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KML Technology Group Ltd (8065) Fair Value & Analysis

Industrials · HK · Market cap HK$50.2M

KT KML Technology Group Ltd 8065 · HK
PriceHK$0.1390
Fair ValueHK$0.3700
Upside+166.2%
Quality54/100
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Weak Growth
Loss-making · -8.0% net margin
generates free cash flow
Mixed vs. peers (5/10)
Narrow moat 10/100
Evidence: Low Range HK$0.3100 – HK$0.4300 Share as image

Fair value as of: Aug 13, 2026

From 7 valuation models · updated 3 days ago

Share price +3.7% over the past month.

A solid business, screening 166% undervalued on our models.

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What matters now

  • The price is below even our cautious bear case (HK$0.3100). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$0.3553 HK$0.0820 Fair Value HK$0.3700 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.0820 – HK$0.3553 · fair‑value band HK$0.3100 – HK$0.4300 · the HK$0.1390 price screens below the HK$0.3700 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

KML Technology Group Ltd (8065) currently trades at HK$0.1390, while our model-based Fair Value estimate is HK$0.3700, implying the stock looks roughly 166.2% undervalued today. The Quality Score stands at 54/100 (solid 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: low), always confirm before acting.

Over the trailing twelve months, KML Technology Group Ltd generated revenue of HK$143M at a net margin of -8.0%. Revenue declined 38.7% year over year. It earns a return on equity of -8.7%. The balance sheet holds a net cash position of HK$65.2M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.3100 (bear case) to HK$0.4300 (bull case); at HK$0.1390, 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 11% below its 52-week high and 53% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 10% fair-value upside, at 166%, 8065 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
Growth DCF HK$0.2900 HK$0.3200 HK$0.3600 72
Rev-Margin DCF HK$0.3000 HK$0.3600 HK$0.4300 67
NCAV (Graham) HK$0.1500 HK$0.2100 HK$0.3100 50
All 7 models by family
DCF Models
FCF DCF HK$0.2900 HK$0.3200 HK$0.3700 38
5Y Revenue Exit HK$0.3000 HK$0.3500 HK$0.4300 39
10Y Revenue Exit HK$0.2900 HK$0.3300 HK$0.3600 36
Multiples
EV/Revenue HK$0.3200 HK$0.3800 HK$0.4400 43
Asset-Based
NCAV (Graham) HK$0.1500 HK$0.2100 HK$0.3100 50
Growth DCF
Growth DCF HK$0.2900 HK$0.3200 HK$0.3600 72
Rev-Margin DCF HK$0.3000 HK$0.3600 HK$0.4300 67

Widest divergence: Multiples (HK$0.3800) versus Asset-Based (HK$0.2100). Highest evidence: Growth DCF (72).

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Key figures & financial health

Revenue (TTM) HK$143M
Revenue growth (YoY) -38.7%
Net margin -8.0%
Return on equity -8.7%
Free cash flow HK$6.5M FY2025
Operating margin -12.1%
More key figures
EPS growth (YoY) +71.3%
Net cash HK$65.2M FY2026

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

Quality Score breakdown

Overall quality 54/100

Of which business quality 57 · Market factors (momentum, volatility) 72

Profitability 17
Margins and returns on capital today
Quality Growth 5
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 98
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 79
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

KML Technology Group Limited, an investment holding company, provides mechanical and electrical engineering solutions and services in Hong Kong, Taiwan, and internationally.

Full company description

KML Technology Group Limited, an investment holding company, provides mechanical and electrical engineering solutions and services in Hong Kong, Taiwan, and internationally. It operates through Transportation Mission Critical System Solution; Mobile Ticketing and Digital Payment Solutions and Services; M&E Technology Solutions and Engineering Services; Digital Fabrication and Maintenance Service; and Sales of Products, Parts and Components segments. The company offers railway signalling, communication, control system, and point operating equipment; and mobile ticketing and digital payment solutions and services. It also provides computerised and advanced maintenance support services for various systems, such as AFC system and trackside signalling system, terminals, and equipment; and part or component replacement, equipment upgrades and improvements, hardware and software upgrade/replacement services, testing, and routine preventive, corrective, and workshop maintenance services. In addition, the company engages in the design, installation, testing and commissioning, and maintenance of miscellaneous mechanical and electrical engineering systems, such as railway station mechanical and electrical engineering services and architectural works, train-borne systems provisions, trackside and depot mechanical and electrical works, and other renovation works; and supplying of railway signalling and AFC related products, parts, and components. It serves transportation companies, engineering companies, and governmental department. KML Technology Group Limited was founded in 1977 and is headquartered in Sha Tin, Hong Kong.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

KML Technology Group Ltd reported revenue of HK$143M in FY2026 versus HK$163M in FY2022, a compound −3.2%/yr. Reported net income was −HK$11.4M in FY2026.

Growth Quality 18/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$143M
Latest YoY
−27.1%
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.
−2.3%
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.
−8.7%
Avg. growth/yr (10Y) 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.
−1.4%
Revenue −3.2%/yr
FY22 HK$163M
FY23 HK$153M
FY24 HK$194M
FY25 HK$196M
FY26 HK$143M
Net income
FY22 HK$7.9M
FY23 −HK$32.2M
FY24 −HK$13.8M
FY25 HK$97.0K
FY26 −HK$11.4M

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Cite: Fair Value Calculator (2026). "KML Technology Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/8065

Peer Group

Infrastructure Operations · 68 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 54 · Above median
Fair Value upside +166% · Top 25%
Return on assets -5% · Bottom 25%
Net margin (TTM) -8% · Bottom 25%
Operating margin (TTM) -12% · Bottom 25%
Revenue growth -39% · Bottom 25%

Valuation Multiples vs Infrastructure Operations median · lower = cheaper

P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 0.05× · Cheaper than 75% of peers
P/FCF 1.0× · 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 100 · sector 46
FUTURE 0 · sector 10
PAST 0 · sector 25
HEALTH 0 · sector 71
DIVIDEND 0 · sector 81

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

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Frequently asked questions

Is KML Technology Group Ltd (8065) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.3700 versus a price of HK$0.1390, about +166% (undervalued).
What is the fair value of 8065?
Our model-based fair value for KML Technology Group Ltd is HK$0.3700 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.1390.
What is the quality score of 8065?
KML Technology Group Ltd has a Quality Score of 54/100. 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 KML Technology Group Ltd (8065)?
KML Technology Group Ltd reported trailing-twelve-month revenue of about HK$143M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 8065?
The net profit margin of KML Technology Group Ltd is about -8.0%, meaning it is currently running at a net loss. 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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