Pacific Legend Group Limited (8547) AI Stock Analysis

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Pacific Legend Group Limited

(HKEX:8547)

Select Model

Rating:42Neutral

Price Target:HKD 0.08▲(8.00% Upside)

Action:reiterated

Date:01/20/26

The score is held down primarily by weak cash flow (negative operating cash flow and poor free cash flow conversion) and a clearly bearish price trend (below all key moving averages with negative MACD). While the company shows improving profitability and strong revenue growth, the extremely high P/E and thin margins limit the overall score.

Positive Factors

Revenue recoveryA 30.6% revenue rebound demonstrates renewed demand and top-line momentum that can persist over several quarters. Sustained revenue expansion increases operating leverage, helps absorb fixed costs, and provides a platform to scale SG&A and product investments without immediate equity raises.

Negative Factors

Negative operating cash flowNegative operating cash flow undermines the company’s ability to fund operations and capex from internal cash, forcing reliance on external financing. Over months this impairs flexibility, raises refinancing risk, and can erode liquidity if earnings do not convert into sustainable cash generation.

Pacific Legend Group Limited (8547) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 66.50M
Dividend Yield: ―
Average Volume (3M): 37.02M
Price to Earnings (P/E): -0.9
Beta (1Y): -0.29
Revenue Growth: ―
EPS Growth: ―
Country: Hong Kong
Employees: 91
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Furnishings, Fixtures & Appliances

Pacific Legend Group Limited Business Overview & Revenue Model

Company Description

Pacific Legend Group Limited operates as an investment holding company, primarily engaged in the sale and rental of home furnishings and accessories. Its business footprint spans Hong Kong, the United Arab Emirates, and the People's Republic of China...

How the Company Makes Money

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Pacific Legend Group Limited Financial Statement Overview

Summary

Income statement shows recovery (net income turned positive and revenue grew 30.6%), but profitability is still thin (2.9% net margin; ~3.9% EBIT/EBITDA margins). Balance sheet leverage improved (debt-to-equity 0.31) and ROE rose (15.8%), yet equity ratio fell (44.8%). Cash flow is the key drag with negative operating cash flow and weak free-cash-flow conversion.

Income Statement

55Neutral

Balance Sheet

45Neutral

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	54.23M	327.13M	250.57M	204.04M	244.35M	219.86M
Gross Profit	21.68M	136.97M	127.10M	106.45M	131.14M	136.14M
EBITDA	-21.23M	-5.04M	-25.24M	-35.03M	-8.58M	-285.00K
Net Income	-25.34M	9.41M	-33.52M	-46.37M	-28.17M	-43.83M
Balance Sheet
Total Assets	126.29M	132.86M	179.91M	129.97M	151.31M	174.32M
Cash, Cash Equivalents and Short-Term Investments	23.19M	9.29M	23.30M	17.82M	33.39M	64.49M
Total Debt	19.93M	18.57M	29.92M	29.04M	19.34M	32.09M
Total Liabilities	66.03M	71.75M	141.27M	89.99M	62.62M	85.21M
Stockholders Equity	56.62M	56.79M	37.09M	37.50M	84.70M	89.12M
Cash Flow
Free Cash Flow	-18.50M	-9.62M	5.50M	-6.02M	-19.93M	22.51M
Operating Cash Flow	-18.50M	-9.62M	9.93M	1.04M	-17.18M	39.55M
Investing Cash Flow	78.00K	-2.27M	-22.21M	-6.79M	-12.71M	-16.51M
Financing Cash Flow	16.81M	-2.12M	17.42M	-9.57M	-1.44M	-30.04M

Pacific Legend Group Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.07

Price Trends

50DMA0.08Positive

100DMA0.09Negative

200DMA0.10Negative

Market Momentum

MACD-0.00Negative

RSI48.17Neutral

STOCH225.00Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8547, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 48.17 is Neutral, neither overbought nor oversold. The STOCH value of 225.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8547.

Pacific Legend Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HK:8547 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1999	65Neutral	HKD 9.28B	5.00	13.03%	10.21%	-2.80%	-12.13%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HK:1418	55Neutral	HKD 211.75M	4.65	4.32%	8.26%	35.18%	-56.12%
HK:0396	52Neutral	HKD 185.05M	-54.28	-8.97%	10.96%	-44.82%	-120.57%
HK:1198	42Neutral	HKD 384.59M	-0.49	-164.30%	―	-29.60%	-51.87%
HK:8547	42Neutral	HKD 79.81M	-0.86	-65.96%	―	―	―
HK:1575	41Neutral	HKD 189.21M	-1.77	26.53%	―	-59.38%	-200.00%

* Consumer Cyclical Sector Average

Performance Comparison

HK:8547 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8547	Pacific Legend Group Limited	0.07	-0.13	-62.50%
HK:1999	Man Wah Holdings	2.35	-2.40	-50.54%
HK:1198	Royale Home Holdings Limited	0.15	0.01	7.30%
HK:1418	Sinomax Group Ltd.	0.12	-0.12	-49.79%
HK:1575	Morris Home Holdings Limited	0.05	0.00	0.00%
HK:0396	Hing Lee (HK) Holdings Limited	0.23	0.11	90.00%

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: Jan 19, 2026

Pacific Legend Group Limited AI Stock Analysis