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3396

Legend HoldingsSEHK:3396 Stock Report

Market Cap

HK$35.9b

7D

-7.0%

1Y

62.0%

Updated

25 Sep, 2021

Data

Company Financials +
3396 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends3/6

3396 Overview

Legend Holdings Corporation, an diversified investment holding company, together with its subsidiaries, operates in information technology (IT), financial services, innovative consumption and services, agriculture and food, advanced manufacturing and professional services, and financial investments businesses in the People’s Republic of China and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Legend Holdings
Historical stock prices
Current Share PriceHK$15.24
52 Week HighHK$9.21
52 Week LowHK$18.12
Beta0.86
1 Month Change29.81%
3 Month Change13.73%
1 Year Change61.96%
3 Year Change-36.50%
5 Year Change-19.71%
Change since IPO-64.52%

Recent News & Updates

Sep 12
When Should You Buy Legend Holdings Corporation (HKG:3396)?

When Should You Buy Legend Holdings Corporation (HKG:3396)?

While Legend Holdings Corporation ( HKG:3396 ) might not be the most widely known stock at the moment, it received a...

Aug 22
Do Legend Holdings's (HKG:3396) Earnings Warrant Your Attention?

Do Legend Holdings's (HKG:3396) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

3396HK TechHK Market
7D-7.0%-3.8%-2.4%
1Y62.0%19.5%9.1%

Return vs Industry: 3396 exceeded the Hong Kong Tech industry which returned 19.5% over the past year.

Return vs Market: 3396 exceeded the Hong Kong Market which returned 9.1% over the past year.

Price Volatility

Is 3396's price volatile compared to industry and market?
3396 volatility
3396 Beta0.86
Industry Beta1.37
Market Beta1

Stable Share Price: 3396 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 3396's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198484,000Peng Lihttps://www.legendholdings.com.cn

Legend Holdings Corporation, an diversified investment holding company, together with its subsidiaries, operates in information technology (IT), financial services, innovative consumption and services, agriculture and food, advanced manufacturing and professional services, and financial investments businesses in the People’s Republic of China and internationally. The company’s IT segment develops, manufactures, and markets technology products and services to customers and enterprises. Its Financial Services segment offers banking, short-term financing, financial leasing, insurance brokerage, third party payment, internet finance, property insurance, and other related business services.

Legend Holdings Fundamentals Summary

How do Legend Holdings's earnings and revenue compare to its market cap?
3396 fundamental statistics
Market CapCN¥29.82b
Earnings (TTM)CN¥19.19b
Revenue (TTM)CN¥462.95b

1.6x

P/E Ratio

0.06x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
3396 income statement (TTM)
RevenueCN¥462.95b
Cost of RevenueCN¥382.76b
Gross ProfitCN¥80.19b
ExpensesCN¥61.00b
EarningsCN¥19.19b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)8.15
Gross Margin17.32%
Net Profit Margin4.15%
Debt/Equity Ratio188.0%

How did 3396 perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

4%

Payout Ratio

Valuation

Is Legend Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3396 (HK$15.24) is trading below our estimate of fair value (HK$128.94)

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


Price To Earnings Ratio

PE vs Industry: 3396 is good value based on its PE Ratio (1.6x) compared to the Hong Kong Tech industry average (8.8x).

PE vs Market: 3396 is good value based on its PE Ratio (1.6x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 3396's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 3396 is good value based on its PB Ratio (0.5x) compared to the HK Tech industry average (1.3x).


Future Growth

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

-49.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3396's earnings are forecast to decline over the next 3 years (-49.4% per year).

Earnings vs Market: 3396's earnings are forecast to decline over the next 3 years (-49.4% per year).

High Growth Earnings: 3396's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 3396's revenue (4.4% per year) is forecast to grow slower than the Hong Kong market (12.3% per year).

High Growth Revenue: 3396's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3396's Return on Equity is forecast to be low in 3 years time (10.6%).


Past Performance

How has Legend Holdings performed over the past 5 years?

35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3396 has high quality earnings.

Growing Profit Margin: 3396's current net profit margins (4.1%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: 3396's earnings have grown significantly by 35% per year over the past 5 years.

Accelerating Growth: 3396's earnings growth over the past year (73.4%) exceeds its 5-year average (35% per year).

Earnings vs Industry: 3396 earnings growth over the past year (73.4%) underperformed the Tech industry 73.4%.


Return on Equity

High ROE: 3396's Return on Equity (19.4%) is considered low.


Financial Health

How is Legend Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3396's short term assets (CN¥325.5B) do not cover its short term liabilities (CN¥409.2B).

Long Term Liabilities: 3396's short term assets (CN¥325.5B) exceed its long term liabilities (CN¥164.7B).


Debt to Equity History and Analysis

Debt Level: 3396's debt to equity ratio (188%) is considered high.

Reducing Debt: 3396's debt to equity ratio has increased from 134% to 188% over the past 5 years.

Debt Coverage: 3396's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: 3396 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3396's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 3396's dividend (2.84%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.83%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (4.3%), 3396's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3396's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Peng Li (48 yo)

1.67yrs

Tenure

CN¥48,328,000

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

Compensation vs Market: Peng's total compensation ($USD7.47M) is above average for companies of similar size in the Hong Kong market ($USD708.08K).

Compensation vs Earnings: Insufficient data to compare Peng's compensation with company performance.


Leadership Team

Experienced Management: 3396's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: 3396's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: HK$35.909b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 10:04
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.