Movement Alert|LEGENDHOLDING Rises 5.25% in Regular Trading, H1 Profit Surges 219% While Core Asset Lenovo Group Rallies in Tandem

Market Focus09-04

On September 4, LEGENDHOLDING rose 5.25% in regular trading, trading at 19.61 HKD/share, with turnover of approximately HKD 112 million. The rally was driven by strong interim results and a synchronized advance in its core asset, Lenovo Group, which gained 5.57% on the same day.

On the earnings front, LEGENDHOLDING reported H1 revenue of RMB 362.9 billion, up 29% year-over-year, with attributable net profit surging 219% to RMB 22.3 billion, primarily fueled by a turnaround in its industrial incubation and investment segment as capital markets recovered. Infrastructure solutions revenue reached RMB 96.7 billion, up 62%, while AI server order backlog hit USD 54 billion. Adjusted net profit attributable to equity holders soared 834% to RMB 5.81 billion. The company also pushed 12 portfolio companies to IPO during the period.

Market analysis noted that LEGENDHOLDING's current market capitalization trades at a discount exceeding 60% to its stake in Lenovo Group alone, well below the five-year median discount of approximately 40%, suggesting potential for valuation gap narrowing. Citi previously maintained a Buy rating with a HKD 17 target price, citing a roughly 78% discount to estimated NAV.

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