Le Saunda Holdings (0738) AI Stock Analysis

• Market Cap: HK$175.06M
• Dividend Yield: N/A
• Average Volume (3M): 37.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -27.74%
• EPS Growth: -321.58%
• Country: HK
• Employees: 805
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): -0.10
• Shares Outstanding: 705,895,000
• 10 Day Avg. Volume: 85,800
• 30 Day Avg. Volume: 37,660
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 100.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Le Saunda Holdings is struggling financially, with declining revenue and profitability, which heavily impacts its overall score. While technical indicators show some short-term positive momentum, the poor valuation metrics, including a negative P/E ratio, further weigh down the score.

Le Saunda Holdings Business Overview & Revenue Model

Company Description

Le Saunda Holdings Limited, an investment holding company, trades and sells footwear and accessories in Mainland China, Hong Kong, and Macau. It designs, develops, manufactures, and retails ladies' and men's footwear, handbags, and fashionable accessories under the le saunda, le saunda MEN, LINEA ROSA, PITTI DONNA, and CNE brand names. The company also sells its products through online. It operated 389 stores, including 353 self-owned stores and 36 franchised stores. In addition, it is involved in the property holding business; provision of management services; holding and licensing of trademarks and names; and wholesale and trading of shoes. The company was founded in 1977 and is headquartered in Quarry Bay, Hong Kong.

How the Company Makes Money

Le Saunda Holdings generates revenue primarily through the retail sales of its footwear products in Mainland China and Macau. The company's revenue model is centered around its network of directly operated retail stores as well as e-commerce platforms, allowing it to reach a broad consumer audience. Le Saunda's earnings are influenced by factors such as consumer fashion trends, economic conditions in its key markets, and its ability to effectively manage its supply chain and inventory. Additionally, the company leverages partnerships with online platforms to enhance its sales channels and expand its market presence.

Le Saunda Holdings Financial Statement Overview

Summary

Le Saunda Holdings is facing significant financial challenges, with declining revenue and profitability over the years. Despite a solid equity base and low leverage, the company's cash flow issues and consistent losses pose a risk to its financial stability. The focus should be on improving operational efficiencies and revenue growth to enhance financial performance.

Income Statement

Le Saunda Holdings has experienced a significant decline in revenue over recent years, with a notable decrease from 2020 to 2025. The gross profit margin has also fallen, reflecting challenges in maintaining profitability. Additionally, the net profit margin has been negative for several periods, indicating consistent losses. While the company showed a positive EBITDA margin in 2022, it has since turned negative, further highlighting financial struggles.

Balance Sheet

The company's balance sheet shows a strong equity position, with a high equity ratio indicating financial stability. However, the return on equity is negative due to ongoing losses. The debt-to-equity ratio is low, suggesting low leverage, which is a positive aspect. Overall, the balance sheet reflects a solid capital structure despite profitability challenges.

Cash Flow

Le Saunda Holdings has struggled with cash flow management, highlighted by negative free cash flow in recent years. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income to cash. The free cash flow to net income ratio also shows challenges in generating cash relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	345.20M	294.10M	401.43M	413.23M	569.03M	594.22M
Gross Profit	195.30M	143.21M	250.80M	269.23M	357.85M	355.32M
EBITDA	-54.52M	-80.97M	7.03M	-14.77M	57.94M	21.79M
Net Income	-47.73M	-100.78M	-23.54M	-51.27M	2.98M	106.15M
Balance Sheet
Total Assets	655.46M	574.25M	744.08M	802.45M	888.09M	1.16B
Cash, Cash Equivalents and Short-Term Investments	368.00M	327.91M	364.65M	371.61M	442.64M	754.88M
Total Debt	15.84M	7.75M	20.46M	37.30M	67.51M	26.91M
Total Liabilities	114.88M	90.84M	125.97M	138.81M	182.75M	147.13M
Stockholders Equity	537.83M	483.41M	613.78M	655.52M	696.01M	997.68M
Cash Flow
Free Cash Flow	15.45M	-1.42M	32.77M	-29.24M	-25.65M	87.25M
Operating Cash Flow	24.94M	2.91M	42.26M	-12.85M	-4.25M	94.05M
Investing Cash Flow	81.41M	5.67M	36.30M	-49.83M	-21.06M	240.86M
Financing Cash Flow	-87.23M	-47.28M	-59.25M	-47.07M	-294.16M	-53.57M

Le Saunda Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Positive
• 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:0738, the sentiment is Positive. The current price of 0.25 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.24, and below the 200-day MA of 0.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.91 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0738.

Le Saunda Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2683	82 Outperform	347.33M	5.40	21.79%	8.24%	21.82%	125.68%
0210	74 Outperform	920.05M	7.40	14.95%	4.30%	0.00%	0.00%
1023	62 Neutral	500.61M	-26.80	0.00%	11.54%	-4.68%	-112.44%
1028	52 Neutral	450.71M	-2.87	4.10%	―	-11.17%	-621.38%
0738	48 Neutral	HK$175.06M	―	-18.39%	―	-27.74%	-321.58%
8285	41 Neutral	18.48M	-4.58	101.71%	―	-48.40%	66.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Le Saunda Holdings Corporate Events

Le Saunda Holdings Updates Nomination Committee Terms

Le Saunda Holdings Limited has revised the terms of reference for its Nomination Committee as of August 11, 2025. The committee is tasked with advising on the appointment of directors and senior management, ensuring the company’s continuous and healthy development. This move is aligned with the company’s commitment to maintaining a diverse and effective board structure, which is essential for supporting its corporate strategy and governance. The Nomination Committee will also review board diversity policies and nomination procedures annually, reflecting the company’s dedication to transparency and strategic leadership.

Le Saunda Holdings Passes All Resolutions at AGM

Le Saunda Holdings Limited announced that all proposed resolutions were successfully passed at their Annual General Meeting held on July 14, 2025. The resolutions included the re-election of directors, authorization for the board to appoint directors and fix their remuneration, re-appointment of PricewaterhouseCoopers as auditors, and granting mandates for share issuance and repurchase. These decisions reflect the company’s strategic direction and governance stability, potentially impacting shareholder confidence and market perception positively.