Pacific Legend Group Limited (8547) AI Stock Analysis

• Market Cap: HK$86.70M
• Dividend Yield: N/A
• Average Volume (3M): 8.45M
• Price to Earnings (P/E): 293.3
• Beta (1Y): -0.54
• 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: 492,639,500
• 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: 41 Neutral
• Price Target: HK$0.16 ▼(-35.60% Downside)

The overall stock score is primarily influenced by weak financial performance and technical indicators. The high P/E ratio suggests overvaluation, and the absence of a dividend yield further impacts the valuation negatively. The stock's bearish momentum and oversold technical indicators highlight potential risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's products, suggesting effective market strategies and potential for sustained expansion.

Gross Profit Margin

A stable gross profit margin reflects the company's ability to maintain pricing power and cost control, which is crucial for long-term profitability.

Improved Net Income

The turnaround in net income demonstrates improved operational performance and financial health, enhancing investor confidence in future profitability.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow suggests potential liquidity issues, which could hinder the company's ability to invest in growth and meet short-term obligations.

Rising Debt Levels

Increased reliance on debt can strain financial flexibility and elevate risk, potentially impacting long-term sustainability if not managed carefully.

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies and challenges in translating revenue growth into bottom-line profitability, which could affect future earnings.

Pacific Legend Group Limited Business Overview & Revenue Model

Company Description

Pacific Legend Group Limited (8547) is a dynamic company specializing in the development and distribution of a diverse range of consumer products, primarily focusing on lifestyle and home improvement sectors. The company is committed to delivering innovative solutions that enhance everyday living, with core offerings that include home décor, personal care products, and lifestyle accessories. Through its strategic partnerships and distribution networks, Pacific Legend Group aims to cater to a broad customer base both domestically and internationally.

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

Pacific Legend Group Limited shows improved net income and revenue growth, but operational inefficiencies and cash flow issues persist. The balance sheet indicates increased reliance on debt despite improved equity.

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: Negative
• Last Price: 0.25
• 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:8547, the sentiment is Negative. The current price of 0.25 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.24, and above the 200-day MA of 0.20, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 26.56 is Positive, neither overbought nor oversold. The STOCH value of 4.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$390.25M	3.79	10.72%	7.56%	-1.05%	-2.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0396	53 Neutral	HK$92.12M	5.45	20.69%	8.77%	-13.44%	―
1575	45 Neutral	HK$148.31M	―	―	―	-50.43%	79.67%
1691	45 Neutral	HK$6.51B	-11.23	-14.41%	―	1.29%	-386.78%
8547	41 Neutral	HK$86.70M	293.33	―	―	-21.85%	-98.18%
1198	39 Underperform	HK$337.81M	―	-36.67%	―	―	―