Le Saunda Holdings (0738) AI Stock Analysis

• Market Cap: HK$155.30M
• Dividend Yield: N/A
• Average Volume (3M): 33.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• 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: 41 Neutral
• Price Target: HK$0.21 ▼(-12.50% Downside)

Le Saunda Holdings is facing significant financial and technical challenges, with declining revenue, profitability, and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weaken the stock's appeal.

Positive Factors

Solid Equity Base

A strong equity base and low leverage indicate financial stability, providing a buffer against short-term financial challenges.

Low Leverage

Low leverage reduces financial risk and interest burden, allowing more flexibility in managing financial operations.

Retail Network

A strong retail network in key markets like China and Macau supports market presence and potential revenue growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market competitiveness and consumer demand, impacting long-term growth prospects.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and pricing pressures, challenging sustainable profitability.

Cash Flow Challenges

Negative cash flow impacts the ability to invest in growth opportunities and meet financial obligations, risking long-term viability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	294.10M	294.10M	401.43M	413.23M	569.03M	594.22M
Gross Profit	143.21M	143.21M	250.80M	269.23M	357.85M	355.32M
EBITDA	-93.57M	-80.97M	7.03M	-14.77M	57.94M	24.37M
Net Income	-100.78M	-100.78M	-23.54M	-50.27M	2.98M	106.15M
Balance Sheet
Total Assets	574.25M	574.25M	744.08M	802.45M	888.09M	1.16B
Cash, Cash Equivalents and Short-Term Investments	327.91M	327.91M	397.77M	409.67M	479.88M	754.88M
Total Debt	7.75M	7.75M	20.46M	37.30M	67.51M	26.91M
Total Liabilities	90.84M	90.84M	125.97M	138.81M	182.75M	147.13M
Stockholders Equity	483.41M	483.41M	613.78M	655.52M	696.01M	997.68M
Cash Flow
Free Cash Flow	-1.42M	-1.42M	32.77M	-29.24M	-25.65M	87.25M
Operating Cash Flow	2.91M	2.91M	42.26M	-12.85M	-4.25M	94.05M
Investing Cash Flow	5.67M	5.67M	36.30M	-49.83M	-21.06M	240.86M
Financing Cash Flow	-47.28M	-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: Negative
• MACD: Negative
• RSI: Neutral
• 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 above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.23, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.64 is Neutral, neither overbought nor oversold. The STOCH value of 80.26 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$355.50M	5.53	28.87%	5.23%	31.25%	147.52%
0210	70 Outperform	$890.37M	7.17	15.44%	4.55%	―	―
1023	62 Neutral	HK$500.61M	-2.81	-10.55%	11.76%	-1.38%	-275.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1028	55 Neutral	HK$1.52B	-9.66	-13.15%	―	-11.17%	-621.38%
8285	44 Neutral	HK$23.52M	-5.83	―	―	-48.40%	66.36%
0738	41 Neutral	HK$155.30M	―	-18.87%	―	-30.45%	-97.13%

Le Saunda Holdings Corporate Events

Le Saunda Holdings Reports Significant Revenue Decline in Interim Results

Le Saunda Holdings Limited announced its unaudited interim results for the six months ending August 31, 2025, revealing a significant decrease in revenue and gross profit compared to the previous year. The company reported a 36% decline in revenue and a 30% drop in gross profit, with a loss attributable to owners of RMB 31.4 million. Despite the challenging financial performance, the results were reviewed by the company’s audit committee, indicating a continued effort to maintain transparency and accountability. The announcement highlights the company’s ongoing struggles within the competitive fashion industry, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:0738) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Le Saunda Holdings stock, see the HK:0738 Stock Forecast page.

Le Saunda Holdings Schedules Board Meeting to Approve Interim Results

Le Saunda Holdings Limited has announced a board meeting scheduled for October 27, 2025, to approve the interim results for the six months ending August 31, 2025, and to consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

The most recent analyst rating on (HK:0738) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Le Saunda Holdings stock, see the HK:0738 Stock Forecast page.