Le Saunda Holdings (0738) AI Stock Analysis

• Market Cap: HK$232.95M
• Dividend Yield: N/A
• Average Volume (3M): 33.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• 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: 46 Neutral
• Price Target: HK$0.32 ▲(32.92% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is primarily held back by weak financial performance, marked by declining revenue, persistent losses, and negative free cash flow. Technicals are moderately supportive with price above major moving averages and a positive MACD, but overbought RSI/Stoch signals temper the outlook. Valuation is also constrained by loss-making results (negative P/E) and the absence of dividend yield data.

Positive Factors

Strong capital structure

A high equity ratio and low leverage give the company durable financial stability. This capital structure supports creditor confidence, reduces bankruptcy risk, and provides flexibility to fund restructuring, inventory or reinvestment without immediate reliance on costly external debt.

Prior positive EBITDA (2022)

The historical ability to generate positive EBITDA demonstrates that the underlying business model and cost base can be profitable under better demand or improved execution. That track record supports the plausibility of operational recovery if revenue stabilizes or cost actions are implemented.

Established operational scale

A workforce of over 800 implies an established retail and supply-chain footprint, trained personnel and operational processes. These durable assets support ramp-up of sales, omnichannel execution or margin improvements without the lead time smaller peers might face.

Negative Factors

Material revenue decline

A roughly 30% revenue decline signals structural demand erosion or loss of market share. Sustained top-line contraction impairs fixed-cost absorption, forces price or margin trade-offs, and makes it harder to return to scale profitability without clear new revenue drivers or market repositioning.

Persistent net losses

Recurring negative net margins and extreme EPS deterioration reduce retained earnings and impair return on equity. Persistent losses limit capacity to self-fund growth, increase the risk of shareholder dilution or restructuring, and weaken incentives for long-term investment by stakeholders.

Weak cash generation / negative FCF

Negative free cash flow and poor conversion of income to cash constrain working capital and capex funding. This structural cash weakness forces dependence on external financing or asset sales, limiting the company's ability to execute strategic initiatives or weather prolonged revenue weakness.

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

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Le Saunda Holdings Financial Statement Overview

Summary

Income statement weakness (revenue decline, compressed gross margin, recurring losses and negative EBITDA in recent periods) and poor cash generation (negative free cash flow, weak cash conversion) outweigh a comparatively solid balance sheet with high equity and low leverage.

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 0.29, below the 50-day MA of 0.26, and below the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 84.99 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$518.95M	1.91	28.87%	5.45%	31.25%	147.52%
0210	70 Outperform	HK$741.97M	2.92	16.16%	4.60%	―	―
1023	62 Neutral	HK$481.35M	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$1.67B	-0.82	-13.27%	―	-11.17%	-621.38%
0738	46 Neutral	HK$232.95M	-1.27	-20.20%	―	-30.45%	-97.13%
8285	44 Neutral	HK$20.72M	119.63	―	―	-48.40%	66.36%