Le Saunda Holdings (0738) AI Stock Analysis

• Market Cap: HK$204.71M
• Dividend Yield: N/A
• Average Volume (3M): 33.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: -30.45%
• EPS Growth: -97.13%
• Country: HK
• Employees: 805
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.05
• Shares Outstanding: 705,895,000
• 10 Day Avg. Volume: 30,400
• 30 Day Avg. Volume: 33,713
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -130.48
• 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$0.29 ▲(19.58% Upside)
• Action: Reiterated Date: 12/10/25
• Date: Action: Reiterated 12/10/25

Le Saunda Holdings' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue and profitability, and significant cash flow challenges. While the technical analysis shows some short-term bullish momentum, the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Strong balance sheet equity

A high equity ratio and low debt-to-equity provide a durable financial buffer against retail cyclicality. This capital structure reduces refinancing risk, supports continued operations during revenue weakness, and preserves flexibility to invest in restructuring or omnichannel initiatives over the medium term.

Demonstrated EBITDA profitability (2022)

The historical positive EBITDA margin indicates the core retail operations can be profitable under prior cost and sales conditions. That structural ability suggests management can recapture operating leverage through cost control, SKU rationalization, or channel mix improvements, supporting a multi-month recovery plan.

Established operational workforce

A workforce of ~805 implies existing operational scale across stores and supply chain functions. This human capital supports execution of merchandising, store-level turnarounds, and logistics improvements, enabling the company to implement structural efficiency and sales recovery programs without starting from scratch.

Negative Factors

Steep revenue decline

A ~30% revenue contraction indicates loss of market share or shrinking demand, which is a structural headwind for retail. Sustained top-line declines reduce scale, weaken supplier terms, and make fixed-cost recovery harder, prolonging any turnaround and pressuring long-term profitability and cash flow.

Persistent negative profitability

Consistent net losses and near-total EPS decline reflect structural margin deterioration. Persistent negative profitability erodes retained earnings, hampers reinvestment, and raises the bar for achieving sustainable ROE, making multi-quarter recoveries more challenging without material operational or strategic changes.

Weak cash generation and FCF

Negative free cash flow and low operating-cash-to-net-income conversion constrain the company's ability to fund inventory, remodel stores, or invest in e-commerce without new capital. Over several months this can force asset sales, store closures, or dilutive financing, impeding durable recovery plans.

Le Saunda Holdings Business Overview & Revenue Model

Company Description

Le Saunda Holdings Limited, an investment holding company, trades and sells footwear and accessories in Mainland China, Hong Kong, and Macau. It designs, develops, manufactures, and retails ladies' and men's footwear, handbags, and fashionable accessories under the le saunda, le saunda MEN, LINEA ROSA, PITTI DONNA, and CNE brand names. The company also sells its products through online. It operated 389 stores, including 353 self-owned stores and 36 franchised stores. In addition, it is involved in the property holding business; provision of management services; holding and licensing of trademarks and names; and wholesale and trading of shoes. The company was founded in 1977 and is headquartered in Quarry Bay, Hong Kong.

How the Company Makes Money

Le Saunda Holdings generates revenue primarily through the retail sales of its footwear products in Mainland China and Macau. The company's revenue model is centered around its network of directly operated retail stores as well as e-commerce platforms, allowing it to reach a broad consumer audience. Le Saunda's earnings are influenced by factors such as consumer fashion trends, economic conditions in its key markets, and its ability to effectively manage its supply chain and inventory. Additionally, the company leverages partnerships with online platforms to enhance its sales channels and expand its market presence.

Le Saunda Holdings Financial Statement Overview

Summary

Le Saunda Holdings is facing significant financial challenges, with declining revenue and profitability over the years. Despite a solid equity base and low leverage, the company's cash flow issues and consistent losses pose a risk to its financial stability. The focus should be on improving operational efficiencies and revenue growth to enhance financial performance.

Income Statement

Le Saunda Holdings has experienced a significant decline in revenue over recent years, with a notable decrease from 2020 to 2025. The gross profit margin has also fallen, reflecting challenges in maintaining profitability. Additionally, the net profit margin has been negative for several periods, indicating consistent losses. While the company showed a positive EBITDA margin in 2022, it has since turned negative, further highlighting financial struggles.

Balance Sheet

The company's balance sheet shows a strong equity position, with a high equity ratio indicating financial stability. However, the return on equity is negative due to ongoing losses. The debt-to-equity ratio is low, suggesting low leverage, which is a positive aspect. Overall, the balance sheet reflects a solid capital structure despite profitability challenges.

Cash Flow

Le Saunda Holdings has struggled with cash flow management, highlighted by negative free cash flow in recent years. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income to cash. The free cash flow to net income ratio also shows challenges in generating cash relative to earnings.

Breakdown	Feb 2024	Feb 2023	Feb 2022	Feb 2021	Feb 2020
Income Statement
Total Revenue	294.10M	401.43M	413.23M	569.03M	594.22M
Gross Profit	143.21M	250.80M	269.23M	357.85M	355.32M
EBITDA	-80.97M	7.03M	-14.77M	57.94M	24.37M
Net Income	-100.78M	-23.54M	-50.27M	2.98M	106.15M
Balance Sheet
Total Assets	574.25M	744.08M	802.45M	888.09M	1.16B
Cash, Cash Equivalents and Short-Term Investments	327.91M	397.77M	409.67M	479.88M	754.88M
Total Debt	7.75M	20.46M	37.30M	67.51M	26.91M
Total Liabilities	90.84M	125.97M	138.81M	182.75M	147.13M
Stockholders Equity	483.41M	613.78M	655.52M	696.01M	997.68M
Cash Flow
Free Cash Flow	-1.42M	32.77M	-29.24M	-25.65M	87.25M
Operating Cash Flow	2.91M	42.26M	-12.85M	-4.25M	94.05M
Investing Cash Flow	5.67M	36.30M	-49.83M	-21.06M	240.86M
Financing Cash Flow	-47.28M	-59.25M	-47.07M	-294.16M	-53.57M

Le Saunda Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 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:0738, the sentiment is Positive. The current price of 0.24 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.25, and below the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 82.77 is Negative, neither overbought nor oversold. The STOCH value of 90.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0738.

Le Saunda Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2683	73 Outperform	HK$527.13M	1.91	28.87%	5.45%	31.25%	147.52%
0210	70 Outperform	HK$751.87M	2.92	15.44%	4.60%	―	―
1023	62 Neutral	HK$490.98M	8.99	-10.55%	11.54%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1028	55 Neutral	HK$1.79B	-0.82	-13.15%	―	-11.17%	-621.38%
0738	48 Neutral	HK$204.71M	-1.27	-18.87%	―	-30.45%	-97.13%
8285	44 Neutral	HK$20.16M	119.63	―	―	-48.40%	66.36%