Analysis of Legend Strategy International (01355.HK)'s Strategic Transformation to the Synthetic Biology Sector

Legend Strategy International (01355.HK) has recently attracted market attention due to its major strategic transformation from traditional hotel accommodation business to the synthetic biology field. On December 23, 2025, the company announced its plan to rename itself “Biosysen Limited” (Biosystems Engineering Co., Ltd.) and acquire a 37.5% stake in Beisheng Biology by purchasing 100% equity of Ono Hong Kong, officially entering the synthetic biology infrastructure track[1][2]. The stock’s current share price is approximately HK$0.124, with a market capitalization of approximately HK$121 million to HK$149 million, making it a typical micro-cap speculative target. Although the transformation concept aligns with the current capital market’s enthusiasm for the synthetic biology track, issues such as sustained losses, negative net assets, and insufficient liquidity have placed the company at a high risk level. Investors need to carefully evaluate its speculative value and potential risks.

This analysis is based on reports from Tianyue Information[1] and Sina Finance[2], both published on December 23, 2025, which detail Legend Strategy International’s strategic transformation plan. The core timeline of the event is late December 2025, when the company announced two major capital operations, marking a fundamental shift in its business direction. In terms of timing, the announcement coincided with the continued rise of the synthetic biology concept in the Asia-Pacific capital market, demonstrating a certain degree of market timing alignment.

The company plans to change its name from “Legend Strategy International Holdings Group Company Limited” to “Biosysen Limited” and adopt the Chinese name “生物系统工程有限公司” (Biosystems Engineering Co., Ltd.)[1]. Renaming initiatives in the capital market usually carry multiple signaling functions: First, it clearly conveys the company’s determination to reshape its business, cutting ties with its traditional hotel accommodation business; Second, the name “Biosysen” directly anchors the company to the synthetic biology track, enhancing its brand recognition in the emerging sector; Third, the Chinese name “生物系统工程有限公司” further reinforces this positioning, helping to attract mainland investors who focus on Stock Connect targets.

The company will acquire 100% of the issued share capital of Ono Hong Kong for HK$22 million through its wholly-owned subsidiary Jiayi Global, and upon completion of the transaction, it will indirectly hold a 37.5% stake in Beisheng Biology[2]. As a synthetic biology infrastructure supplier, Beisheng Biology’s core capabilities include strain design, fermentation process development, de novo DNA synthesis, and a complete R&D and production chain from small-scale trials to pilot-scale trials[2]. From the perspective of industrial chain positioning, Beisheng Biology is in the midstream of the synthetic biology industry, providing critical R&D and production infrastructure support for downstream synthetic biology enterprises, biopharmaceutical enterprises, and traditional fermentation enterprises. This type of platform asset has strong customer stickiness and potential for scale effects.

Legend Strategy International’s current R&D focus is on the healthcare and beauty sectors, including type III collagen-hyaluronic acid “dual-protein” mesotherapy injections and hydroxyapatite/collagen composite fillers[2]. Both product categories are popular in the medical aesthetics consumer sector, with strong market demand and high gross profit margins. However, it should be noted that the transition from the R&D stage to commercial mass production usually requires a long cycle and overcoming multiple obstacles such as regulatory approval, capacity construction, and market promotion. After acquiring Beisheng Biology, although the company can leverage its infrastructure capabilities to improve R&D efficiency and reduce R&D costs, there remains significant uncertainty regarding the timeline and success rate of product commercialization[2].

As of the analysis date, Legend Strategy International’s share price remains around HK$0.124, with a 52-week price range of HK$0.064 to HK$0.238, representing an approximately 37% increase from the 52-week low[3]. From a valuation perspective, the company’s P/E ratio is -2.07x and P/B ratio is -33.15x. These extreme negative valuation indicators reflect the market’s concerns about the company’s financial condition[0][3]. Negative net assets mean the company is insolvent, a relatively rare situation among mainboard-listed companies in Hong Kong, highlighting its fundamental risks.

The stock’s trading characteristics exhibit typical micro-cap stock attributes. The daily trading volume is only 40,000 shares, far below the average daily trading volume of 600,000 shares, with a volume ratio of only 0.15, indicating extremely limited market participation[0][3]. The order book imbalance ratio is -94.74%, indicating heavy selling pressure and insufficient buying interest[0]. Low liquidity brings dual risks: On one hand, investors may face difficulties in liquidating their positions after purchase; On the other hand, any large transaction may trigger sharp fluctuations in the share price. This liquidity characteristic, combined with the company’s high-risk attributes, further amplifies investment uncertainty.

From the long-side perspective, Legend Strategy International’s strategic transformation has several attractive aspects. As a national strategic emerging industry, synthetic biology aligns with the policy direction of promoting the development of new-quality productive forces, with broad growth space in the sector. The acquisition of Beisheng Biology can form synergies with the company’s existing medical aesthetics R&D; after the acquisition is completed, the company has the right to nominate 2 of the 5 directors on Beisheng Biology’s board of directors, indicating that it has substantial influence over the target asset[2]. The renaming to “Biosysen” clearly signals the transformation, which is expected to increase the attention of institutional investors.

The short-side viewpoint is equally compelling. The transition from traditional hotel accommodation to the high-tech synthetic biology field is a huge leap, and the management’s industry experience and technical capabilities in the new sector remain to be verified[2]. The company is currently in a state of sustained losses, with an EPS of -HK$0.06, and its profit prospects are unclear. Insufficient liquidity means that large-scale buying or selling may cause sharp price fluctuations, placing high demands on investors’ risk management capabilities. With a market capitalization of only HK$120 million to HK$150 million, the company has weak risk resistance, and any business setback may cause a disproportionate impact on the company. In addition, the acquisition transaction has not yet been finalized, and there are still uncertainties in subsequent links such as regulatory approval, fund settlement, and team integration.

According to the internal analysis results from the Jinling Analysis Database[0], the company’s financial status presents the following characteristics: Free cash flow is approximately HK$24.01 million, providing a certain buffer for short-term operations; debt risk is assessed as medium-level; however, the company adopts conservative accounting treatment overall, and the high depreciation/capital expenditure ratio continues to pressure profits. Most critically, the company has not yet achieved profitability, has negative net assets, faces insolvency risks, and requires substantial capital investment for business transformation. These factors constitute core warning signals in its fundamentals.

From a technical analysis perspective, it is recommended to pay attention to the following key price levels: For resistance levels, HK$0.15 is an important psychological level, HK$0.20 is an integer level, and HK$0.238 is the 52-week high; for support levels, HK$0.10 is an integer support level, HK$0.08 is the previous low range, and HK$0.064 is the 52-week low[0]. Investors can set stop-loss and take-profit levels based on their own risk preferences.

The core driver behind Legend Strategy International becoming a hot stock is the concept premium brought by its strategic transformation. The company’s leap from traditional hotel accommodation business to the synthetic biology sector not only reflects the management’s intention to seek a business breakthrough but also aligns with the capital market’s enthusiasm for emerging industries. The HK$22 million acquisition transaction has allowed it to acquire a 37.5% stake in Beisheng Biology, providing infrastructure support for subsequent medical aesthetics product R&D. However, when evaluating this target, investors must fully recognize the following: Fundamental factors such as sustained losses, negative net assets, and insufficient liquidity constitute substantial risk exposure; the execution difficulty and uncertainty of cross-industry transformation cannot be underestimated; as a micro-cap stock with a market capitalization of only over HK$100 million, its share price volatility may exceed the tolerance of ordinary investors.

This stock is a high-risk speculative investment, only suitable for investors who meet the following conditions to follow moderately: Those who fully understand the high uncertainty of business transformation, can bear the risk of total or partial loss of principal, and have the ability to continuously track the company’s subsequent announcements and business progress. For risk-averse investors, such targets should be excluded from investment portfolios.

[0] Jinling Analysis Database - Market Data and Financial Analysis Tool

[1] [Tianyue Information - Legend Strategy International (01355.HK) Plans to Rename to “Biosystems Engineering Co., Ltd.”] (https://www.tianyuezx.com/pages/info.aspx?zxid=5139850&wlm=1&navId=7) - December 23, 2025

[2] Sina Finance - Legend Strategy International (01355) Plans to Acquire 100% of the Issued Share Capital of Ono Hong Kong - December 23, 2025

[3] Xueqiu - Legend Strategy International (01355) Stock Price - Real-time Market Data

[4] Yahoo Finance - LEGEND STRAT (1355.HK) Stock Price - Company Basic Information and Statistical Data