Lenovo 0992

[winston]

vested

LENOVO GROUP 3FQ NP Crumples 22.9% YoY to US$337M

LENOVO GROUP (00992.HK) announced the FY2023/24 third quarter results as of the end of December 2023.

The Group revenue advanced for the third consecutive quarter by 3% YoY or 9% QoQ to US$15.721 billion, which also marked its first YoY quarterly revenue increase in the last one and half years.

Its net profit dropped 22.9% YoY or rose 35% QoQ to US$337 million. EPS was US2.81 cents.

Gross profit margin eroded 0.6 ppts YoY to 16.5%.

The Group is actively developing personalized AI solutions under the Lenovo AI Now solution umbrella.

The total available market of the global PC sector is set to recover to a level structurally higher than the pre-pandemic period in the long term.

The commercial replacement cycle and the trend of premiumization are among the most important catalysts that will help IDG deliver premium-to-market growth, strong average selling prices and sustainable profitability.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

vested

Lenovo Group (992 HK)
3QFY24: Solid Results; Recovery In FY25 Could Be Slower Than Expected

Lenovo’s 3QFY24 results are solid, with a slight beat across all segments on both revenue and profitability.

Growth in FY25 may turn out to be moderate as enterprise clients are delaying purchases in 1H while awaiting more meaningful AI PC launches.

Nevertheless, the AI PC-driven replacement cycle should kick in by 2H24, and the rate of penetration of AI PC in 2025-26 may surprise on the upside which can potentially bolster earnings growth during the period.

Maintain BUY and cut target price to HK$10.50.

Source: UOBKH

https://research.uobkayhian.com/content ... 3755f3065b

[winston]

vested

Lenovo pulls back in third quarter

Strong growth in markets out of China.

The results show demand for personal computers, while coming back slowly, is returning to a more positive trajectory.

The business should improve, though a migration away from traditional servers toward higher-end setups for training and developing AI may pressure profitability in the short term.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... rd-quarter

[winston]

vested

3QFY3/24 declined 23% y-o-y; expect hardware growth to be sluggish in 2024

3QFY3/24 revenue increased slightly by 3.0% y-o-y, due to a slow recovery in the PC end-market demand

Net profit fell 23% y-o-y due to continuous operational loss in the server business

Cut earnings forecast for FY3/24F and FY3/25F by 18%/23% in anticipation of a slower-than-expected PC shipment growth

Maintain HOLD; lower TP of HK$8.4 based on a 10.5x FY3/25F PE

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18353

[winston]

not vested

LENOVO GROUP(992)

Analysis：

Its revenue advanced for the third consecutive quarter by 9 percent quarter-on-quarter to US$15.7 billion, while profit attributable to equity holders increased by 35 percent sequentially.

At the CES 2024, the Group showcased a full lineup of more than 40 new AI-powered devices and solutions, furthering its vision of AI for All.

It is committed to accelerating AI innovations around its devices to create differentiation, extending beyond hardware to components and software including Lenovo's AI Core Chip, Yoga Creator Zone and AI Now solution.

Its Infrastructure Solutions Group (ISG) is poised to benefit from one of the most important trends in the infrastructure sector - Hybrid AI.

Its diversified and balanced exposure to public and private cloud made ISG uniquely positioned to deliver the vision of “AI for All”.

Its Solutions & Services Group (SSG) will launch new AI native services and AI-embedded functions in the areas of digital workplace, hybrid cloud, and sustainability solutions, with an aim to accommodate enterprise customers` growing demand for AI technologies.

Concurrently, its SSG will focus on safeguarding its core business with high value-added support services across both PC and infrastructure segments. (I do not hold t he above stock)

Strategy：
Buy ! Price : HK$9.6; Target Price : HK$10.7; Stop Loss : HK$9.1

Source: Phillips