Legendary Group Limited (8195) AI Stock Analysis

• Market Cap: HK$536.64M
• Dividend Yield: N/A
• Average Volume (3M): 113.64K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.34
• Revenue Growth: 17.30%
• EPS Growth: -38.50%
• Country: HK
• Employees: 116
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.03
• Shares Outstanding: 458,664,700
• 10 Day Avg. Volume: 73,000
• 30 Day Avg. Volume: 113,645
• PEG Ratio: -0.79
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 33.50
• 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: 60 Neutral
• Price Target: HK$1.50 ▲(17.19% Upside)

The overall stock score reflects a strong financial foundation with consistent revenue growth and low leverage. However, technical indicators suggest bearish momentum, and the decline in free cash flow growth is a concern. The valuation is reasonable, but the lack of dividend yield may deter some investors.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective business strategies, which are crucial for long-term success and competitiveness.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reducing risk and providing flexibility for future investments and growth opportunities.

Cash Conversion

Efficient conversion of earnings into cash supports operational liquidity and enables the company to fund growth initiatives without relying heavily on external financing.

Negative Factors

Free Cash Flow Decline

A decline in free cash flow growth can strain financial resources, limiting the company's ability to invest in new projects and potentially affecting long-term growth prospects.

Margin Pressure

Decreasing margins suggest challenges in maintaining cost efficiency, which could impact profitability if not addressed, affecting the company's competitive edge over time.

Earnings Volatility

Negative EPS growth indicates earnings volatility, which can undermine investor confidence and affect the company's ability to attract and retain investment over the long term.

Legendary Group Limited Business Overview & Revenue Model

Company Description

Legendary Group Limited (8195) is a diversified investment holding company based in Hong Kong, primarily engaged in sectors such as entertainment, media, and real estate. The company focuses on creating, producing, and distributing entertainment content, alongside managing significant real estate investments. Its core products and services include film and television production, digital content distribution, and property investment and management, catering to a broad audience across various platforms.

How the Company Makes Money

Legendary Group Limited generates revenue through multiple key streams. The primary source of income is from the production and distribution of films and television content, where the company profits from box office sales, licensing deals, and streaming platforms. Additionally, the company earns revenue through partnerships with other media entities for co-productions and distribution rights. Another significant revenue stream comes from its real estate investments, where the company benefits from rental income and property appreciation. Strategic alliances with global entertainment firms enhance its market reach and contribute to its financial performance.

Legendary Group Limited Financial Statement Overview

Summary

Legendary Group Limited exhibits strong revenue growth and stable profitability, supported by a robust balance sheet with low leverage. However, the decline in free cash flow growth is a concern, indicating potential cash flow management issues.

Income Statement

Legendary Group Limited has shown consistent revenue growth over the years, with a notable increase of 12.86% in the latest period. The company maintains healthy gross and net profit margins, although there has been a slight decline in these margins compared to previous years. The EBIT and EBITDA margins have also decreased, indicating some pressure on operational efficiency. Overall, the income statement reflects a strong growth trajectory with stable profitability.

Balance Sheet

The balance sheet of Legendary Group Limited is robust, characterized by a low debt-to-equity ratio of 0.084, indicating conservative leverage. The return on equity is moderate at 8.67%, suggesting efficient use of equity to generate profits. The equity ratio stands at a healthy level, reflecting a strong capital structure. Overall, the balance sheet demonstrates financial stability and low risk.

Cash Flow

The cash flow statement reveals challenges in free cash flow growth, with a significant decline of -216.59% in the latest period. However, the operating cash flow to net income ratio is reasonable at 0.31, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is strong at 0.89, showing efficient conversion of earnings into cash. Despite the recent decline in free cash flow, the company maintains a solid cash conversion capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	438.62M	343.16M	284.60M	237.25M	115.09M	96.47M
Gross Profit	233.75M	186.82M	160.58M	142.00M	76.53M	66.23M
EBITDA	91.02M	77.22M	81.50M	62.83M	41.88M	46.78M
Net Income	44.90M	37.08M	45.60M	33.39M	27.18M	40.57M
Balance Sheet
Total Assets	513.90M	513.90M	434.41M	379.60M	329.39M	353.18M
Cash, Cash Equivalents and Short-Term Investments	144.35M	144.35M	81.61M	60.53M	23.01M	74.54M
Total Debt	36.06M	36.06M	20.31M	29.53M	29.28M	78.44M
Total Liabilities	82.81M	82.81M	102.03M	127.18M	117.27M	179.16M
Stockholders Equity	427.52M	427.52M	331.34M	252.89M	213.34M	176.76M
Cash Flow
Free Cash Flow	20.18M	20.18M	9.81M	40.60M	40.08M	20.41M
Operating Cash Flow	10.94M	22.61M	11.12M	50.78M	51.65M	21.61M
Investing Cash Flow	-2.95M	-1.47M	-732.00K	-13.36M	3.83M	5.21M
Financing Cash Flow	59.72M	39.81M	9.23M	-9.83M	-107.41M	43.99M

Legendary Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8195, the sentiment is Negative. The current price of 1.28 is above the 20-day moving average (MA) of 1.22, above the 50-day MA of 1.27, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 28.82 is Positive, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8195.

Legendary Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2011	65 Neutral	HK$890.47M	18.61	25.73%	―	21.10%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8195	60 Neutral	HK$536.64M	17.65	7.13%	―	17.30%	-38.50%
2399	54 Neutral	HK$1.37B	-3.37	-75.78%	―	-50.16%	-252.77%
1520	46 Neutral	HK$1.09B	―	-60.17%	―	90.88%	29.21%
1906	46 Neutral	HK$809.12M	-30.90	-6.24%	―	5.88%	16.82%
8107	43 Neutral	HK$432.54M	-6.35	-253.51%	―	-82.69%	-200.61%