Lenovo 0992

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DJ MARKET TALK:Lenovo Falls 1.5% Despite Denying Guidance Cut Report

0950 [Dow Jones] Lenovo (0992.HK) is down 1.5% at NT$6.67, extending Thursday's 9.4% losses despite the PC maker denying reports that it has cut shipment guidance for the fiscal year ending March 2013.

Nomura, which keeps the stock at Neutral with a target price of HK$7.40, says, "we see limited near-term catalysts given its stretched valuation, rising competition in China's smartphone market and likely muted PC demand before the official launch of Windows 8."

The Chinese company said late Thursday: "Lenovo has issued no new guidance to suppliers or manufacturing partners regarding its growth estimates, and we continue to be confident that we will outgrow the market worldwide."


Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo Shipment Momentum Well On Track - UBS

1207 [Dow Jones] STOCK CALL: UBS says, in an investor conference call it arranged for Lenovo (0992.HK) late Thursday, the PC maker says "shipment momentum is well on the track", driven by demand from lower-tier Chinese cities and eastern Europe.

The company reiterates its target to grow PC shipments by 15%-20% for the current fiscal year, although 'order visibility' is limited beyond September citing global economic slowdown.

UBS keeps Lenovo at Buy with a 12-month target price of HK$8.00, adding that Lenovo is trading at a low ex-cash P/E 5.7X and a high ROE of 25.3X. The stock is last flat at HK$6.77.


Source: Dow Jones Newswire

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Ellie Chan: LENOVO GROUP (00992) may be pressured to $6.3
2012-06-22

LENOVO GROUP (00992) dipped last by 1.6% to $6.66 even though it clarified that delivery targets remained unchanged.

Ellie Chan, analyst at Shenyin Wanguo Securities (H.K.) Ltd., is not optimistic towards LENOVO GROUP's sales this quarter, as the company had earlier expected summer sales to weaken.

Moreover, the company lacks growth momentum as the prospect of personal computer has shrunk, which put pressure on stock price.

Technically, LENOVO GROUP has under-performed with soaring trading volume amid market retreat. The stock may point lower to recent-low at $6.3.

Source: AAStocks Financial News

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LENOVO GROUP (00992) maintained at Overweight by MS as macro hiccups not to alter structural positives
2012-06-22

Morgan Stanley stated that LENOVO GROUP (00992)'s management has no intention to change in the company guidance of 15-20% y/y PC shipment growth for 2013 and despite the macroeconomic slowdown, the company was inevitably affected; yet, it does not affect the structural positives.

The bank maintained the Overweight rating on the company.

Source: AAStocks Financial News

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LENOVO GROUP (00992) maintained Overweight, TP cut to HK$7.58 by HSBC
2012-06-22

HSBC Global Research stated that LENOVO GROUP (00992)'s management has reiterated its 15-20% annual growth target; the summer sales of the company is likely to be weaker than usual and the margin expansion of the company is expected to continue given the disciplined expense control.

The bank has lowered its earnings forecast for 2013 by 7% given the recent weakness in demand.

The bank has also held its Overweight rating on the company, with target price cut from HK$7.86 to HK$7.58.


Source: AAStocks Financial News

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DJ MARKET TALK: HSBC Trims Lenovo Target But Still Overweight

0825 [Dow Jones] STOCK CALL: HSBC says recent data continues to support that Lenovo (0992.HK) is gaining further market share, with IDC's number suggesting that the Chinese market should grow by about 5% on-year in the June quarter, while Lenovo could post 15% revenue growth, given its greater exposure to lower-tier cities and robust corporate demand.

It adds, Lenovo also seems to be growing faster than the markets in the U.S. and Europe on the back of share gains at the consumer level, and HSBC continues to forecast 1QFY13 revenue growth of 10% on-quarter.

Still, HSBC says the September quarter "could be the first time in a while that company could no longer surpass its guidance;" it lowers Lenovo's FY13 earnings forecast by 7% and trims its target price to HK$7.58 vs HK$7.86, derived from net cash of HK$2.15/share and an unchanged 11.5X forward earnings; it keeps the stock at Overweight.

Lenovo's 9.4% slump Thursday was the biggest single-day share-price fall in two years; it ended Friday down 1.3% at HK$6.68.

Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo Off 3.4%; False News, Good Entry - Yuanta

1108 [Dow Jones] Lenovo (0992.HK) is unable to sustain its early rebound to HK$6.73, and is down 3.4% at HK$6.45 on top of its 10.6% fall across Thursday and Friday which came on media reports that it has cut shipment guidance (from 20%-25% on-year growth to 13%-15%) for the fiscal year ending March 2013;

Lenovo denied the reports. Yuanta says Lenovo's guidance has been "assuming global PC market growth at 5%, we target 15%-20% growth," and the management commented that "they see no major changes to this target."

Yuanta adds that it has done supply chain checks and agrees with the management that "the news could just be based on checks with some supply chain vendors that failed to offer an overall picture of Lenovo's business outlook."

The house believes "false news creates good entry" in Lenovo shares.


Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo +0.7%; News Flow "Misleading" - Citigroup

0934 [Dow Jones] Lenovo (0992.HK) is up 0.7% at HK$6.73, staging a rebound after falling 10.6% over the past two sessions on media reports that it has cut shipment guidance (from 20%-25% on-year growth to 13%-15%) for the fiscal year ending March 2013; Lenovo denied the reports.

Citigroup says "the news flow is misleading to investors."

First, Lenovo's full-year PC shipment guidance is +15%-20% on year (Citi estimates 21% on-year shipment growth) and not +20%-25% on year as the media cited;

Second, Lenovo didn't guide down its full-year shipment target and, last, the June quarter looks on track to meet guidance.

"We continue to hold our positive view on Lenovo with a Buy rating and a target price of HK$7.80," Citigroup says.


Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo Bid Down But Share Buyback May Support

0930 [Dow Jones] Lenovo (0992.HK) is backing up its words with action, as the company bought back 4.8 million shares Monday at HK$6.24-HK$6.40 each, for a total of slightly over HK$30 million, according to an exchange filing.

While the amount only accounts for less than 5% of the stock's volume Monday, it's likely taken as a signal from the management that the stock's 15.0% selloff in the past three sessions is unwarranted.

The stock's fall had come on media reports that Lenovo cut shipment guidance for the fiscal year ending March 2013, which was denied by the company.

At pre-open, Lenovo is bid down 0.2% at HK$6.34, but some bargain-hunting may emerge later in the session, especially after the shares repurchase.


Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo +3.2%; Shares Buyback Aids Rebound

1104 [Dow Jones] Lenovo (0992.HK) rebounds 3.2% to HK$6.55 to snap a three-session 15.0% slump; the selloff was triggered by media reports that Lenovo cut its shipment guidance for the FY ending March 2013, which was refuted by the company, and it backs up its words by spending more than HK$30 million Monday to buy back 4.8 million shares, according to an exchange filing.

HK$6.24-HK$6.40, the level at which Lenovo repurchased shares, now looks to form a short-term bottom for the stock. On the supposed shipment guidance cut, Barclays says that "with the Lenovo's financial year only three months old, it would actually be highly unlikely that it would make any adjustment at this time."

The house keeps Lenovo at Overweight with an unchanged target price of HK$8.50.


Source: Dow Jones Newswire