Is OSL Group (SEHK:863) Undervalued Following Half Year Sales Growth And Wider Losses?

What OSL Group’s latest half year earnings mean for investors

OSL Group (SEHK:863) reported half year 2026 earnings on 31 August, with sales of HK$55,812.64 million and a net loss of HK$860.55 million. Loss per share from continuing operations was HK$0.98.

OSL Group’s latest results arrived after a period in which the share price return fell 32.51% year to date, even though the 3-year total shareholder return is around 4x. In addition, the 90-day share price return of 9.77% suggests some momentum has recently rebuilt around the stock.

Scan beyond OSL Group’s widening losses and rebuilding momentum by comparing it with a curated 21 cryptocurrency and blockchain stocks that share exposure to digital assets and blockchain services.

For OSL Group, a sharp swing from a 3 year gain to a double digit fall this year, alongside wider losses, leaves a practical question. Is it better to lean into the recent rebound now, or wait for a lower entry as the valuation section below sets out?

Most Popular Narrative: 39.2% Undervalued

Against the latest close at HK$11.46, the most followed narrative for OSL Group points to a fair value of HK$18.86 and a sizeable valuation gap.

Vertical integration across BizPay, Banxa, StableHub and USDGO, covering issuance, conversion, on/off ramps and cross-border settlement, gives OSL multiple fee points along the same transaction flows, which can influence both revenue density and net margins.

Read the complete narrative. Read the complete narrative.

Want to understand why this narrative supports a much higher fair value for OSL Group? It leans heavily on rapid top line expansion, a sharp earnings swing, and a rich profit multiple that assumes investor confidence holds up. The key details sit in the forecast pathways that link today’s losses to those future margins.

Result: Fair Value of HK$18.86 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, OSL Group’s story can change quickly if stablecoin and AI agent adoption slows, or if higher spending on expansion keeps losses and margins under pressure.

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

Another View on OSL Group’s Valuation

The first narrative for OSL Group leans on analyst targets and long term earnings forecasts. The picture looks different when you look at today’s P/S ratio of 0.5x against a fair ratio of 0.2x and a Hong Kong Capital Markets average of 2.9x and peer average of 9.6x. This mix of a lower ratio versus peers but a higher ratio than the fair value estimate raises a simple question: Is the current price compensating you enough for the business risks you are taking on?

Before you rely on any one ratio, it helps to see how the detailed valuation stacks up against peers and the fair ratio over time, which you can do in our breakdown. See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With both risks and rewards on the table for OSL Group, now is a good time to move quickly and test the data against your own expectations. Start by weighing the 1 key reward and 2 important warning signs

Looking for more investment ideas beyond OSL Group?

If OSL Group is only one piece of your watchlist, now is the moment to widen the search and see what other opportunities could fit your goals.

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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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