Luen Thai Holdings Limited (0311) AI Stock Analysis

• Market Cap: HK$186.14M
• Dividend Yield: N/A
• Average Volume (3M): 79.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: -3.53%
• EPS Growth: -463.00%
• Country: HK
• Employees: 27,000
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.18
• Shares Outstanding: 1,034,112,700
• 10 Day Avg. Volume: 174,200
• 30 Day Avg. Volume: 79,433
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Luen Thai Holdings Limited's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. While technical analysis shows short-term positive momentum, the extremely high RSI suggests caution. The absence of earnings call data and corporate events limits additional insights.

Luen Thai Holdings Limited Business Overview & Revenue Model

Company Description

Luen Thai Holdings Limited (0311) is a prominent company engaged in the manufacturing and trading of apparel. The company operates in the garment industry, focusing on providing a wide range of clothing products including casual wear, fashion apparel, and lifestyle accessories. Luen Thai Holdings serves a global customer base, including some of the world's leading fashion brands and retailers.

How the Company Makes Money

Luen Thai Holdings Limited makes money primarily through the design, manufacturing, and sale of apparel and textile products. The company's revenue model is based on large-scale production and distribution agreements with international fashion brands and retailers. By leveraging its extensive manufacturing facilities and supply chain capabilities across Asia and other regions, Luen Thai can deliver cost-effective and high-quality products to its clients. Key revenue streams include contract manufacturing for major brands, direct sales of its own branded products, and strategic partnerships with fashion and lifestyle companies. Additionally, the company's earnings are supported by its ability to adapt to changing fashion trends and consumer preferences, ensuring a steady demand for its services.

Luen Thai Holdings Limited Financial Statement Overview

Summary

Luen Thai Holdings Limited faces substantial financial challenges, as evidenced by declining revenues, profitability, and negative cash flows. The balance sheet remains relatively stable, but liquidity constraints and operational inefficiencies pose risks. Immediate attention to cost management and revenue enhancement is crucial to stabilize financial performance and support long-term growth.

Income Statement

The income statement reveals declining revenue and profitability. The gross profit margin has decreased over time, with negative EBIT and net income in 2024 indicating operational challenges. The revenue growth rate is negative, signifying a downturn in sales compared to previous years. Such trends suggest financial strain and potential inefficiencies in cost management.

Balance Sheet

The balance sheet shows a stable equity position despite declining equity over the years. The debt-to-equity ratio remains manageable, though slightly elevated, reflecting moderate leverage. The equity ratio has slightly decreased, indicating a greater reliance on liabilities. Overall, the balance sheet maintains moderate stability but highlights the need for improved financial management.

Cash Flow

Cash flow analysis highlights significant challenges with negative operating cash flow and declining free cash flow, indicating liquidity issues. The free cash flow to net income ratio is negative, reinforcing cash flow pressure. These factors suggest potential sustainability issues if not addressed, reflecting a need for strategic intervention to improve liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	674.39M	696.63M	858.86M	795.66M	697.33M
Gross Profit	74.24M	95.27M	128.09M	123.93M	83.10M
EBITDA	7.01M	30.29M	43.73M	41.21M	994.00K
Net Income	-33.89M	-6.01M	9.91M	11.20M	-28.03M
Balance Sheet
Total Assets	445.98M	475.00M	523.36M	562.00M	538.62M
Cash, Cash Equivalents and Short-Term Investments	54.87M	100.46M	136.09M	140.16M	116.04M
Total Debt	166.22M	166.00M	176.69M	181.18M	186.78M
Total Liabilities	289.28M	283.31M	315.71M	358.12M	350.02M
Stockholders Equity	155.95M	190.67M	206.47M	201.46M	186.10M
Cash Flow
Free Cash Flow	-21.03M	-5.01M	8.81M	47.38M	-7.44M
Operating Cash Flow	-18.13M	-1.29M	20.26M	56.47M	17.98M
Investing Cash Flow	-84.00K	-908.00K	-10.23M	-7.49M	-26.55M
Financing Cash Flow	-3.29M	-15.65M	-12.91M	-15.72M	-10.10M

Luen Thai Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0311, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 92.05 is Negative, neither overbought nor oversold. The STOCH value of 84.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0311.

Luen Thai Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2232	81 Outperform	HK$17.20B	11.00	13.55%	4.19%	13.03%	22.23%
1982	72 Outperform	HK$2.01B	5.86	14.40%	13.14%	-0.61%	-5.36%
2368	72 Outperform	HK$2.30B	10.37	13.04%	7.65%	17.99%	-20.83%
1425	70 Neutral	HK$825.00M	4.84	21.91%	8.62%	-4.16%	-2.85%
2199	68 Neutral	HK$2.22B	12.05	5.63%	1.38%	11.73%	28.38%
Sector *	57 Neutral	HK$25.63B	4.89	-2.69%	5.48%	-0.60%	-50.24%
0311	49 Neutral	HK$186.14M	―	-19.38%	―	-3.53%	-463.00%

Luen Thai Holdings Limited Corporate Events

Luen Thai Holdings Announces Upcoming Board Meeting for Interim Results

Luen Thai Holdings Limited has announced a board meeting scheduled for August 27, 2025, to review and approve the interim results for the first half of 2025 and to consider the declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for stakeholders, impacting its market positioning and investor confidence.

Luen Thai Holdings Limited Announces Profit Alert with Improved Financial Performance

Luen Thai Holdings Limited has issued a profit alert indicating a significant improvement in its financial performance for the first half of 2025, expecting results to range from breakeven to a net profit of approximately US$0.5 million, compared to a net loss of US$9.7 million in the same period of 2024. This improvement is attributed to the absence of non-recurring expenses, enhanced gross profit margins, and reduced finance costs. However, the company remains cautious due to ongoing challenges such as the US reciprocal tariff policy, and plans to continue implementing cost control measures and strategic adjustments to navigate the uncertain market conditions.

Luen Thai Holdings Enhances Subcontracting Agreement with Shangtex HK

Luen Thai Holdings Limited has released a supplemental announcement regarding its Master Subcontracting Agreement with Shangtex HK Group. The announcement details the internal pricing policy and procedures the company follows to ensure service fees are competitive and fair. This includes comparing fees with those paid to independent third-party subcontractors and ensuring fees cover labor costs plus a margin. The company aims to better utilize its factory capacity through these agreements, potentially impacting its operational efficiency and market positioning.

Luen Thai Enters Strategic Subcontracting Agreement with Shangtex HK

Luen Thai Holdings Limited has entered into a Master Subcontracting Agreement with Shangtex HK, effective from July 1, 2025, to December 31, 2027. This agreement allows Luen Thai’s subsidiary, LTO, to provide non-exclusive subcontracting services for apparel manufacturing to Shangtex HK. The transaction is classified as a continuing connected transaction under Hong Kong’s Listing Rules, requiring reporting and annual review but exempt from independent shareholders’ approval. This agreement signifies a strategic collaboration with a major shareholder, potentially enhancing Luen Thai’s market positioning and operational capabilities in the apparel sector.

Luen Thai Holdings Limited Strengthens Governance with Nomination Committee Terms

Luen Thai Holdings Limited has outlined the terms of reference for its Nomination Committee, which was established in 2012. The committee is primarily composed of independent non-executive directors and is tasked with reviewing the board’s structure and diversity, identifying qualified board members, and making recommendations on appointments and succession planning. This move aims to enhance corporate governance and shareholder value by ensuring a diverse and effective board composition.

Luen Thai Holdings Secures Unanimous Approval for AGM Resolutions

Luen Thai Holdings Limited announced that all proposed resolutions at their 2025 Annual General Meeting were passed unanimously. The resolutions included re-electing directors, authorizing the board to fix directors’ remuneration, re-appointing auditors, and granting mandates to issue and purchase shares. This unanimous approval reflects strong shareholder support and may positively impact the company’s governance and operational strategies.