Legend Holdings Corporation Class H (3396) AI Stock Analysis

• Market Cap: HK$20.43B
• Dividend Yield: N/A
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 34.8
• Beta (1Y): 1.45
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$8.50 ▼(-5.13% Downside)

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

Diversified investment-holding business model

Legend’s holding-company model spreads economic exposure across multiple sectors and operating subsidiaries, reducing single-industry risk. Durable diversification provides recurring cash flows from portfolio businesses and strategic capital allocation optionality to redeploy resources across cycles.

Stable gross margin with modest revenue growth

Consistent top-line expansion alongside a stable ~18% gross margin indicates core businesses can maintain pricing or cost structure. This stability supports longer-term operating leverage and the ability to invest in growth or restructuring without immediate margin erosion.

Operational efficiency reflected in positive EBIT/EBITDA margins

Positive EBIT and EBITDA margins show the group’s operations generate recurring operating profit despite low net margins. Sustainable operating profitability provides a foundation to improve net returns if financing costs and cash conversion issues are addressed over the medium term.

Negative Factors

High leverage and thin equity base

A debt-to-equity ratio near 2.8 and an equity ratio ~8% imply heavy reliance on debt funding, limiting balance-sheet flexibility. Structurally high leverage raises refinancing and interest-rate vulnerability and constrains strategic investments or buffer capacity during downturns.

Extremely low net profitability

A near-zero net margin means the group retains almost no profit after expenses and financing. Over time this erodes retained earnings, limits self-funded growth or deleveraging, and leaves little room to absorb shocks or fund portfolio investment without external capital.

Weak cash generation and negative FCF growth

Very negative FCF growth and only ~0.06x operating cash to net income indicate poor cash conversion. Structurally weak cash generation impairs the company’s ability to service debt, invest organically, or return capital, forcing reliance on external financing or asset disposals.

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: 8.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 8.96 is below the 20-day moving average (MA) of 8.99, below the 50-day MA of 9.11, and below the 200-day MA of 9.47, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 29.29 is Neutral, 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	68 Neutral	HK$110.15B	8.59	26.43%	4.17%	19.18%	36.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3336	55 Neutral	HK$1.61B	-2.97	-11.23%	―	-11.28%	-122.85%
3396	50 Neutral	HK$20.43B	34.79	0.95%	―	19.58%	―
2436	48 Neutral	HK$4.95B	-424.24	-1.60%	―	32.83%	90.24%
2498	48 Neutral	HK$16.29B	-32.89	-11.44%	―	―	―

Legend Holdings Corporation Class H Corporate Events

Legend Holdings Increases Stake in Lenovo with Major Share Acquisition

Legend Holdings Corporation, through its wholly-owned subsidiary Honorific, has acquired 115,174,000 Lenovo shares, representing approximately 0.9285% of Lenovo’s issued share capital, for around HKD1.125 billion. This acquisition, conducted on the open market, increases Legend Holdings’ total stake in Lenovo to approximately 32.34%. The transaction is classified as a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement but not shareholder approval. This move strengthens Legend Holdings’ position in the technology sector through its increased investment in Lenovo, a company known for its smart devices and IT infrastructure solutions.

The most recent analyst rating on (HK:3396) stock is a Hold with a HK$10.00 price target. To see the full list of analyst forecasts on Legend Holdings Corporation Class H stock, see the HK:3396 Stock Forecast page.

Legend Holdings Renews Key Agreement with Levima Advanced Materials

Legend Holdings Corporation, through its subsidiary Guozhuang Mining, is involved in providing coal and labor outsourcing services, particularly focusing on agreements with Levima Advanced Materials. The company operates within the mining and materials sector, supplying essential resources and services that support industrial operations. The recent announcement details the renewal of a significant agreement between Guozhuang Mining and Levima Advanced Materials for the year 2026, with a maximum consideration of RMB276 million. This agreement underscores the ongoing business relationship and operational continuity between the two entities. The transaction is categorized as a continuing connected transaction under Hong Kong’s Listing Rules, subject to annual review and reporting requirements, highlighting its importance within the company’s strategic operations.

The most recent analyst rating on (HK:3396) stock is a Hold with a HK$10.00 price target. To see the full list of analyst forecasts on Legend Holdings Corporation Class H stock, see the HK:3396 Stock Forecast page.

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.

The most recent analyst rating on (HK:3396) stock is a Hold with a HK$10.00 price target. To see the full list of analyst forecasts on Legend Holdings Corporation Class H stock, see the HK:3396 Stock Forecast page.

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.

The most recent analyst rating on (HK:3396) stock is a Hold with a HK$10.00 price target. To see the full list of analyst forecasts on Legend Holdings Corporation Class H stock, see the HK:3396 Stock Forecast page.