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3396

Legend Holdings SEHK:3396 Stock Report

Last Price

HK$6.82

Market Cap

HK$16.1b

7D

-11.0%

1Y

-54.8%

Updated

01 Oct, 2022

Data

Company Financials +
3396 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends3/6

3396 Stock Overview

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.

Legend Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Legend Holdings
Historical stock prices
Current Share PriceHK$6.82
52 Week HighHK$16.48
52 Week LowHK$6.71
Beta0.55
1 Month Change-24.31%
3 Month Change-33.79%
1 Year Change-54.83%
3 Year Change-60.76%
5 Year Change-67.13%
Change since IPO-84.12%

Recent News & Updates

Aug 25
A Look At The Fair Value Of Legend Holdings Corporation (HKG:3396)

A Look At The Fair Value Of Legend Holdings Corporation (HKG:3396)

How far off is Legend Holdings Corporation ( HKG:3396 ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

3396HK TechHK Market
7D-11.0%-5.9%-4.4%
1Y-54.8%-53.8%-28.8%

Return vs Industry: 3396 underperformed the Hong Kong Tech industry which returned -53.8% over the past year.

Return vs Market: 3396 underperformed the Hong Kong Market which returned -28.8% over the past year.

Price Volatility

Is 3396's price volatile compared to industry and market?
3396 volatility
3396 Average Weekly Movement4.6%
Tech Industry Average Movement5.0%
Market Average Movement6.4%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 3396 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 3396's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198488,000Peng Lihttps://www.legendholdings.com.cn

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.

Legend Holdings Fundamentals Summary

How do Legend Holdings's earnings and revenue compare to its market cap?
3396 fundamental statistics
Market CapHK$16.07b
Earnings (TTM)HK$1.89b
Revenue (TTM)HK$552.08b

8.5x

P/E Ratio

0.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3396 income statement (TTM)
RevenueCN¥500.35b
Cost of RevenueCN¥410.93b
Gross ProfitCN¥89.42b
Other ExpensesCN¥87.70b
EarningsCN¥1.72b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.73
Gross Margin17.87%
Net Profit Margin0.34%
Debt/Equity Ratio160.3%

How did 3396 perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

54%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 3396 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3396?

Other financial metrics that can be useful for relative valuation.

3396 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA3.4x
PEG Ratio0.1x

Price to Earnings Ratio vs Peers

How does 3396's PE Ratio compare to its peers?

3396 PE Ratio vs Peers
The above table shows the PE ratio for 3396 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.5x
992 Lenovo Group
4.1x5.9%HK$66.2b
2385 Readboy Education Holding
196.1xn/aHK$2.3b
2308 EVOC Intelligent Technology
11.7xn/aHK$2.1b
1263 PC Partner Group
0.7xn/aHK$1.6b
3396 Legend Holdings
8.5x82.7%HK$16.1b

Price-To-Earnings vs Peers: 3396 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (16.5x).


Price to Earnings Ratio vs Industry

How does 3396's PE Ratio compare vs other companies in the Asian Tech Industry?

Price-To-Earnings vs Industry: 3396 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the Asian Tech industry average (13.2x)


Price to Earnings Ratio vs Fair Ratio

What is 3396's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3396 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.5x
Fair PE Ratio31.2x

Price-To-Earnings vs Fair Ratio: 3396 is good value based on its Price-To-Earnings Ratio (8.5x) compared to the estimated Fair Price-To-Earnings Ratio (31.2x).


Share Price vs Fair Value

What is the Fair Price of 3396 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3396 (HK$6.82) is trading below our estimate of fair value (HK$149.15)

Significantly Below Fair Value: 3396 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

How is Legend Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


82.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3396's forecast earnings growth (82.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 3396's earnings (82.7% per year) are forecast to grow faster than the Hong Kong market (16.8% per year).

High Growth Earnings: 3396's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3396's revenue (9.2% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 3396's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 3396's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Legend Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 3396 has a large one-off loss of CN¥6.9B impacting its June 30 2022 financial results.

Growing Profit Margin: 3396's current net profit margins (0.3%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 3396's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: 3396's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3396 had negative earnings growth (-82%) over the past year, making it difficult to compare to the Tech industry average (-11%).


Return on Equity

High ROE: 3396's Return on Equity (12.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Legend Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 3396's short term assets (CN¥364.7B) do not cover its short term liabilities (CN¥456.3B).

Long Term Liabilities: 3396's short term assets (CN¥364.7B) exceed its long term liabilities (CN¥137.3B).


Debt to Equity History and Analysis

Debt Level: 3396's net debt to equity ratio (46.1%) is considered high.

Reducing Debt: 3396's debt to equity ratio has increased from 118.3% to 160.3% over the past 5 years.

Debt Coverage: 3396's debt is well covered by operating cash flow (20.9%).

Interest Coverage: 3396's interest payments on its debt are well covered by EBIT (21x coverage).


Balance Sheet


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Dividend

What is Legend Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.47%

Current Dividend Yield

Dividend Yield vs Market

Legend Holdings Dividend Yield vs Market
How does Legend Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (Legend Holdings)6.5%
Market Bottom 25% (HK)3.0%
Market Top 25% (HK)8.9%
Industry Average (Tech)3.6%
Analyst forecast in 3 Years (Legend Holdings)7.8%

Notable Dividend: 3396's dividend (6.47%) is higher than the bottom 25% of dividend payers in the Hong Kong market (3.01%).

High Dividend: 3396's dividend (6.47%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.94%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 3396 has been paying a dividend for less than 10 years.

Growing Dividend: 3396's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.4%), 3396's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (4.3%), 3396's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Peng Li (49 yo)

2.58yrs

Tenure

CN¥13,435,000

Compensation

Mr. Peng Li has been the Chief Executive Officer of Legend Holdings Corporation since 2020 and its Executive Director since February 13, 2020. He served as the President of Holdings Corporation since Janua...


CEO Compensation Analysis

Peng Li's Compensation vs Legend Holdings Earnings
How has Peng Li's remuneration changed compared to Legend Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

CN¥2b

Mar 31 2022n/an/a

CN¥4b

Dec 31 2021CN¥13mCN¥11m

CN¥6b

Sep 30 2021n/an/a

CN¥8b

Jun 30 2021n/an/a

CN¥10b

Mar 31 2021n/an/a

CN¥7b

Dec 31 2020CN¥48mCN¥11m

CN¥4b

Compensation vs Market: Peng's total compensation ($USD1.89M) is above average for companies of similar size in the Hong Kong market ($USD443.41K).

Compensation vs Earnings: Peng's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 3396's management team is seasoned and experienced (5.1 years average tenure).


Board Members

Experienced Board: 3396's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of 3396?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders155,374,1006.6%
Institutions297,286,46312.6%
General Public465,713,42719.8%
VC/PE Firms684,376,91029.0%
Private Companies753,480,00032.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 41.35% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
20.37%
Beijing Lian Chi Zhi Tung Management Consulting Ltd.
480,000,000CN¥3.3b0%no data
11.61%
Tonghai Holdings Co., Ltd
273,480,000CN¥1.9b0%no data
2.89%
Chuanzhi Liu
68,000,000CN¥463.8m0%no data
2.16%
Linan Zhu
50,830,000CN¥346.7m0%no data
1.53%
Min Ning
36,000,000CN¥245.5m0%no data
0.87%
The Vanguard Group, Inc.
20,454,577CN¥139.5m0.46%no data
0.44%
Dimensional Fund Advisors LP
10,447,554CN¥71.3m2.58%no data
0.4%
China Asset Management Co., Ltd.
9,493,600CN¥64.7m0%0.02%
0.26%
Norges Bank Investment Management
6,137,227CN¥41.9m0%no data
0.23%
Charles Schwab Investment Management, Inc.
5,456,428CN¥37.2m0.86%no data
0.13%
AXA Investment Managers S.A.
3,139,300CN¥21.4m0%0.01%
0.11%
BNY Mellon Asset Management
2,584,700CN¥17.6m2.95%no data
0.072%
Jupiter Fund Management Plc
1,703,800CN¥11.6m60.49%0.01%
0.05%
Mackenzie Financial Corporation
1,186,651CN¥8.1m0%no data
0.043%
Boston Partners Global Investors, Inc.
1,005,900CN¥6.9m0%no data
0.042%
Union Asset Management Holding AG
991,100CN¥6.8m0%no data
0.023%
Peng Li
544,100CN¥3.7m0%no data
0.022%
ALPS Advisors, Inc.
525,500CN¥3.6m13.92%no data
0.021%
KLP Kapitalforvaltning AS
498,300CN¥3.4m0%no data
0.019%
Dodge & Cox
452,686CN¥3.1m0%no data
0.015%
BlackRock, Inc.
364,400CN¥2.5m0%no data
0.011%
Northern Trust Global Investments
248,600CN¥1.7m0%no data
0.01%
State Street Global Advisors, Inc.
241,758CN¥1.6m4.95%no data
0.01%
Allianz Asset Management AG
238,000CN¥1.6m0%no data
0.0092%
Russell Investment Management, LLC
216,000CN¥1.5m0%no data

Company Information

Legend Holdings Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Legend Holdings Corporation
  • Ticker: 3396
  • Exchange: SEHK
  • Founded: 1984
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Implied Market Cap: HK$16.069b
  • Shares outstanding: 2.36b
  • Website: https://www.legendholdings.com.cn

Number of Employees


Location

  • Legend Holdings Corporation
  • Court No. 2, Ke Xue Yuan Nanlu
  • 17th Floor
  • Beijing
  • 100190
  • China


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3396SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares Foreign ListedHKHKDJun 2015
1PCDB (Deutsche Boerse AG)YesForeign Shares Foreign ListedDEEURJun 2015
3396SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares Foreign ListedHKHKDJun 2015
3396SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares Foreign ListedHKHKDJun 2015
LGNR.FOTCPK (Pink Sheets LLC)YesForeign Shares Foreign ListedUSUSDJun 2015

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.