CALB Group (SEHK:3931): Revisiting Valuation After Strong Earnings Growth in 2025

CALB Group (SEHK:3931) just released earnings for the nine months to September 2025, reporting revenue and net income more than doubling from a year earlier. This is a key development for investors watching the stock.

See our latest analysis for CALB Group.

CALB Group’s latest earnings surge comes on the heels of a remarkable run, with a year-to-date share price return of 176.22% and a 1-year total shareholder return of 190.88%. Momentum has accelerated since mid-year, and investors seem to be responding to both improving fundamentals and renewed optimism around sector growth.

If you’re weighing what’s next in the space after CALB’s impressive move, this is a perfect moment to broaden your watchlist and discover See the full list for free.

With recent results smashing expectations and the stock surging, investors now face a critical question: Is CALB Group still undervalued after this rally, or has the market already priced in its future growth potential?

Price-to-Earnings of 52x: Is it justified?

CALB Group trades at a price-to-earnings ratio of 52x based on the latest closing price of HK$35.08, putting it at a significant premium to both its peers and the wider industry.

The price-to-earnings (P/E) ratio measures how much investors are willing to pay today for each dollar of current earnings. In high-growth sectors, a higher P/E might be justified if profit expansion is expected to continue outpacing competitors, but it can also signal market exuberance.

At 52x, CALB Group’s P/E stands well above the Asian Auto Components industry average of 22.5x and the peer group average of 17.8x. The company’s estimated fair price-to-earnings ratio, calculated at 21.1x, is also less than half of the current multiple. This highlights the scale of the market’s optimism or possible over-pricing. If the market reverts to the fair ratio, there could be a significant reset in valuation expectations.

Explore the SWS fair ratio for CALB Group

Result: Price-to-Earnings of 52x (OVERVALUED)

However, risks such as negative surprises in sector demand or a reversal in recent earnings momentum could quickly shift sentiment and impact CALB Group's lofty valuation.

Find out about the key risks to this CALB Group narrative.

Build Your Own CALB Group Narrative

Keep in mind, if you see things differently or prefer to dive into the data firsthand, you can craft your own perspective in just a few minutes by using Do it your way.

A great starting point for your CALB Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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