Luen Thai Holdings Limited (0311) AI Stock Analysis

• Market Cap: HK$236.81M
• Dividend Yield: N/A
• Average Volume (3M): 37.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 0.34%
• EPS Growth: -47.98%
• Country: HK
• Employees: 27,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): <0.01
• Shares Outstanding: 1,034,112,700
• 10 Day Avg. Volume: 41,400
• 30 Day Avg. Volume: 37,666
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -1.08
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$0.21 ▼(-2.73% Downside)

The overall stock score of 40 reflects significant financial challenges, including declining revenues and negative cash flows. Technical indicators suggest potential oversold conditions, but valuation remains unattractive with a negative P/E ratio. Immediate strategic interventions are necessary to address financial and operational inefficiencies.

Luen Thai Holdings Limited Business Overview & Revenue Model

Company Description

Luen Thai Holdings Limited, an investment holding company, manufactures and trades in apparels and accessories in the People's Republic of China, the United States, Europe, Japan, Canada, and internationally. It sources, manufactures, and trades in textile and garment products; processes, trades in, imports, exports, and distributes garment products; and manufactures and trades in money pieces. In addition, it offers technical and management services; and manufactures and trades in handbags. The company was incorporated in 2004 and is headquartered in Kwun Tong, Hong Kong. Luen Thai Holdings Limited is a subsidiary of Shangtex (Hong Kong) Limited.

How the Company Makes Money

Luen Thai Holdings Limited generates revenue through multiple streams, primarily from the manufacturing and export of apparel products. The company operates on a business-to-business model, where it partners with international fashion brands to produce garments that meet their specifications. Key revenue streams include direct sales from garment manufacturing, service fees for supply chain management, and logistics services. Luen Thai also benefits from long-term contracts with major clients, ensuring a steady flow of income. Additionally, strategic partnerships with suppliers and logistics companies enhance operational efficiency and reduce costs, further contributing to its profitability.

Luen Thai Holdings Limited Financial Statement Overview

Summary

Luen Thai Holdings Limited faces substantial financial challenges, with 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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	665.69M	674.39M	696.63M	858.86M	795.66M	697.33M
Gross Profit	76.80M	74.24M	95.27M	125.33M	123.93M	83.10M
EBITDA	12.20M	7.01M	30.29M	43.73M	41.21M	994.00K
Net Income	-23.79M	-33.89M	-6.01M	9.91M	11.20M	-28.03M
Balance Sheet
Total Assets	480.92M	445.98M	475.00M	519.08M	562.00M	538.62M
Cash, Cash Equivalents and Short-Term Investments	99.88M	54.87M	100.46M	93.95M	140.16M	66.20M
Total Debt	194.66M	166.22M	166.00M	176.69M	181.18M	186.78M
Total Liabilities	324.22M	289.28M	283.31M	315.71M	358.12M	350.02M
Stockholders Equity	156.08M	155.95M	190.67M	206.47M	201.46M	186.10M
Cash Flow
Free Cash Flow	-14.02M	-21.03M	-5.01M	8.81M	47.38M	-7.44M
Operating Cash Flow	-11.87M	-18.13M	-1.29M	20.26M	56.47M	17.98M
Investing Cash Flow	166.00K	-84.00K	-908.00K	-10.23M	-7.49M	-26.55M
Financing Cash Flow	3.64M	-3.29M	-15.65M	-12.91M	-15.72M	-10.10M

Luen Thai Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0311, the sentiment is Neutral. The current price of 0.22 is above the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.22, and above the 200-day MA of 0.19, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 83.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	HK$19.80B	11.84	14.24%	5.87%	14.76%	23.04%
1425	75 Outperform	HK$800.00M	5.07	21.11%	8.89%	-8.00%	-11.37%
2199	67 Neutral	HK$2.83B	10.83	8.10%	4.00%	3.40%	151.24%
1982	64 Neutral	HK$2.39B	6.29	14.74%	12.14%	-0.95%	2.58%
2368	63 Neutral	HK$2.00B	8.40	12.21%	7.98%	13.52%	4.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0311	40 Underperform	HK$236.81M	-1.26	-14.53%	―	0.34%	-47.98%

Luen Thai Holdings Limited Corporate Events

Luen Thai Names CEO Raymond Tan as New Authorized Representative

Luen Thai Holdings Limited has announced a change in its authorized representative under the Listing Rules of the Hong Kong Stock Exchange, with Mr. Chiu Chi Cheung stepping down from the role effective 2 January 2026. The company has appointed its chief executive officer and executive director, Mr. Tan Cho Lung, Raymond, as the new authorized representative from the same date, consolidating regulatory liaison responsibilities at the top executive level and signaling continuity in governance and compliance oversight for stakeholders.

The most recent analyst rating on (HK:0311) stock is a Sell with a HK$0.21 price target. To see the full list of analyst forecasts on Luen Thai Holdings Limited stock, see the HK:0311 Stock Forecast page.

Luen Thai Holdings Revises Annual Caps Amid Rising Demand

Luen Thai Holdings Limited has announced a revision of its annual caps for the Master Subcontracting Agreement with Shangtex HK Group due to increased demand for its subcontracting services. The revised caps reflect a significant increase, allowing the company to meet the expected demand through 2027, highlighting the growing business relationship and operational scale between Luen Thai and Shangtex HK.

The most recent analyst rating on (HK:0311) stock is a Sell with a HK$0.21 price target. To see the full list of analyst forecasts on Luen Thai Holdings Limited stock, see the HK:0311 Stock Forecast page.

Luen Thai Renews Office Lease Agreement with LTID

Luen Thai Holdings Limited, through its wholly-owned subsidiary LTO, has renewed its Office Lease Master Agreement with LTID, a connected entity, for the period from January 1, 2026, to December 31, 2026. This agreement ensures the continued leasing of office premises in Hong Kong, with transactions subject to reporting and annual review requirements under the Listing Rules, but exempt from independent shareholders’ approval.

The most recent analyst rating on (HK:0311) stock is a Sell with a HK$0.21 price target. To see the full list of analyst forecasts on Luen Thai Holdings Limited stock, see the HK:0311 Stock Forecast page.

Luen Thai Renews Logistics Agreement with CTSI Group

Luen Thai Holdings Limited has announced the renewal of its Logistics Master Agreement with CTSI Group, a subsidiary of LTG, for a three-year term starting January 1, 2026. This agreement, which involves the provision of freight forwarding and logistics services, is classified as a continuing connected transaction under Hong Kong’s Listing Rules, requiring reporting and annual review but exempt from independent shareholders’ approval.

The most recent analyst rating on (HK:0311) stock is a Sell with a HK$0.21 price target. To see the full list of analyst forecasts on Luen Thai Holdings Limited stock, see the HK:0311 Stock Forecast page.

Luen Thai Holdings Secures Shareholder Approval for Key Resolutions

Luen Thai Holdings Limited announced that all ordinary resolutions proposed at their Extraordinary General Meeting (EGM) on October 24, 2025, were approved by independent shareholders. The resolutions pertained to the Fabric Purchase Master Agreement, including its execution, delivery, and proposed annual caps for the years 2025 to 2027. This approval signifies a strategic move for Luen Thai Holdings Limited, potentially impacting its operational agreements and future financial planning.