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Le Saunda Holdings (0738) AI Stock Analysis

HK:0738

Le Saunda Holdings

(HKEX:0738)

Select Model
Rating:47.6Neutral
Price Target:HKD 0.29â–¼(-1.36% Downside)
Action:reiterated
Date:08/20/26

The overall score is constrained primarily by very weak fundamentals, including sustained revenue contraction, significant losses, and negative free cash flow, which collectively point to a business under structural pressure. Secondary support comes from strong short‑term price momentum and the shares trading above key moving averages, although overbought technical readings limit conviction in the trend. Valuation is hampered by loss‑driven negative earnings and no dividend, so potential upside rests largely on a high‑risk operational turnaround rather than current financial strength.

Positive Factors
Very low leverageMinimal leverage reduces refinancing pressure and interest-related strain, giving Le Saunda greater flexibility to manage a difficult operating period. This balance-sheet capacity can support restructuring, preserve strategic options, and reduce the risk that debt obligations amplify the impact of weak earnings.
Negative Factors
Severe revenue contractionThe steep annual decline and broader multi-year revenue downtrend indicate weakening commercial scale rather than a brief fluctuation. Persistent sales contraction reduces fixed-cost absorption, limits investment capacity, and makes it harder for the company to convert its gross margin into durable operating profits.

Le Saunda Holdings (0738) vs. iShares MSCI Hong Kong ETF (EWH)

-10%0%10%20%30%40%50%60%70%HK:0738+29.96%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 200.79M
Dividend Yield
―
Average Volume (3M)
559.58K
Price to Earnings (P/E)
-3.9
Beta (1Y)
0.34
Revenue Growth
-34.67%
EPS Growth
48.99%
Country
Hong Kong
Employees
264
Sector
Consumer Cyclical
Sector Strength
61
Industry
Apparel - Footwear & Accessories

Le Saunda Holdings Business Overview & Revenue Model

Company Description

Le Saunda Holdings Limited functions as an investment holding company primarily focused on the trade and retail of footwear and accessories across Mainland China, Hong Kong, and Macau. The company's activities span the full product lifecycle, from de...

How the Company Makes Money

null

Le Saunda Holdings Financial Statement Overview

Summary

Financial performance is weak, with multi‑year revenue decline, deep net losses, renewed operating cash burn, and rapid equity erosion, partially offset by low leverage and still‑solid gross margins.

Income Statement

18Very Negative

Balance Sheet

52Neutral

Cash Flow

24Negative
Financial statement breakdown
BreakdownTTMFeb 2025Feb 2024Feb 2023Feb 2022Feb 2021
Income Statement
Total Revenue240.31M171.47M294.10M401.43M413.23M569.03M
Gross Profit119.38M96.22M143.21M250.80M269.23M357.85M
EBITDA-70.80M-39.23M-80.97M7.03M-14.77M57.94M
Net Income-94.09M-56.24M-100.78M-23.54M-50.27M2.98M
Balance Sheet
Total Assets526.15M473.22M574.25M744.08M802.45M888.09M
Cash, Cash Equivalents and Short-Term Investments308.99M276.91M327.91M397.77M409.67M479.88M
Total Debt6.50M5.76M7.75M20.46M37.30M67.51M
Total Liabilities81.38M65.91M90.84M125.97M138.81M182.75M
Stockholders Equity444.77M407.31M483.41M613.78M655.52M696.01M
Cash Flow
Free Cash Flow-26.60M-39.99M-1.42M32.77M-29.24M-25.65M
Operating Cash Flow-22.28M-35.18M2.91M42.26M-12.85M-4.25M
Investing Cash Flow13.26M10.36M5.67M36.30M-49.83M-21.06M
Financing Cash Flow-11.35M-9.06M-47.28M-59.25M-47.07M-294.16M

Le Saunda Holdings Technical Analysis

Technical Analysis SentimentNegative
Last Price0.29

Price Trends

50DMA0.32Negative
100DMA0.31Negative
200DMA0.30Negative

Market Momentum

MACD-0.01Negative
RSI43.85Neutral
STOCH85.71Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0738, the sentiment is Negative. The current price of 0.29 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.32, and below the 200-day MA of 0.30, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0738.

Le Saunda Holdings Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:0738 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2683HK:268379OutperformHKD 441.32M5.0626.54%7.41%17.32%34.39%
HK:1836HK:183673OutperformHKD 11.01B11.2111.35%10.32%2.33%-22.20%
HK:1361HK:136168NeutralHKD 10.13B6.0112.73%7.16%13.07%17.56%
HK:0210HK:021067NeutralHKD 573.68M5.0411.96%6.90%1.49%-9.08%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
HK:0738HK:073848NeutralHKD 200.79M-3.90-11.48%―-34.67%48.99%
HK:1170HK:117042NeutralHKD 269.68M-3.84-6.97%12.30%-2.99%-111.29%

* Consumer Cyclical Sector Average

Performance Comparison

-20%0%20%40%60%HK:0738HK:0210HK:1170HK:1836HK:1361HK:2683Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:0738 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:0738Le Saunda Holdings 0.290.0729.96%
HK:0210Daphne International Holdings 0.29-0.11-27.86%
HK:1170Kingmaker Footwear Holdings 0.41-0.04-8.48%
HK:1836Stella International Holdings 13.08-2.02-13.38%
HK:1361361 Degrees International 4.67-0.82-14.91%
HK:2683Wah Sun Handbags International Holdings Ltd.1.080.3139.35%

Le Saunda Holdings Corporate Events

Le Saunda Narrows Interim Loss Amid Sharp Revenue Decline

Oct 26, 2026

Le Saunda Holdings reported a sharp year-on-year revenue decline for the six months ended 31 August 2026, with sales falling 28.9% to RMB68.1 million and gross profit dropping 40.8% to RMB32.9 million. The interim results remain in the red, though th...

Le Saunda Sets October Board Meeting to Approve Interim Results and Consider Dividend

Oct 13, 2026

Le Saunda Holdings has scheduled a board meeting in Hong Kong on 26 October 2026 to review and approve the interim results for the six months ended 31 August 2026 for the company and its subsidiaries. The board will also consider the declaration of a...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 20, 2026