HK Stock Market Move | LEGENDHOLDING (03396) Rises Over 5% Again on Potential Sale of 90% Stake in Banque Internationale Luxembourg, Company Focuses on Technology Operations with Continued Improvement

LEGENDHOLDING (03396) rose over 5% again, with its stock price up 1.8 times cumulatively so far this year. As of press time, it was up 5.05% at HK$24.96, with a turnover of HK$208 million. On the news front, LEGENDHOLDING is reportedly seeking to sell its 90% stake in Banque Internationale Luxembourg (BIL), with the first round of bidding expected to close around the end of September, at a valuation that could reach EUR 2.5 billion (approximately HK$22.5 billion) or more. Citi believes that this potential sale may be the first step for LEGENDHOLDING to divest non-core investments and transform into a more technology-focused holding company; if the deal materializes, it is expected to narrow the bank's estimated NAV discount for LEGENDHOLDING of as much as about 75%. In the first half of this year, LEGENDHOLDING achieved revenue of RMB 362.935 billion, up 29% year on year, mainly benefiting from significant revenue growth at its LENOVO GROUP and Levima Advanced Materials Corporation; net profit attributable to shareholders was RMB 2.230 billion, up 219% year on year, driven by a recovery in the value of the investment portfolio in the industrial incubation and investment segment. SDIC Securities said the company's core assets are operating better and profitability from industrial investment is recovering. LENOVO GROUP's ISG profitability improvement, Levima Advanced Materials Corporation's new capacity deployment, and the turnaround of the industrial incubation and investment segment jointly supported earnings growth.