As of 2025-07-16, the Fair Value of China Investment and Finance Group Ltd (1226.HK) is -0.05 HKD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 1.15 HKD, the upside of China Investment and Finance Group Ltd is -104.8%.
With the market price of 1.15 HKD and our fair value calculation, China Investment and Finance Group Ltd (1226.HK) is not a good investment. Investing in 1226.HK stocks now will result in a potential loss of 104.8%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
Historical Earnings | ||||||
03-2021 | 03-2022 | 03-2023 | 03-2024 | 03-2025 | 5Y Avg | |
Net income | 3.57 | -7.02 | -41.15 | -37.77 | -5.47 | -18 |
YoY growth | 102.8% | -296.6% | -486.4% | 8.2% | 85.5% | -117.3% |
Market Cap (mil) | EPS | Fair Value | Upside | ||
a | |||||
China Investment and Finance Group Ltd | 574 | -0 | -0.05 | -104.8% | |
SHK Hong Kong Industries Ltd | 26,685 | -0.5 | -2.55 | -121.8% | |
China Vered Financial Holding Corporation Ltd | 1,933 | 0.1 | 2.91 | 188.1% | |
Wealthking Investments Ltd | 957 | 0 | 0.03 | -66.5% | |
Sheng Yuan Holdings Ltd | 164 | 0 | 0.24 | -2.8% | |
China Innovation Investment Ltd | 141 | 0 | 0 | -82.2% | |
UBA Investments Ltd | 57 | 0 | 0.04 | -10.3% | |
AID Life Science Holdings Ltd | 33 | 0 | 0.18 | 203.4% | |
Cocoon Holdings Ltd | 24 | -0.7 | -3.38 | -1707.7% |
Market Cap (mil) | 574 |
P/E | - |
Forward P/E | - |
EPS | -0.01 |
Avg earnings growth rate | -117.3% |
TTM earnings | -5 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.