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Legend Holdings (3396) Fair Value & Analysis

Technology · HK · Market cap HK$32.1B

LH Legend Holdings 3396 · HK
PriceHK$20.10
Fair ValueHK$34.04
Upside+69.4%
Quality45/100
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Expensive Growth
Thin margins · 1.3% net margin
High debt · negative free cash flow
Mixed vs. peers (6/13)
Narrow moat 42/100
Evidence: Medium Range HK$34.04 – HK$34.04 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated yesterday

Share price +50.3% over the past month.

Below-average quality, screening 69% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$34.04). The market is more pessimistic than our downside scenario.
  • Solid quality (45/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$20.10 HK$5.10 Fair Value HK$34.04 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$5.10 – HK$20.10 · the HK$20.10 price screens below the HK$34.04 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Legend Holdings (3396) currently trades at HK$20.10, while our model-based Fair Value estimate is HK$34.04, implying the stock looks roughly 69.4% undervalued today. The Quality Score stands at 45/100 (below-average quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Legend Holdings generated revenue of HK$50.7B at a net margin of 1.3%. Revenue declined 9.7% year over year. It earns a return on equity of 186.4%. Net debt stands at HK$125B. Fundamentals as of Aug 13, 2026

The share trades near its 52-week high and 161% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at 69%, 3396 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$30.68 HK$28.84 HK$22.43 76
ROIC Compounder HK$180.34 HK$231.25 HK$290.56 72
Gordon GGM HK$0.9900 HK$2.05 HK$3.26 70
All 16 models by family
Earnings-Based
Graham-Dodd HK$5.67 HK$21.50 HK$29.10 54
Lynch FV HK$5.21 HK$7.45 HK$9.68 50
PEG = 1.0 HK$5.21 HK$7.45 HK$9.68 46
EPV HK$165.24 HK$194.07 HK$219.30 59
Dividend Discount
Gordon GGM HK$0.9900 HK$2.05 HK$3.26 70
DDM Multi-Stage HK$0.9900 HK$1.73 HK$2.16 61
Multiples
P/E Multiple HK$17.52 HK$23.35 HK$29.19 63
P/S Multiple HK$10.63 HK$14.18 HK$17.72 58
P/B Multiple HK$10.63 HK$14.18 HK$17.72 55
EV/EBIT HK$371.76 HK$498.26 HK$624.77 53
EV/EBITDA HK$403.37 HK$540.41 HK$677.45 54
EV/Revenue HK$184.11 HK$266.34 HK$348.57 43
Asset-Based
NCAV (Graham) HK$21.95 HK$29.41 HK$43.89 50
Economic Profit
Residual Income HK$30.68 HK$28.84 HK$22.43 76
ROIC Compounder HK$180.34 HK$231.25 HK$290.56 72
Growth Earnings
Growth-Adj P/E HK$11.46 HK$16.37 HK$21.28 68

Widest divergence: Asset-Based (HK$29.41) versus Dividend Discount (HK$1.73). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$50.7B
Revenue growth (YoY) -9.7%
Net margin 1.3%
Return on equity 186%
Free cash flow −HK$17.3B FY2025
P/E ratio 36.8 as of Jul 2, 2026
More key figures
Operating margin 1.6%
EPS (TTM) HK$0.2500
EPS growth (YoY) -63.5%
Net debt HK$125B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 39 · Market factors (momentum, volatility) 86

Profitability 27
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 13
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 98
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Legend Holdings Corporation, along with its subsidiaries, operates in the industrial operations and industrial incubations and investments sectors in the People's Republic of China and internationally.

Full company description

Legend Holdings Corporation, along with its subsidiaries, operates in the industrial operations and industrial incubations and investments sectors in the People's Republic of China and internationally. The company provides intelligent devices and infrastructure, creates intelligent solutions, services, and software; research, develops, produces, and sells advanced material products; engages in agriculture and food-related businesses; and offers integrated banking services, including corporate and institutional banking, retail banking, private banking, and capital markets. It also invests in private equity and venture capital funds as a limited partner; holds interest in the general partners of various funds; and makes angel investments in technology start-ups, as well as minority investments in other entities. In addition, it engages in aviation logistics, financial services, medical and healthcare, and office leasing-related businesses. Further, it develops car management software, chemicals, and energy materials; provides car services, information consulting, cold chain, insurance, investment management, and medical consultation services; and engages in real estate investment, asset management, enterprise management, and project investment. Additionally, the company is involved in agriculture product planting and trading, agricultural investment, logistics, and food investment activities; trades in, processes, and sells seafood and other animal protein-related products; offers office building rental and services; develops and manufactures new energy technologies; provides financial services; engages in banking and insurance; and produces and sells salmon. Legend Holdings Corporation was incorporated in 1984 and is headquartered in Beijing, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Legend Holdings reported revenue of HK$613B in FY2025 versus HK$490B in FY2021, a compound +5.8%/yr. Reported net income was HK$1.1B in FY2025, compounding −34.5%/yr from FY2021.

Growth Quality 49/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$613B
Latest YoY
+17.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.0%
Avg. growth/yr (17Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.3%
Revenue +5.8%/yr
FY21 HK$490B
FY22 HK$484B
FY23 HK$443B
FY24 HK$522B
FY25 HK$613B
Net income −34.5%/yr
FY21 HK$5.8B
FY22 HK$1.2B
FY23 −HK$3.9B
FY24 HK$133M
FY25 HK$1.1B

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Cite: Fair Value Calculator (2026). "Legend Holdings Fair Value". https://www.fairvalue-calculator.com/stock/3396

Peer Group

Computer Hardware · 224 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 45 · Below median
Fair Value upside +69% · Top 25%
Return on equity (TTM) 186% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth -10% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 1.53× · Higher than 75% of peers

Valuation Multiples vs Computer Hardware median · lower = cheaper

P/E (TTM) 36.8× · Pricier than median
P/B 0.58× · Cheaper than 75% of peers
P/S (TTM) 0.63× · Cheaper than median
EV/EBITDA 1.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 0 · sector 59
PAST 100 · sector 23
HEALTH 23 · sector 97
DIVIDEND 0 · sector 42

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Computer Hardware stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Dell Technologies Inc DELL $484.50 $187.75 -61%
Arista Networks, Inc ANET $210.50 $57.72 -73%
Western Digital Corporation WDC $454.10 $90.94 -80%
Hygon Information Technology Co 688041 ¥287.66 ¥30.66 -89%
Hangzhou Hikvision Digital Technology Co 002415 ¥36.47 ¥40.44 +11%
Shenzhen Longsys Electronics Co 301308 ¥414.30 ¥91.67 -78%
Lenovo Group 0992 HK$29.04 HK$4.30 -85%
Dawning Information Industry Co 603019 ¥86.42 ¥39.38 -54%
Inspur Electronic Information Industry Co 000977 ¥75.02 ¥44.02 -41%
Lite-On Technology Corporation 2301 269.50 TWD 121.96 TWD -55%

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Frequently asked questions

Is Legend Holdings (3396) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$34.04 versus a price of HK$20.10, about +69% (undervalued).
What is the fair value of 3396?
Our model-based fair value for Legend Holdings is HK$34.04 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$20.10.
What is the quality score of 3396?
Legend Holdings has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Legend Holdings (3396)?
Legend Holdings reported trailing-twelve-month revenue of about HK$50.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 3396?
The net profit margin of Legend Holdings is about 1.3%, meaning it keeps roughly 1.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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