What is the relationship between Legend Holdings and Lenovo Group? Is it the company?

The former is the parent company of the latter.

In addition to the latter's PC, mobile phone and server, its business also includes strategic investment businesses such as agriculture, finance, modern services, chemicals and new materials, as well as financial investment businesses such as angel investment, venture capital and equity investment. At the same time, the former consolidated the latter's statements in its financial report, and the latter accounted for 94% of its total income.

Usually, when the parent company and its subsidiary are listed at the same time, investors will give the subsidiary a higher valuation, because the subsidiary may be more focused in business and have higher management efficiency, which often means a better return on investment.

However, this situation temporarily presents the opposite relationship between Legend Holdings and Lenovo Group: at present, the market value of Legend Holdings is 654.38+0.3 billion US dollars, while that of Lenovo Group is 654.38+0.48 billion US dollars. The former has a P/E ratio of 654.38+09.4 times, while the latter is less than 654.38+08 times.

For a long time to come, the performance of the two companies will have a strong positive correlation, because other strategic businesses of Legend Holdings are still in their infancy, and Lenovo Group plays a major role in promoting their performance.

But in the long run, Legend Holdings may gradually get rid of the influence of Lenovo Group. The growing new strategic business may bring higher income and profit growth, while the financial investment business will provide higher flexibility and imagination, but it may also mean higher risks, thus depressing the valuation.