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Legend Holdings Corporation Class H (HK:3396)
:3396
Hong Kong Market

Legend Holdings Corporation Class H (3396) AI Stock Analysis

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HK

Legend Holdings Corporation Class H

(3396)

Rating:65Neutral
Price Target:
HK$9.00
▲(5.63%Upside)
The company's strong financial performance, characterized by revenue growth and improved cash flow, is the primary driver of its score. Technical indicators suggest a stable stock price environment but do not signal strong upward momentum. High valuation metrics are a concern, indicating potential overvaluation. The lack of earnings call insights and corporate events leaves these areas unaddressed in the score.

Legend Holdings Corporation Class H (3396) vs. iShares MSCI Hong Kong ETF (EWH)

Legend Holdings Corporation Class H Business Overview & Revenue Model

Company DescriptionLegend Holdings Corporation Class H (3396) is a prominent investment holding company based in China. It operates through various business segments, including IT, financial services, agriculture and food, innovative consumption and services, and advanced manufacturing and professional services. The company is best known for its majority stake in Lenovo Group Limited, a leading global technology company specializing in personal computers, smartphones, and data center solutions.
How the Company Makes MoneyLegend Holdings Corporation generates revenue primarily through its diversified investment portfolio, with a significant portion coming from its IT segment via Lenovo Group Limited. Lenovo contributes to revenue through sales of personal computers, smartphones, and other technology solutions. Additionally, Legend Holdings earns income from its financial services segment, which includes banking, insurance, and investment management services. The agriculture and food segment contributes through its investments in agricultural production and food processing enterprises. The company also derives revenue from its other segments by investing in and managing businesses in innovative consumption and services as well as advanced manufacturing and professional services. Strategic partnerships, acquisitions, and a focus on expanding its investment footprint across various sectors further bolster the company's earnings.

Legend Holdings Corporation Class H Financial Statement Overview

Summary
Legend Holdings Corporation demonstrates strong revenue growth and improved operational efficiency. Despite a low net profit margin, the company shows solid cash flow management. The balance sheet presents moderate risk due to high leverage.
Income Statement
75
Positive
Legend Holdings Corporation has shown strong revenue growth with a significant increase from 2023 to 2024. Gross profit margin stands at 18.09% for 2024, indicating efficient cost management. However, the net profit margin is relatively low at 0.03% due to substantial expenses, although improved from a loss in 2023. EBIT and EBITDA margins have improved to 4.91% and 6.83% respectively, reflecting better operational efficiency.
Balance Sheet
65
Positive
The company's debt-to-equity ratio is moderately high, indicating a significant reliance on debt financing. With an equity ratio of 8.01%, there is moderate risk associated with leverage. Return on Equity (ROE) is low at 0.24%, suggesting limited profitability relative to shareholder equity. Overall, the balance sheet reflects stability but with potential risks due to high debt levels.
Cash Flow
80
Positive
Operating cash flow has improved significantly, and free cash flow turned positive in 2024, indicating strong cash generation ability. The operating cash flow to net income ratio is favorable, suggesting efficient conversion of income to cash. Free cash flow growth is robust, highlighting effective capital expenditure management. However, high leverage could impact future cash flows.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
522.10B442.84B483.66B489.87B417.57B
Gross Profit
94.47B77.23B85.45B85.93B70.34B
EBIT
25.66B14.65B21.28B22.11B13.09B
EBITDA
35.66B19.76B32.03B31.76B21.66B
Net Income Common Stockholders
133.23M-3.87B10.39B16.05B9.02B
Balance SheetCash, Cash Equivalents and Short-Term Investments
87.59B91.09B113.36B115.51B93.59B
Total Assets
695.97B665.73B681.07B680.69B651.73B
Total Debt
155.17B157.50B136.53B136.90B140.14B
Net Debt
94.21B96.63B54.07B52.88B70.42B
Total Liabilities
598.32B565.61B578.92B587.88B565.06B
Stockholders Equity
55.74B58.33B63.95B62.83B61.99B
Cash FlowFree Cash Flow
14.30B-5.82B33.26B12.31B35.20B
Operating Cash Flow
27.08B8.96B47.55B22.17B42.76B
Investing Cash Flow
-9.94B-10.36B-14.85B-4.88B-13.03B
Financing Cash Flow
-14.13B-22.63B-15.04B-24.19B-21.27B

Legend Holdings Corporation Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.52
Price Trends
50DMA
7.86
Positive
100DMA
8.21
Positive
200DMA
7.60
Positive
Market Momentum
MACD
0.11
Negative
RSI
63.34
Neutral
STOCH
92.14
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3396, the sentiment is Positive. The current price of 8.52 is above the 20-day moving average (MA) of 8.11, above the 50-day MA of 7.86, and above the 200-day MA of 7.60, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 63.34 is Neutral, neither overbought nor oversold. The STOCH value of 92.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3396.

Legend Holdings Corporation Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
£153.15B10.2710.86%3.44%-3.40%-7.51%
79
Outperform
$173.20B10.978.65%6.83%5.32%102.27%
78
Outperform
$738.73B14.4616.75%3.82%7.04%88.41%
76
Outperform
HK$217.78B12.4011.23%4.49%-2.77%4.04%
72
Outperform
HK$999.15B6.99
7.23%11.71%37.04%
65
Neutral
HK$20.08B137.280.24%3.01%15.54%
62
Neutral
$11.92B10.48-7.50%2.95%7.40%-8.18%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3396
Legend Holdings Corporation Class H
8.47
2.01
31.11%
GB:HSBA
HSBC Holdings
875.50
258.75
41.95%
HK:2318
Ping An Insurance Company of China
48.55
14.37
42.05%
HK:0066
MTR
27.85
4.11
17.31%
HK:1299
AIA Group
68.90
14.96
27.72%
HK:0011
Hang Seng Bank
114.20
13.91
13.87%

Legend Holdings Corporation Class H Corporate Events

Legend Holdings Reports Strong FY2024/25 Results for Lenovo Group
May 22, 2025

Legend Holdings Corporation announced the audited consolidated financial results of its subsidiary, Lenovo Group Limited, for the fiscal year ending March 31, 2025. Lenovo reported a significant increase in revenue and profit compared to the previous year, indicating strong performance in its operations. The results highlight Lenovo’s robust market positioning and potential positive implications for stakeholders, although shareholders are advised to exercise caution when dealing with the company’s securities.

Legend Holdings Updates on 2024 AGM and Strategic Initiatives
May 9, 2025

Legend Holdings Corporation has issued a supplemental announcement regarding its 2024 AGM Circular and Notice of AGM. The company is seeking shareholder approval for a voluntary Acquisition Mandate to conduct possible on-market acquisitions of Lenovo shares, ensuring compliance with applicable percentage ratios under the Listing Rules. Additionally, a special resolution for the 2024 Medium and Long-Term Incentive Plan, previously omitted from the Notice of AGM, has been included as special resolution no. 13. These measures are aimed at enhancing the company’s strategic positioning and incentivizing long-term growth.

Legend Holdings Announces Revised Notice for 2024 AGM
May 9, 2025

Legend Holdings Corporation has announced the revised notice for its 2024 Annual General Meeting, scheduled for June 26, 2025. Key resolutions include the approval of the 2024 Directors’ and Supervisors’ reports, audited financial statements, and a profit distribution plan with no dividend proposed. Additionally, the re-appointment of PricewaterhouseCoopers as the independent auditor and several proposed amendments to the company’s Articles of Association and procedural rules will be considered. The meeting will also address the grant of general mandates for share issuance and repurchase, as well as the 2024 Medium and Long-Term Incentive Plan.

Legend Holdings Releases 2024 Corporate Bonds Annual Report
Apr 29, 2025

Legend Holdings Corporation has published its 2024 annual report on corporate bonds on the Shanghai Stock Exchange website. The report includes audited financial information prepared under the China Accounting Standards for Business Enterprises, and discrepancies may exist compared to the financials prepared under IFRS standards. Shareholders and investors are advised to exercise caution when dealing with the company’s securities.

Legend Holdings Announces 2024 AGM with Key Resolutions
Apr 28, 2025

Legend Holdings Corporation has announced its 2024 Annual General Meeting (AGM) to be held on June 26, 2025, in Beijing, China. The meeting will cover various resolutions, including the approval of the directors’ and supervisors’ reports, audited financial statements, and a profit distribution plan with no dividend proposed for 2024. Additionally, the re-appointment of PricewaterhouseCoopers as the independent auditor and several proposed amendments to the company’s Articles of Association and procedural rules will be considered. The AGM will also address granting general mandates to the Board for issuing and repurchasing shares.

Levima Advanced Materials Reports Strong Q1 2025 Financial Performance
Apr 27, 2025

Levima Advanced Materials Corporation, a subsidiary of Legend Holdings, reported a 3.48% increase in revenue and a significant 38.83% rise in net profit for the first quarter of 2025 compared to the previous year. This financial performance highlights Levima’s robust growth, with a notable 1,140.67% increase in net profit after non-recurring items, indicating strong operational efficiency and potential positive implications for stakeholders.

Legend Holdings Proposes Amendments to Governance Framework
Apr 25, 2025

Legend Holdings Corporation has announced proposed amendments to its Articles of Association and Rules of Procedure to align with the new Company Law of the People’s Republic of China and updated Listing Rules of the Hong Kong Stock Exchange. These changes, which require shareholder approval at the 2024 Annual General Meeting, aim to ensure compliance with legal requirements and provide flexibility for holding treasury shares, reflecting the company’s commitment to maintaining robust governance and operational adaptability.

Legend Holdings Subsidiary Acquires Target Company for RMB1
Apr 25, 2025

Legend Holdings Corporation announced that its indirect wholly-owned subsidiary, Joyvio Premium Fresh, has entered into an Equity Transfer Agreement to acquire 100% equity interest in a Target Company from Joyvio Food, another subsidiary, for a nominal consideration of RMB1. This strategic move, finalized on April 24, 2025, reflects the assessed negative value of the Target Company and involves Joyvio Premium Fresh capitalizing the consideration from its own funds. The transaction is expected to impact the company’s financial structure and operational strategy, as it assumes any interim profit or loss generated by the Target Company until completion.

Joyvio Food Reports Significant Financial Decline in Q1 2025
Apr 24, 2025

Joyvio Food Co., Ltd., a subsidiary of Legend Holdings Corporation, reported a significant decline in its financial performance for the first quarter of 2025. The company experienced a 34.09% decrease in revenue compared to the same period last year, alongside a substantial increase in net loss attributable to shareholders, which more than doubled. This financial downturn may impact Legend Holdings’ overall financial health and its position in the food industry, as Joyvio Food is one of its key subsidiaries.

Legend Holdings Reports Strong 2024 Financial Performance Amid Global Challenges
Mar 28, 2025

Legend Holdings Corporation announced its audited annual results for 2024, showing a significant rebound in profitability with revenue reaching RMB 512.806 billion, an 18% increase from the previous year. The company’s net profit attributable to equity holders improved to RMB 133 million, driven by strategic resilience in its diversified-industries operation and investments in cutting-edge fields, despite a challenging global economic environment.

Levima Advanced Materials Reports Decline in 2024 Financial Performance
Mar 27, 2025

Levima Advanced Materials Corporation, a subsidiary of Legend Holdings Corporation, released its annual report for the year ending December 31, 2024, showing a decline in revenue and net profit compared to the previous year. Despite the decrease in financial performance, the company experienced an increase in total assets, indicating potential for future growth.

Legend Holdings Corporation Schedules Board Meeting for Annual Results
Mar 14, 2025

Legend Holdings Corporation has announced that its board of directors will meet on March 28, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend payment and address other business matters. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, which may impact its market position and investor relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.