Legend Holdings Corporation Class H (3396) AI Stock Analysis

• Market Cap: HK$24.01B
• Dividend Yield: N/A
• Average Volume (3M): 2.87M
• Price to Earnings (P/E): 40.9
• Beta (1Y): 1.40
• Revenue Growth: 19.58%
• EPS Growth: N/A
• Country: HK
• Employees: 88,172
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.27
• 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: HK$14.00
• Price Target Upside: 36.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: HK$10.00 ▼(-2.72% Downside)

The overall stock score of 51 reflects moderate financial performance with significant challenges in profitability and cash flow. Technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The lack of dividend yield further impacts the stock's attractiveness.

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 demonstrates moderate revenue growth and operational efficiency, but faces 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	30.23B	28.27B	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	332.26B
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: Positive
• Last Price: 10.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 10.28 is below the 20-day moving average (MA) of 10.49, below the 50-day MA of 10.97, and above the 200-day MA of 9.17, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 73.38 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0992	―	$138.44B	10.68	26.62%	3.38%	21.51%	50.43%
1263	―	$2.34B	7.35	10.76%	6.35%	15.67%	35.62%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3336	―	€1.65B	―	-11.23%	―	-11.28%	-122.85%
3396	―	HK$24.01B	40.89	0.95%	―	19.58%	―
2436	―	HK$1.44B	―	-1.60%	―	32.83%	90.24%
2498	―	HK$17.00B	-35.45	-10.42%	―	―	―

Legend Holdings Corporation Class H Corporate Events

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.

The most recent analyst rating on (HK:3396) stock is a Hold with a HK$11.50 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 Releases 2025 Half-Year Corporate Bond Report

Legend Holdings Corporation has published its 2025 half-year report on corporate bonds, in compliance with Chinese regulations. The report, containing unaudited financial information for the first half of 2025, is available on the Shanghai Stock Exchange website. The company advises caution due to potential discrepancies between financial data prepared under Chinese and IFRS accounting standards, which could impact stakeholder decisions.

The most recent analyst rating on (HK:3396) stock is a Hold with a HK$10.50 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 Strong Interim Results for 2025

Legend Holdings Corporation announced its interim results for the first half of 2025, reporting a significant increase in revenue and net profit compared to the same period in 2024. The company’s revenue rose by 21% to RMB 281,589 million, driven primarily by a 24% increase in Lenovo’s performance. Net profit attributable to equity holders also saw a substantial rise of 144% to RMB 699 million, highlighting the company’s strong operational performance and effective management strategies. This positive financial outcome underscores Legend Holdings’ robust positioning in its diversified industries and investments, potentially enhancing stakeholder confidence and market competitiveness.

The most recent analyst rating on (HK:3396) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on Legend Holdings Corporation Class H stock, see the HK:3396 Stock Forecast page.

Joyvio Food Reports Significant Financial Decline in H1 2025

Joyvio Food Co., Ltd., a subsidiary of Legend Holdings Corporation, reported a significant decline in its financial performance for the first half of 2025. The company experienced a 33.96% decrease in revenue compared to the same period in 2024, alongside a net loss attributable to shareholders of RMB 419.23 million, reflecting a 6.51% increase in losses. The financial results indicate challenges in Joyvio Food’s operations, with a notable drop in total assets and a substantial negative net cash flow from operating activities. These results may impact Legend Holdings’ overall financial health and its market positioning, urging caution among shareholders and investors.

The most recent analyst rating on (HK:3396) stock is a Hold with a HK$10.50 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 Board Meeting to Review Interim Results

Legend Holdings Corporation has announced that its board of directors will meet on August 29, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perceptions and the company’s position in the market.

Levima Advanced Materials Reports Increased Profitability Amid Revenue Decline

Levima Advanced Materials Corporation, a subsidiary of Legend Holdings Corporation, has released its 2025 half-year report, showing a 12.13% decrease in revenue compared to the previous year. Despite the drop in revenue, the company reported a 14.15% increase in net profit attributable to shareholders and a 43.21% rise in net profit after non-recurring items, highlighting improved profitability. The report underscores the subsidiary’s financial performance and its impact on Legend Holdings’ overall operations, although it is noted that Levima’s financials are prepared under different accounting standards than the parent company.

Legend Holdings Reports Strong Q1 FY2025/26 Results for Lenovo Group

Legend Holdings Corporation announced the unaudited consolidated financial results of its subsidiary, Lenovo Group Limited, for the first quarter of FY2025/26. Lenovo Group reported a revenue increase to $18.83 billion and a profit before taxation of $622 million, showcasing significant growth compared to the previous year. Despite a slight decline in gross profit margin, the overall financial performance indicates a positive trajectory for Lenovo Group, which could enhance Legend Holdings’ market positioning and stakeholder confidence.