Legend Upstar Holdings Limited (0459) AI Stock Analysis

• Market Cap: HK$220.24M
• Dividend Yield: N/A
• Average Volume (3M): 251.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -11.96%
• EPS Growth: -695.83%
• Country: HK
• Employees: 405
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.02
• Shares Outstanding: 1,805,282,600
• 10 Day Avg. Volume: 267,820
• 30 Day Avg. Volume: 251,462
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 1.53
• 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: 48 Neutral
• Price Target: HK$0.12 ▲(0.00% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, with declining revenues and negative profitability. While technical analysis shows some positive momentum, the negative valuation metrics and lack of earnings call data or corporate events further weigh down the score.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams, including software sales and telecom services, provide resilience against sector-specific downturns and support long-term growth.

Strategic Partnerships

Strategic partnerships can enhance service offerings and market reach, providing a competitive edge and potential for capturing new market opportunities.

Stable Balance Sheet

A stable balance sheet with a positive equity ratio indicates financial resilience, providing a foundation for future investments and growth initiatives.

Negative Factors

Declining Revenue

Declining revenue reflects challenges in market demand or competitiveness, potentially impacting the company's ability to invest in growth and innovation.

Negative Profitability

Negative profitability and declining EBIT margin suggest operational inefficiencies, which may hinder the company's long-term financial health and growth potential.

Inconsistent Cash Flows

Inconsistent cash flows indicate challenges in sustaining operations and meeting financial commitments, potentially limiting strategic flexibility and growth investments.

Legend Upstar Holdings Limited Business Overview & Revenue Model

Company Description

Legend Upstar Holdings Limited, an investment holding company, provides property agency services for commercial and industrial properties, and shops in Hong Kong. It is also involved in the property investment, securities investment, surveying, and money lending activities; credit business; operation of serviced apartments; and provision of treasury and management services. The company was formerly known as Midland IC&I Limited and changed its name to Legend Upstar Holdings Limited in July 2022. Legend Upstar Holdings Limited was incorporated in 2001 is headquartered in Central, Hong Kong.

How the Company Makes Money

Legend Upstar Holdings Limited generates revenue through multiple streams, primarily by offering technology solutions and telecommunications services to businesses and consumers. Key revenue streams include sales of proprietary software products, fees for system integration services, and recurring revenue from telecommunications service subscriptions. The company may also benefit from strategic partnerships with other technology firms, which can enhance its service offerings and expand its market reach. Additionally, the company may explore opportunities in emerging markets and sectors, leveraging its technology to capture new revenue opportunities.

Legend Upstar Holdings Limited Financial Statement Overview

Summary

Legend Upstar Holdings Limited faces significant financial headwinds, characterized by declining revenues, negative profitability, and inconsistent cash flows. While the balance sheet retains some stability, the company must address its operational inefficiencies and cash generation issues to improve its financial standing and support future growth.

Income Statement

Legend Upstar Holdings Limited has experienced declining revenue over the past few years, with a negative revenue growth rate from 2021 to 2024. The net profit margin is negative, indicating consistent losses, and the EBIT margin has also declined, showing a decrease in operational efficiency. While the EBITDA margin is positive, the overall income statement reflects financial challenges and a need for turnaround strategies.

Balance Sheet

The company's balance sheet shows a relatively stable equity position with a positive equity ratio. However, the debt-to-equity ratio has increased slightly, suggesting a growing reliance on debt financing. Return on equity is negative due to ongoing losses. Overall, the balance sheet is moderately stable but indicates potential risk from increased leverage.

Cash Flow

Operating cash flow and free cash flow have been inconsistent, with recent periods showing zero or negative cash generation. The cash flow to net income ratios are not favorable, reflecting cash management challenges. These factors highlight the company's struggle to generate sufficient cash to cover its operational and financial commitments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	395.86M	356.86M	397.07M	450.08M	541.32M	342.68M
Gross Profit	395.86M	356.86M	397.44M	450.08M	541.32M	342.68M
EBITDA	49.47M	51.26M	59.01M	40.66M	97.07M	36.89M
Net Income	-68.89M	-26.04M	-733.00K	-3.69M	49.84M	-7.28M
Balance Sheet
Total Assets	1.54B	1.64B	1.69B	1.82B	1.79B	1.61B
Cash, Cash Equivalents and Short-Term Investments	209.95M	286.00M	219.18M	212.78M	288.16M	495.55M
Total Debt	247.54M	384.10M	409.08M	489.32M	453.92M	355.71M
Total Liabilities	461.72M	524.46M	551.97M	679.40M	655.41M	519.81M
Stockholders Equity	1.07B	1.11B	1.13B	1.13B	1.13B	1.08B
Cash Flow
Free Cash Flow	170.19M	91.82M	57.24M	-8.28M	-132.88M	-16.45M
Operating Cash Flow	179.46M	96.01M	61.19M	163.00K	-101.69M	-15.57M
Investing Cash Flow	-12.19M	3.18M	35.07M	-70.07M	-155.16M	-15.27M
Financing Cash Flow	-162.17M	-32.37M	-89.86M	-3.14M	64.36M	-34.60M

Legend Upstar Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 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:0459, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.08, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 86.17 is Negative, neither overbought nor oversold. The STOCH value of 88.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0459.

Legend Upstar Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
3699	64 Neutral	HK$167.73M	6.47	2.41%	6.08%	-2.44%	37.79%
0616	54 Neutral	HK$565.91M	-2.35	-5.14%	―	79.76%	88.69%
1417	49 Neutral	HK$87.29M	-1.50	-30.16%	―	12.37%	25.67%
0459	48 Neutral	HK$220.24M	-3.19	-6.21%	―	-11.96%	-695.83%
0183	45 Neutral	HK$96.38M	-1.52	-4.91%	―	30.19%	72.49%
0287	43 Neutral	HK$164.00M	-1.85	-8.59%	3.41%	-4.92%	-199.32%

Legend Upstar Holdings Limited Corporate Events

Legend Upstar Holdings Announces HK$22 Million Mortgage Loan Agreement

Legend Upstar Holdings Limited, through its indirect wholly-owned subsidiary Legend Credit, has entered into a mortgage loan agreement to lend HK$22,000,000 to a borrower at an 11% interest rate for a 12-month term. This transaction is considered discloseable under Hong Kong’s Listing Rules due to its size, requiring public announcement and reporting. The loan is secured by a first legal charge over a residential property and car parking space in Pok Fu Lam, Hong Kong, valued at approximately HK$36,380,000.

Legend Upstar Holdings Limited Announces HK$8.5 Million Mortgage Loan Agreement

Legend Upstar Holdings Limited, through its subsidiary Legend Credit, has entered into a mortgage loan agreement to lend HK$8,500,000 at a 10% annual interest rate for a 12-month term. This transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, indicating its significance in the company’s financial operations and its potential impact on stakeholders.

Legend Upstar Holdings Limited Announces HK$11 Million Mortgage Loan Agreement

Legend Upstar Holdings Limited, through its indirect wholly-owned subsidiary Legend Credit, has entered into a mortgage loan agreement to lend HK$11,000,000 at an interest rate of 10% per annum for a 12-month term. This transaction is classified as a discloseable transaction under the Listing Rules due to the applicable percentage ratios exceeding 5%, necessitating reporting and announcement requirements. The loan is secured by a first legal charge over a residential property in Tsuen Wan, Hong Kong, valued at approximately HK$20,000,000.