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Sunray Engineering Group Ltd (8616) Fair Value & Analysis

Industrials · HK · Market cap HK$61.0M

SE Sunray Engineering Group Ltd 8616 · HK
PriceHK$0.0700
Fair ValueHK$0.0980
Upside+40.0%
Quality71/100
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Weak Growth
Thin margins · 2.4% net margin
generates free cash flow
Mixed vs. peers (5/9)
Narrow moat 22/100
Evidence: High Range HK$0.0840 – HK$0.0980 Share as image

Fair value as of: Aug 17, 2026

From 22 valuation models · updated today

Fair value updated Aug 17, 2026, revised from HK$0.1000 to HK$0.0980 (−2.0%) since Aug 13, 2026. Share price +11.1% over the past month.

A solid business, screening 40% undervalued on our models.

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What matters now

  • The rarer combination: high quality (71/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (HK$0.0840). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

HK$0.1650 HK$0.0260 Fair Value HK$0.0980 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 17, 2026.

How to read this chart

60‑month range HK$0.0260 – HK$0.1650 · fair‑value band HK$0.0840 – HK$0.0980 · the HK$0.0700 price screens below the HK$0.0980 fair value. Dashed = 300-day average. As of Aug 17, 2026.

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Analysis

Sunray Engineering Group Ltd (8616) currently trades at HK$0.0700, while our model-based Fair Value estimate is HK$0.0980, implying the stock looks roughly 40.0% undervalued today. The Quality Score stands at 71/100 (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: high), always confirm before acting.

Over the trailing twelve months, Sunray Engineering Group Ltd generated revenue of HK$177M at a net margin of 2.4%. Revenue grew 7.6% year over year. It earns a return on equity of 2.4%. The balance sheet holds a net cash position of HK$56.4M. Fundamentals as of Aug 17, 2026

Our scenario range runs from HK$0.0840 (bear case) to HK$0.0980 (bull case); at HK$0.0700, 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 10% below its 52-week high and 112% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at 40%, 8616 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$0.1100 HK$0.1000 HK$0.0700 76
Growth DCF HK$0.3000 HK$0.3500 HK$0.4200 72
Growth-Adj P/E HK$0.0500 HK$0.0700 HK$0.0900 68
All 22 models by family
DCF Models
FCF DCF HK$0.2900 HK$0.3400 HK$0.4300 38
Owner Earnings HK$0.1300 HK$0.1400 HK$0.1600 31
5Y Revenue Exit HK$0.2100 HK$0.2300 HK$0.2700 39
5Y EBITDA Exit HK$0.2300 HK$0.2800 HK$0.3400 41
5Y P/E Exit HK$0.2100 HK$0.2300 HK$0.2700 38
10Y Revenue Exit HK$0.2500 HK$0.2700 HK$0.3000 36
10Y EBITDA Exit HK$0.2600 HK$0.3000 HK$0.3300 37
10Y P/E Exit HK$0.2500 HK$0.2700 HK$0.3000 35
Earnings-Based
Graham-Dodd HK$0.0300 HK$0.0500 HK$0.0500 54
EPV HK$0.1100 HK$0.1100 HK$0.1200 59
Multiples
P/E Multiple HK$0.0700 HK$0.0900 HK$0.1100 63
P/S Multiple HK$0.0500 HK$0.0700 HK$0.0900 58
P/B Multiple HK$0.0500 HK$0.0700 HK$0.0900 55
EV/EBIT HK$0.1600 HK$0.1900 HK$0.2100 53
EV/EBITDA HK$0.1900 HK$0.2300 HK$0.2700 54
EV/Revenue HK$0.1300 HK$0.1600 HK$0.1800 43
Asset-Based
NCAV (Graham) HK$0.0900 HK$0.1200 HK$0.1800 50
Growth DCF
Growth DCF HK$0.3000 HK$0.3500 HK$0.4200 72
Rev-Margin DCF HK$0.2100 HK$0.2400 HK$0.2800 67
Economic Profit
Residual Income HK$0.1100 HK$0.1000 HK$0.0700 76
ROIC Compounder HK$0.1100 HK$0.1100 HK$0.1200 67
Growth Earnings
Growth-Adj P/E HK$0.0500 HK$0.0700 HK$0.0900 68

Widest divergence: DCF Models (HK$0.2700) versus Earnings-Based (HK$0.0500). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$177M
Revenue growth (YoY) +7.6%
Net margin 2.4%
Return on equity 2.4%
Free cash flow HK$29.6M FY2026
Operating margin 3.8%
More key figures
EPS growth (YoY) -21.4%
Net cash HK$56.4M FY2026

Figures from reported company fundamentals · as of Aug 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 72 · Market factors (momentum, volatility) 69

Profitability 31
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 83
Earnings quality: real cash, not paper profit
Fin. Strength 83
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 91
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

Sunray Engineering Group Limited, an investment holding company, engages in the provision of building protection works, and supply of building protection products in Hong Kong, Macau, and Mainland China.

Full company description

Sunray Engineering Group Limited, an investment holding company, engages in the provision of building protection works, and supply of building protection products in Hong Kong, Macau, and Mainland China. The company provides selection and use of building protection products for protection against water, thermal, acoustic, and fire; and identifies, sources, promotes, and distributes suitable building protection products. It also offers waterproofing, tiling, flooring, and other products for residential and commercial buildings, and community facilities, such as sports centres, theatre, hospitals, power station and other facilities. The company was founded in 1988 and is based in Kowloon, Hong Kong. Sunray Engineering Group Limited operates as a subsidiary of Ultra Success Industries Limited.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Sunray Engineering Group Ltd reported revenue of HK$177M in FY2026 versus HK$200M in FY2022, a compound −2.9%/yr. Reported net income was HK$4.2M in FY2026, compounding −21.0%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
HK$177M
Latest YoY
+9.2%
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.
−7.3%
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.
−0.2%
Avg. growth/yr (8Y) 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.
+1.9%
Revenue −2.9%/yr
FY22 HK$200M
FY23 HK$223M
FY24 HK$166M
FY25 HK$162M
FY26 HK$177M
Net income −21.0%/yr
FY22 HK$10.9M
FY23 HK$5.5M
FY24 −HK$798K
FY25 −HK$13.3M
FY26 HK$4.2M

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Cite: Fair Value Calculator (2026). "Sunray Engineering Group Ltd Fair Value". https://www.fairvalue-calculator.com/stock/8616

Peer Group

Engineering & Construction · 837 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 71 · Top 25%
Fair Value upside +43% · Top 25%
Return on equity (TTM) 2% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 4% · Below median
Revenue growth 8% · Above median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/S (TTM) 0.04× · Cheaper than 75% of peers
P/FCF 0.3× · 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.

VALUE 91 · sector 14
FUTURE 38 · sector 15
PAST 10 · sector 26
HEALTH 0 · sector 94
DIVIDEND 0 · sector 43

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 17, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Hyundai Engineering & Construction Co 000720 113,700 KRW 61,453 KRW -46%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹230.00 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 46,350 KRW 43,924 KRW -5%

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Frequently asked questions

Is Sunray Engineering Group Ltd (8616) overvalued or undervalued?
As of Aug 17, 2026, our model estimates a fair value of HK$0.0980 versus a price of HK$0.0700, about +40% (undervalued).
What is the fair value of 8616?
Our model-based fair value for Sunray Engineering Group Ltd is HK$0.0980 (as of Aug 17, 2026), built from audited fundamentals. The current price is HK$0.0700.
What is the quality score of 8616?
Sunray Engineering Group Ltd has a Quality Score of 71/100. 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 Sunray Engineering Group Ltd (8616)?
Sunray Engineering Group Ltd reported trailing-twelve-month revenue of about HK$177M (latest available figure, as of Aug 17, 2026).
What is the net profit margin of 8616?
The net profit margin of Sunray Engineering Group Ltd is about 2.4%, meaning it keeps roughly 2.4% 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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