Achieve the best half-year performance in history. In the first half of 2021, the company realized income of 228.565 billion yuan (the same below), an increase of 24% over the same period last year, and the ninth consecutive reporting period since 2017. the net profit attributable to equity holders was 4.691 billion yuan, an increase of 636% over the same period last year. Basic profit per share was 2.01 yuan, an increase of 64.4% over the same period last year
The business model is clear and the strategic promotion is effective and good. The company is a diversified investment holding company with a business model of "strategic investment + financial investment". On the one hand, it firmly tamps the basic plate of business operation to ensure the stability and improvement of the pillar assets business, and on the other hand, it takes the initiative to adjust its business strategy. seize the opportunity of high-quality development of China's economy, actively promote the layout in the field of science and technology, and most of the invested enterprises achieved good performance growth in the first half of this year.
In terms of strategic investment plate, 1) the companies in the IT sector mainly carry out IT business through subsidiary Lenovo Group Limited (00992.HK), directly and indirectly hold 33.4% of Lenovo Group Limited. Due to the vigorous development of global digitization and intelligence, as of the middle of this year. Lenovo Group Limited's three major businesses: smart device Business (IDG), Infrastructure Solutions Business (ISG) and solution Services Business (SSG) have all achieved record performance. 2) the year-on-year turnaround of the innovative consumption and service sector is mainly due to the completion of the sale of all shares of car rental in China; 3) the year-on-year turnround of the agricultural and food sector is mainly due to the profit growth of the fruit business, the narrowing of losses in the animal protein business and the good gains from the sale of part of the shares held by the participating companies. 4) the net profit of the advanced manufacturing and professional services sector increased by 108% compared with the same period last year, mainly due to the performance growth of Lianhong Xinke and the listing of China Eastern Airlines Logistics.
In terms of financial investment sector, the company is the forerunner of China's asset management industry, and its Lenovo Star and Junlian Capital continue to contribute better profit returns. The strategic investment and financial investment fund platform continues to promote capital operation. By the middle of this year, a total of 12 invested enterprises have completed listing, and at least 11 enterprises are promoting the listing process.
Investment advice: the company achieved the best half-year performance in history this year, due to seizing the opportunity of high-quality development of China's economy, and most of the invested enterprises achieved good performance growth. Bloomberg's average target price is 16.80 Hong Kong dollars, corresponding to the potential increase of 33.97%, recommended to buy.