Legend Holdings Corporation Class H (3396) AI Stock Analysis

• Market Cap: HK$21.02B
• Dividend Yield: N/A
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 35.8
• Beta (1Y): 1.42
• Revenue Growth: 19.58%
• EPS Growth: N/A
• Country: HK
• Employees: 88,172
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.28
• Shares Outstanding: 1,271,854,000
• 10 Day Avg. Volume: 3,134,629
• 30 Day Avg. Volume: 2,867,511
• PEG Ratio: -0.70
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 0.69
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$10.00 ▲(12.11% Upside)

Legend Holdings Corporation Class H faces significant challenges with high leverage, low profitability, and weak cash flow generation. The technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

The moderate revenue growth indicates a positive trend in business expansion, suggesting potential for future market share gains and increased profitability.

Business Model Diversification

Diversification across multiple sectors reduces risk exposure and provides stability, allowing the company to leverage synergies and capitalize on emerging opportunities.

Operational Efficiency

Stable gross profit and operational margins indicate efficient management of resources, which can support sustainable profitability and competitive positioning.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and affecting long-term financial stability.

Cash Flow Challenges

Negative free cash flow growth suggests difficulties in cash generation, which can constrain operational flexibility and investment capacity over time.

Low Profitability

Extremely low net profit margin indicates challenges in converting revenue into profit, which may hinder long-term growth and shareholder value creation.

Legend Holdings Corporation Class H Business Overview & Revenue Model

Company Description

Legend Holdings Corporation, together with its subsidiaries, operates in the industrial operations, and industrial incubations and investments business in the People's Republic of China and internationally. The Industrial Operations segment provides devices and infrastructure, as well as creates solutions, services, and software; researches, develops, produces, and sells advanced material products; engages in agriculture and food related business; and offers integrated banking services, including corporate and institutional banking, retail banking, private banking, capital markets, etc. The Industrial Incubations and Investments segment invests in private equity and venture capital funds as a limited partner; holds interest in the general partners of various funds; and makes angel investments in technology start-ups, as well as minority investments in other entities. This segment also engages in aviation logistics, financial services, medical and health care, and office leasing services related businesses. The company also develops car management software, as well as provides car services information consultant services; develops and produces chemicals and energy materials; provides information and medical consultation services; and engages in real estate investment and asset management, enterprise management, and project investment businesses. In addition, it engages in agriculture products planting and trading, and food investment activities; trades, processes, and sells seafood and other animal protein-related products; and produces and sells salmon. Legend Holdings Corporation was incorporated in 1984 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Legend Holdings generates revenue through multiple channels, primarily by investing in and managing a diverse portfolio of businesses. The company's key revenue streams include returns from its investments in Lenovo, which contributes significantly to its earnings through technology sales and services. Additionally, Legend Holdings earns income from its financial services segment, which includes venture capital and private equity investments. The company also benefits from its agricultural investments, which generate revenue through food production and distribution. Significant partnerships with other firms and strategic investments enhance its financial performance, allowing it to leverage synergies across its various business units and capitalize on emerging market opportunities.

Legend Holdings Corporation Class H Financial Statement Overview

Summary

Legend Holdings Corporation Class H shows moderate revenue growth and operational efficiency but faces significant challenges in profitability and cash flow generation. High leverage and low returns on equity suggest financial risk, while negative free cash flow growth indicates cash management issues.

Income Statement

Legend Holdings Corporation Class H has shown a moderate revenue growth rate of 4.33% in the TTM, indicating a positive trend compared to the previous year. However, the net profit margin remains extremely low at 0.03%, suggesting challenges in converting revenue into profit. The gross profit margin is stable at 18.09%, and the EBIT and EBITDA margins are at 4.71% and 6.83% respectively, indicating decent operational efficiency but room for improvement in profitability.

Balance Sheet

The company has a high debt-to-equity ratio of 2.78, indicating significant leverage which could pose financial risk. Return on equity is low at 0.95%, reflecting limited returns for shareholders. The equity ratio stands at 8.16%, suggesting a low proportion of equity financing relative to total assets, which may impact financial stability.

Cash Flow

The free cash flow growth rate is negative at -153.30%, highlighting cash flow challenges. The operating cash flow to net income ratio is 0.06, indicating limited cash generation relative to net income. The free cash flow to net income ratio is 0.53, showing some ability to convert net income into free cash flow, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	569.35B	522.10B	442.84B	483.66B	489.87B	417.57B
Gross Profit	98.37B	94.47B	77.23B	85.45B	85.93B	70.34B
EBITDA	37.13B	35.66B	19.76B	25.84B	34.08B	18.72B
Net Income	546.46M	133.23M	-3.87B	1.17B	5.75B	4.19B
Balance Sheet
Total Assets	733.08B	695.97B	665.73B	681.07B	680.69B	651.73B
Cash, Cash Equivalents and Short-Term Investments	93.72B	87.59B	91.09B	112.05B	115.51B	93.59B
Total Debt	166.69B	155.17B	157.50B	161.76B	166.53B	326.98B
Total Liabilities	623.79B	598.32B	565.61B	578.92B	587.88B	565.06B
Stockholders Equity	59.81B	55.74B	58.33B	63.95B	62.83B	61.99B
Cash Flow
Free Cash Flow	-3.01B	14.30B	-5.82B	33.26B	12.31B	35.20B
Operating Cash Flow	11.17B	27.08B	8.96B	47.55B	22.17B	42.76B
Investing Cash Flow	-11.93B	-9.94B	-10.36B	-14.85B	-4.88B	-13.03B
Financing Cash Flow	-3.20B	-14.13B	-22.63B	-15.04B	-24.19B	-21.27B

Legend Holdings Corporation Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3396, the sentiment is Negative. The current price of 8.92 is below the 20-day moving average (MA) of 9.35, below the 50-day MA of 9.84, and below the 200-day MA of 9.44, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 33.59 is Neutral, neither overbought nor oversold. The STOCH value of 19.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3396.

Legend Holdings Corporation Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0992	70 Outperform	$119.83B	9.34	26.43%	4.04%	19.18%	36.38%
1263	68 Neutral	$1.98B	6.21	10.76%	7.84%	15.67%	35.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3336	55 Neutral	HK$1.46B	-2.71	-11.23%	―	-11.28%	-122.85%
3396	50 Neutral	HK$21.02B	35.79	0.95%	―	19.58%	―
2436	41 Neutral	HK$1.44B	-100.99	-1.60%	―	32.83%	90.24%
2498	38 Underperform	HK$17.15B	-34.63	-11.44%	―	―	―

Legend Holdings Corporation Class H Corporate Events

Legend Holdings Reports Lenovo’s Interim Financial Growth

Legend Holdings Corporation announced the unaudited consolidated interim results for its subsidiary, Lenovo Group Limited, for the six months ended September 30, 2025. Lenovo reported a revenue increase to US$39,282 million and a gross profit of US$5,921 million, reflecting growth compared to the previous year. Despite a slight decrease in gross profit margin, the operating profit and profit before taxation showed improvement. The announcement highlights Lenovo’s financial performance but advises caution as it represents only a part of Legend Holdings’ overall operations.

Legend Holdings Announces Leadership Change with New CEO Appointment

Legend Holdings Corporation announced the resignation of its Executive Director and CEO, Mr. LI Peng, effective November 17, 2025, due to personal career choices. Mr. LI has been instrumental in the company’s strategic growth and business transformation since 2020. The company has appointed Mr. YU Hao as the new CEO, who has been with the company since 2021 and has a strong background in technology and innovation, which is expected to further enhance the company’s market position and operational efficiency.

Joyvio Food Reports Significant Revenue Decline in Q3 2025

Joyvio Food Co., Ltd., a subsidiary of Legend Holdings Corporation, reported a significant decrease in revenue and net profit for the third quarter of 2025. The company experienced a 71.47% drop in revenue and a substantial net loss, highlighting financial challenges. The announcement advises caution for shareholders and investors, emphasizing that Joyvio Food’s financial results may not fully represent the overall financial health of Legend Holdings Corporation.

Levima Advanced Materials Reports Strong Q3 2025 Financial Performance

Levima Advanced Materials Corporation, a subsidiary of Legend Holdings Corporation, has released its unaudited financial results for the third quarter of 2025. The report indicates a slight increase in quarterly revenue by 0.21% but a notable 90.90% rise in net profit attributable to shareholders. Despite a decrease in net cash flow from operating activities by 37.11% over nine months, the company shows an overall positive financial trajectory with increased total assets and owner’s equity. These results may impact stakeholders’ perceptions of Levima’s market position and financial health.