· EPS growth accelerated to 48.6% in 1H2026 as forecast by the management on 12 Nov 2025 (HK$0.104 vs HK$0.07 in 1H2025), demonstrating strong operational momentum and margin expansion.
· Net profit surged at least 48.1% YoY to minimum HK$40
million, significantly outpacing the prior half-year comparison of HK$27
million in 1H2025.
· Consistent profitability trajectory across three
consecutive reporting periods (1H2025, 2H2025, 1H2026), with sequential EPS
improvements of 28.6% and 15.6%, indicating sustainable business fundamentals
rather than one-off gains.
· Management confidence is evident in the early
profit alert announcement, signaling visibility into sustained profitability
and potential for further positive surprises when full results are released.
Conclusion:
The PEG ratio stands at an exceptionally low 0.17, implying a target price of HK$6.50 if the current growth rate is sustained. This represents potential upside of about 500%, or a 6-bagger opportunity from the current price of HK$1.08. Under a more conservative valuation scenario applying a normalized P/E multiple of 12x, the stock could reach HK$2.50, still offering meaningful upside of 131%.
Superphang
https://superphang.blogspot.com
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