Luen Thai Holdings Limited (0311) AI Stock Analysis

• Market Cap: HK$246.12M
• Dividend Yield: N/A
• Average Volume (3M): 20.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: 0.34%
• EPS Growth: -47.98%
• Country: HK
• Employees: 27,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): <0.01
• Shares Outstanding: 1,034,112,700
• 10 Day Avg. Volume: 400
• 30 Day Avg. Volume: 20,566
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -1.08
• 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: 51 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 51 reflects significant financial challenges, with declining revenues and negative cash flows being major concerns. Technical analysis shows strong momentum, but overbought conditions suggest caution. Valuation metrics are weak, with a negative P/E ratio and no dividend yield.

Luen Thai Holdings Limited Business Overview & Revenue Model

Company Description

Luen Thai Holdings Limited, an investment holding company, manufactures and trades in apparels and accessories in the People's Republic of China, the United States, Europe, Japan, Canada, and internationally. It sources, manufactures, and trades in textile and garment products; processes, trades in, imports, exports, and distributes garment products; and manufactures and trades in money pieces. In addition, it offers technical and management services; and manufactures and trades in handbags. The company was incorporated in 2004 and is headquartered in Kwun Tong, Hong Kong. Luen Thai Holdings Limited is a subsidiary of Shangtex (Hong Kong) Limited.

How the Company Makes Money

Luen Thai Holdings Limited makes money primarily through the design, manufacturing, and sale of apparel and textile products. The company's revenue model is based on large-scale production and distribution agreements with international fashion brands and retailers. By leveraging its extensive manufacturing facilities and supply chain capabilities across Asia and other regions, Luen Thai can deliver cost-effective and high-quality products to its clients. Key revenue streams include contract manufacturing for major brands, direct sales of its own branded products, and strategic partnerships with fashion and lifestyle companies. Additionally, the company's earnings are supported by its ability to adapt to changing fashion trends and consumer preferences, ensuring a steady demand for its services.

Luen Thai Holdings Limited Financial Statement Overview

Summary

Luen Thai Holdings Limited faces substantial financial challenges, with declining revenues, profitability, and negative cash flows. The balance sheet shows moderate stability, but liquidity constraints and operational inefficiencies pose significant risks.

Income Statement

The income statement reveals declining revenue and profitability. The gross profit margin has decreased over time, with negative EBIT and net income in 2024 indicating operational challenges. The revenue growth rate is negative, signifying a downturn in sales compared to previous years. Such trends suggest financial strain and potential inefficiencies in cost management.

Balance Sheet

The balance sheet shows a stable equity position despite declining equity over the years. The debt-to-equity ratio remains manageable, though slightly elevated, reflecting moderate leverage. The equity ratio has slightly decreased, indicating a greater reliance on liabilities. Overall, the balance sheet maintains moderate stability but highlights the need for improved financial management.

Cash Flow

Cash flow analysis highlights significant challenges with negative operating cash flow and declining free cash flow, indicating liquidity issues. The free cash flow to net income ratio is negative, reinforcing cash flow pressure. These factors suggest potential sustainability issues if not addressed, reflecting a need for strategic intervention to improve liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	665.69M	674.39M	696.63M	858.86M	795.66M	697.33M
Gross Profit	76.80M	74.24M	95.27M	125.33M	123.93M	83.10M
EBITDA	12.20M	7.01M	30.29M	43.73M	41.21M	994.00K
Net Income	-23.79M	-33.89M	-6.01M	9.91M	11.20M	-28.03M
Balance Sheet
Total Assets	480.92M	445.98M	475.00M	519.08M	562.00M	538.62M
Cash, Cash Equivalents and Short-Term Investments	99.88M	54.87M	100.46M	93.95M	140.16M	66.20M
Total Debt	194.66M	166.22M	166.00M	176.69M	181.18M	186.78M
Total Liabilities	324.22M	289.28M	283.31M	315.71M	358.12M	350.02M
Stockholders Equity	156.08M	155.95M	190.67M	206.47M	201.46M	186.10M
Cash Flow
Free Cash Flow	-14.02M	-21.03M	-5.01M	8.81M	47.38M	-7.44M
Operating Cash Flow	-11.87M	-18.13M	-1.29M	20.26M	56.47M	17.98M
Investing Cash Flow	166.00K	-84.00K	-908.00K	-10.23M	-7.49M	-26.55M
Financing Cash Flow	3.64M	-3.29M	-15.65M	-12.91M	-15.72M	-10.10M

Luen Thai Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0311, the sentiment is Negative. The current price of 0.24 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.23, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.05 is Neutral, neither overbought nor oversold. The STOCH value of 84.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0311.

Luen Thai Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1425	75 Outperform	HK$812.50M	5.15	21.11%	8.62%	-8.00%	-11.37%
1982	72 Outperform	HK$2.03B	5.93	14.40%	12.70%	-0.61%	-5.36%
2232	71 Outperform	HK$19.88B	11.89	14.24%	5.85%	14.76%	23.04%
2199	67 Neutral	HK$2.45B	13.32	5.63%	2.15%	11.73%	28.38%
2368	63 Neutral	HK$2.08B	9.41	13.04%	7.30%	17.99%	-20.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0311	51 Neutral	HK$246.12M	―	-14.53%	―	0.34%	-47.98%

Luen Thai Holdings Limited Corporate Events

Luen Thai Holdings Secures Shareholder Approval for Key Resolutions

Luen Thai Holdings Limited announced that all ordinary resolutions proposed at their Extraordinary General Meeting (EGM) on October 24, 2025, were approved by independent shareholders. The resolutions pertained to the Fabric Purchase Master Agreement, including its execution, delivery, and proposed annual caps for the years 2025 to 2027. This approval signifies a strategic move for Luen Thai Holdings Limited, potentially impacting its operational agreements and future financial planning.

Luen Thai Holdings to Discuss Key Procurement Agreement at Upcoming EGM

Luen Thai Holdings Limited has announced an Extraordinary General Meeting (EGM) to be held on 24 October 2025 in Hong Kong. The meeting will focus on approving the Fabric Purchase Master Agreement and its associated transactions, including proposed annual caps for the years 2025 to 2027. This development is significant for the company as it outlines strategic procurement plans that could impact its operational efficiencies and market positioning.

Luen Thai Holdings Delays Circular Dispatch for Fabric Agreement

Luen Thai Holdings Limited announced a delay in the dispatch of a circular related to its Fabric Purchase Master Agreement, initially expected by October 3, 2025, now postponed to October 8, 2025. This delay is due to the need for additional time to finalize certain information, impacting the timeline for shareholder review and decision-making processes.

Luen Thai Holdings Signs New Lease Master Agreement with LTG

Luen Thai Holdings Limited has entered into a new Lease Master Agreement with LTG, effective from October 1, 2025, to June 30, 2027, replacing the existing agreement. The termination of the previous agreement is deemed fair and reasonable, with no compensation required, and is not expected to adversely impact the company’s operations or financial condition. The new agreement involves connected transactions that are exempt from independent shareholders’ approval but require annual review under the Listing Rules.

Luen Thai Holdings Announces Delay in Circular Dispatch

Luen Thai Holdings Limited announced a delay in the dispatch of a circular related to the Fabric Purchase Master Agreement, initially expected by September 25, 2025. The new dispatch date is set for on or before October 3, 2025, due to additional time needed to finalize certain information. This delay may impact stakeholders awaiting further details on the agreement and related shareholder communications.

Luen Thai Holdings Delays Circular Dispatch for Fabric Agreement

Luen Thai Holdings Limited announced a delay in the dispatch of a circular related to its Fabric Purchase Master Agreement. The circular, which includes important details for shareholders, will now be sent out by September 25, 2025, due to the need for additional time to finalize certain information.

Luen Thai Holdings Reports Improved Interim Financial Results

Luen Thai Holdings Limited announced its interim results for the six-month period ending June 30, 2025, reporting a revenue of US$295.8 million, a slight decrease from the previous year. The company showed a significant turnaround with an operating profit of US$4.6 million compared to a loss in the prior year, and a profit attributable to owners of US$373,000, indicating improved financial performance and potential positive implications for stakeholders.

Luen Thai Enters Fabric Purchase Agreement with Shangtex

Luen Thai Holdings Limited has entered into a Fabric Purchase Master Agreement with Shangtex, a substantial shareholder, to procure fabric from 1 October 2025 to 31 December 2027. This agreement, classified as a continuing connected transaction under Hong Kong’s Listing Rules, requires independent shareholders’ approval due to its scale, with annual transaction caps exceeding 5% and HK$10,000,000. An Extraordinary General Meeting (EGM) will be held for shareholders to approve the agreement, with an Independent Board Committee and financial adviser appointed to guide the decision-making process.

Luen Thai Holdings Announces Upcoming Board Meeting for Interim Results

Luen Thai Holdings Limited has announced a board meeting scheduled for August 27, 2025, to review and approve the interim results for the first half of 2025 and to consider the declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential returns for stakeholders, impacting its market positioning and investor confidence.

Luen Thai Holdings Limited Announces Profit Alert with Improved Financial Performance

Luen Thai Holdings Limited has issued a profit alert indicating a significant improvement in its financial performance for the first half of 2025, expecting results to range from breakeven to a net profit of approximately US$0.5 million, compared to a net loss of US$9.7 million in the same period of 2024. This improvement is attributed to the absence of non-recurring expenses, enhanced gross profit margins, and reduced finance costs. However, the company remains cautious due to ongoing challenges such as the US reciprocal tariff policy, and plans to continue implementing cost control measures and strategic adjustments to navigate the uncertain market conditions.