Lyonnais advises Legend shareholders to keep China Digital shares

Credit Lyonnais suggested in its report that the shareholders of Legend Holdings (0992) should keep the shares of China Digital (0861) to replace the cash as dividend, for the annual increase of China Digital in long term could remain above 25%, which belonged to attractive level if counted as the price of HK$3.34 each.

The fund house pointed out that the annual increase of Legend after spinning off China Digital could reach as high as 40% and the fund house rated the target price of Legend at HK$7, 40 times as the price/earnings ratio of next year.

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