder HK$53.70 HK$60.14 HK$66.47 67
Growth Earnings
Growth-Adj P/E HK$49.60 HK$70.85 HK$92.11 68

Widest divergence: DCF Models (HK$80.25) versus Asset-Based (HK$21.49). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$2.2B
Revenue growth (YoY) +9.6%
Net margin 10.1%
Return on equity 15.7%
Free cash flow HK$250M FY2025
P/E ratio 7.1 as of Jul 2, 2026
More key figures
Operating margin 11.8%
EPS (TTM) HK$1.58
EPS growth (YoY) +25.6%

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 64 · Market factors (momentum, volatility) 27

Profitability 62
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 32
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 59
Price trend over the last 3–12 months (market factor)
52W Momentum 5
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

BAMA TEA Co., Ltd. produces, processes, and sells tea leaves and other tea products in China. The company tea, which includes Oolong tea, black tea, dark tea, white tea, green tea, and yellow tea; tea-related derivatives, such as tea ware, tea snacks, and tea beverages. It offers its products under the Bama brand name.

Full company description

BAMA TEA Co., Ltd. produces, processes, and sells tea leaves and other tea products in China. The company tea, which includes Oolong tea, black tea, dark tea, white tea, green tea, and yellow tea; tea-related derivatives, such as tea ware, tea snacks, and tea beverages. It offers its products under the Bama brand name. In addition, the company provides liquor, incense sticks, tea toys, pre-opening training services, as well as tea lounge services and franchises. The company was incorporated in 1997 and is based in Shenzhen, China.

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

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Bama Tea Co Ltd reported revenue of HK$2.2B in FY2025 versus HK$1.8B in FY2022, a compound +6.5%/yr. Reported net income was HK$222M in FY2025, compounding +10.2%/yr from FY2022.

Growth Quality 82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
HK$2.2B
Latest YoY
+2.5%
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.
+6.5%
Revenue +6.5%/yr
FY22 HK$1.8B
FY23 HK$2.1B
FY24 HK$2.1B
FY25 HK$2.2B
Net income +10.2%/yr
FY22 HK$166M
FY23 HK$206M
FY24 HK$224M
FY25 HK$222M

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Cite: Fair Value Calculator (2026). "Bama Tea Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/6980

Peer Group

Packaged Foods · 658 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 61 · Above median
Fair Value upside +101% · Top 25%
Return on equity (TTM) 16% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 12% · Top 25%
Revenue growth 10% · Above median
Dividend yield (TTM) 2.0% · Below median

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/E (TTM) 7.1× · Cheaper than 75% of peers
P/B 1.07× · Cheaper than median
P/S (TTM) 0.83× · Pricier than median
P/FCF 0.9× · Cheaper than median
EV/EBITDA 2.6× · Cheaper than 75% of peers

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 25
FUTURE48 · sector 19
PAST63 · sector 28
HEALTH0 · sector 96
DIVIDEND40 · sector 52

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 Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Nestlé India Limited NESTLEIND ₹1,507 ₹362.37 -76%
Britannia Industries Limited BRITANNIA ₹5,511 ₹1,765 -68%
Tata Consumer Products Limited TATACONSUM ₹1,062 ₹327.27 -69%
PT Indofood CBP Sukses Makmur Tbk ICBP 7,550 IDR 12,864 IDR +70%
Samyang Foods Co 003230 1,219,000 KRW 1,010,543 KRW -17%
Vietnam Dairy Products Joint Stock Company VNM 61,600 VND 52,858 VND -14%
Patanjali Foods Limited PATANJALI ₹350.95 ₹144.77 -59%
PT Mayora Indah Tbk, MYOR 1,650 IDR 2,699 IDR +64%
PT Cisarua Mountain Dairy Tbk CMRY 4,610 IDR 4,350 IDR -6%
Nongshim Co 004370 389,500 KRW 530,619 KRW +36%

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Frequently asked questions

Is Bama Tea Co Ltd (6980) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$58.28 versus a price of HK$29.00, about +101% (undervalued).
What is the fair value of 6980?
Our model-based fair value for Bama Tea Co Ltd is HK$58.28 (as of Aug 13, 2026), built from audited fundamentals. The current price: HK$29.00.
What is the quality score of 6980?
Bama Tea Co Ltd has a Quality Score of 61/100. 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 Bama Tea Co Ltd (6980)?
Bama Tea Co Ltd reported trailing-twelve-month revenue of about HK$2.2B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 6980?
The net profit margin of Bama Tea Co Ltd is about 10.1%, meaning it keeps roughly 10.1% 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.

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