[I-bank focus]CS raises Legend Holdings (03396) to HK$26.1

    Credit Suisse raised its target price for Legend Holdings (03396) to HK$26.1 from HK$25.9, and maintained its "neutral" rating.
   Legend made an announcement on the reorganisation of its 31.4%-controlled associate Lakala - the A-share listed company Tibet Tourism (600749 SS) will acquire a 100% stake of Lakala, upon CSRC approval. Previously, Credit Suisse was expecting Lakala to launch an IPO in the upcoming Strategic Emerging Board, but it believes the current alternative listing plan provides Lakala a faster way to access the capital market in order to fulfil its future business development, as well as achieve value crystallisation for Legend.
  Assuming the market reacts positively and assigning 40x P/E/7x P/S, Credit Suisse expects a 63% improvement in Lakala's valuation to lift Legend's NAV by HK$0.6, with a 4% NAV contribution. 
 Although Credit Suisse believes Lakala's listing is a shortterm positive catalyst for Legend, the material impact on Legend may take a longer time. It slightly raises its TP to HK$26.1 due to Lakala's value creation being partially offset by CS's latest trimming of Lenovo's (00992) TP.