Pacific Legend Group Limited (8547) AI Stock Analysis

• Market Cap: HK$45.52M
• Dividend Yield: N/A
• Average Volume (3M): 8.45M
• Price to Earnings (P/E): 128.3
• Beta (1Y): -0.59
• Revenue Growth: -21.85%
• EPS Growth: -98.18%
• Country: HK
• Employees: 92
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.03
• Shares Outstanding: 591,159,500
• 10 Day Avg. Volume: 11,968,200
• 30 Day Avg. Volume: 8,445,200
• PEG Ratio: -0.03
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.09
• P/FCF Ratio: -3.15
• 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: 42 Neutral
• Price Target: HK$0.08 ▼(-1.25% Downside)

The score is held down primarily by weak cash flow (negative operating cash flow and poor free cash flow conversion) and a clearly bearish price trend (below all key moving averages with negative MACD). While the company shows improving profitability and strong revenue growth, the extremely high P/E and thin margins limit the overall score.

Positive Factors

Revenue Growth Recovery

Sustained 30.6% revenue growth demonstrates expanding demand and successful market traction. Over 2-6 months this supports scale benefits, potential higher operating leverage, and provides management room to reinvest in products, distribution, or margin-improvement initiatives.

High Gross Margin

A ~42% gross margin indicates durable underlying product economics and potential pricing power or favorable input mix. This structural margin buffer helps absorb cost inflation, supports reinvestment in sales/innovation, and underpins long-term profitability if SG&A is controlled.

Improved ROE and Lower Leverage

ROE improvement to 15.8% signals more effective capital use by management. An improved debt-to-equity around 0.31 reduces financial strain and increases strategic flexibility, supporting durable capacity for investment or targeted M&A without overly risking solvency.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow and poor free-cash-flow conversion undermine the company’s ability to fund operations and capital needs from internal sources. Over months this raises refinancing and liquidity risk and limits capacity to invest or shore up margins during downturns.

Thin Net and Operating Margins

Very thin net and operating margins leave limited room to absorb rising costs, scale SG&A, or fund strategic initiatives. Structurally low margins amplify downside risk from demand softness and make sustainable earnings growth dependent on meaningful operational improvements.

Declining Equity Ratio / Higher Liabilities

A falling equity ratio indicates rising liabilities versus assets, reducing the balance-sheet buffer against shocks. Persisting over months, this heightens refinancing and covenant risk, constrains capital allocation flexibility, and may increase cost of capital for growth initiatives.

Pacific Legend Group Limited Business Overview & Revenue Model

Company Description

Pacific Legend Group Limited, an investment holding company, sells and rents home furniture and accessories in Hong Kong, the United Arab Emirates, and the People's Republic of China. It operates through three segments: Sale of Home Furniture and Accessories, Rental of Home Furniture and Accessories, and Project and Hospitality Services. The company sells home furniture and accessories through retail, corporate sale, online shop, wholesale, and franchise channels. It also provides project and hospitality services, which include designing, styling, decorating, and furnishing commercial or residential properties, such as hotels, serviced apartments, and show flats; and design consultancy services for fitting out interiors with furnishings. Pacific Legend Group Limited was founded in 1979 and is headquartered in Hong Kong, Hong Kong. Pacific Legend Group Limited is a subsidiary of Double Lions Limited.

How the Company Makes Money

Pacific Legend Group Limited generates revenue through multiple streams, primarily by selling its consumer products to retailers and directly to consumers. The company's revenue model is anchored in wholesale distribution to major retailers, which allows it to leverage economies of scale and reach a wide audience. Additionally, the company engages in e-commerce sales through its online platform, providing a direct sales channel that complements its wholesale operations. Key revenue streams include sales from home improvement products, lifestyle accessories, and seasonal merchandise. Strategic partnerships with key retailers and distributors further enhance the company's market presence and contribute significantly to its earnings, while ongoing product innovation helps maintain consumer interest and drive sales growth.

Pacific Legend Group Limited Financial Statement Overview

Summary

Income statement shows recovery (net income turned positive and revenue grew 30.6%), but profitability is still thin (2.9% net margin; ~3.9% EBIT/EBITDA margins). Balance sheet leverage improved (debt-to-equity 0.31) and ROE rose (15.8%), yet equity ratio fell (44.8%). Cash flow is the key drag with negative operating cash flow and weak free-cash-flow conversion.

Income Statement

Pacific Legend Group Limited has shown a significant recovery in its net income from a negative value in 2023 to a positive in 2024, indicating improved profitability. The gross profit margin remains solid at 41.9% in 2024, but the net profit margin at 2.9% suggests room for improvement. Revenue growth rate of 30.6% from 2023 to 2024 is a positive sign, though the EBIT and EBITDA margins are low at 3.9%, indicating potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio improved to 0.31 in 2024, but is still higher compared to earlier years, indicating reliance on debt. The return on equity (ROE) at 15.8% in 2024 reflects a strong improvement, although the equity ratio has decreased to 44.8%, pointing towards increased liabilities relative to assets.

Cash Flow

There is a concerning negative operating cash flow in 2024, indicating potential liquidity issues. The free cash flow has declined significantly, and the free cash flow to net income ratio is negative, suggesting inefficiencies in converting income into cash. However, the company had positive operating cash flow in the previous year, indicating potential for recovery.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	327.13M	250.57M	204.04M	244.35M	219.86M
Gross Profit	136.97M	127.10M	106.45M	131.14M	136.14M
EBITDA	3.48M	-25.24M	-35.03M	-8.58M	-285.00K
Net Income	9.41M	-33.52M	-46.37M	-28.17M	-43.83M
Balance Sheet
Total Assets	132.86M	179.91M	129.97M	151.31M	174.32M
Cash, Cash Equivalents and Short-Term Investments	9.29M	23.30M	17.82M	33.39M	64.49M
Total Debt	18.57M	29.92M	29.04M	19.34M	32.09M
Total Liabilities	71.75M	141.27M	89.99M	62.62M	85.21M
Stockholders Equity	59.48M	37.09M	37.50M	84.70M	89.12M
Cash Flow
Free Cash Flow	-9.62M	5.50M	-6.02M	-19.93M	22.51M
Operating Cash Flow	-9.62M	9.93M	1.04M	-17.18M	39.55M
Investing Cash Flow	-2.27M	-21.77M	-6.79M	-12.71M	-16.51M
Financing Cash Flow	-2.12M	17.42M	-9.57M	-1.44M	-30.04M

Pacific Legend Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8547, the sentiment is Neutral. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.11, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.28 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8547.

Pacific Legend Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1418	73 Outperform	HK$355.25M	3.45	10.72%	7.76%	-1.05%	-2.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0396	52 Neutral	HK$91.31M	5.41	20.69%	8.93%	-13.44%	―
1691	45 Neutral	HK$6.13B	-10.58	-14.41%	―	1.29%	-386.78%
8547	42 Neutral	HK$45.52M	128.33	―	―	-21.85%	-98.18%
1575	39 Underperform	HK$154.76M	-5.65	―	―	-50.43%	79.67%
1198	39 Underperform	HK$356.00M	-0.69	-36.67%	―	―	―