Legendary Group Limited (8195) AI Stock Analysis

• Market Cap: HK$632.96M
• Dividend Yield: N/A
• Average Volume (3M): 146.35K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.43
• 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: 211,237
• 30 Day Avg. Volume: 146,348
• 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)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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

Balance Sheet Strength

Legendary’s very low debt-to-equity (0.084) and healthy equity ratio indicate conservative capital structure and low financial risk. This durability gives the company flexibility to absorb shocks, fund operations or strategic investments without large interest burdens, supporting long-term stability.

Consistent Revenue Growth

The company’s recurring top-line expansion (noted as a 12.86% rise in the latest period and supported by 17.3% revenue growth metric) reflects sustained demand or market share gains. Durable revenue growth underpins scalability, investment capacity, and the ability to absorb margin pressure over time.

Strong Cash Conversion

A free cash flow to net income ratio of 0.89 shows the firm historically converts earnings into cash efficiently, supporting capex funding and operational needs. This structural cash conversion capability enhances resilience and strategic optionality despite short-term FCF swings.

Negative Factors

Free Cash Flow Decline

A dramatic -216.59% decline in free cash flow growth is a material structural risk: it can constrain reinvestment, elevate reliance on working capital or external financing, and limit strategic flexibility. If persistent, it undermines the balance sheet benefits and cash-backed growth plans.

Earnings Volatility (EPS)

Negative EPS growth of roughly -38.5% signals earnings deterioration despite revenue gains. Sustained EPS weakness suggests margin pressure, higher costs, or nonrecurring items reducing core profitability, which can impair reinvestment capacity and investor confidence in the business model over months.

Margin Compression / Operational Pressure

Reported declines in gross, net, EBIT and EBITDA margins indicate eroding operational efficiency or rising input costs. Persisting margin compression reduces cash flow generation per sales dollar and weakens returns on capital, threatening long-run profitability and competitiveness in apparel manufacturing.

Legendary Group Limited Business Overview & Revenue Model

Company Description

Legendary Group Limited, an investment holding company, designs, procures, manufactures, markets, and sells cashmere apparel, other apparel products, and accessories. The company operates through six segments: OEM Business, Retail Business, Money Lending, Financial Quotient and Investment Education Business, Property Investment Business, and Private Supplementary Education Business. The OEM Business segment engages in the design and development, raw materials sourcing and procurement, and manufacturing and product quality control management activities. The Retail Business segment is involved in retailing and wholesaling of garment products. The Money Lending segment provides financing to customers. The Financial Quotient and Investment Education Business segment provides financial quotient and investment education courses. The Property Investment Business segment invests in properties in the Asia Pacific region. The Private Supplementary Education Business segment provides private supplementary education courses for the students. The company was formerly known as L & A International Holdings Limited and changed its name to Legendary Group Limited in August 2021. Legendary Group Limited was founded in 2001 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

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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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	452.12M	343.16M	284.60M	237.25M	115.09M	96.47M
Gross Profit	228.34M	186.82M	160.58M	142.00M	76.53M	66.23M
EBITDA	85.61M	77.22M	81.50M	62.83M	41.88M	46.78M
Net Income	38.07M	37.08M	45.60M	33.39M	27.18M	40.57M
Balance Sheet
Total Assets	509.08M	513.90M	434.41M	379.60M	329.39M	353.18M
Cash, Cash Equivalents and Short-Term Investments	134.45M	144.35M	81.61M	60.53M	23.01M	74.54M
Total Debt	14.77M	36.06M	20.31M	29.53M	29.28M	78.44M
Total Liabilities	46.84M	82.81M	102.03M	127.18M	117.27M	179.16M
Stockholders Equity	458.22M	427.52M	331.34M	252.89M	213.34M	176.76M
Cash Flow
Free Cash Flow	54.36M	20.18M	9.81M	40.60M	40.08M	20.41M
Operating Cash Flow	66.60M	22.61M	11.12M	50.78M	51.65M	21.61M
Investing Cash Flow	-11.26M	-1.47M	-732.00K	-13.36M	3.83M	5.21M
Financing Cash Flow	-12.04M	39.81M	9.23M	-9.83M	-107.41M	43.99M

Legendary Group Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8195, the sentiment is Neutral. The current price of 1.28 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.35, and below the 200-day MA of 1.35, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$735.36M	7.56	24.23%	―	21.10%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8195	60 Neutral	HK$632.96M	10.59	11.46%	―	17.30%	-38.50%
2399	53 Neutral	HK$1.68B	-2.02	-94.46%	―	-50.16%	-252.77%
1906	46 Neutral	HK$882.67M	94.42	-5.91%	―	5.88%	16.82%
1520	45 Neutral	HK$799.54M	-2.68	-65.40%	―	90.88%	29.21%
8107	40 Underperform	HK$222.45M	-15.44	9999.00%	―	-82.69%	-200.61%