not vested
LENOVO GROUP(992)
Analysis:
During the three months ended December 31, 2021, Lenovo Group(0992)set new performance records in revenue and profit.
Its revenue advanced 17 percent year-on-year to a new milestone of US$20.1 billion, and net income margin reached 3.2 percent, expanding year-on-year for seven straight quarters.
The Intelligent Devices Group (IDG), consisting of the PC, tablet, smartphone, and other smart device businesses, posted a stellar 21 percent annual profit growth and revenue growth of 16 percent.
Its operating margin expanded 31 basis points ye! ar-on-year to a record 7.7 percent.
Empowered by a strong infrastructure upgrade cycle from cloud and enterprise customers, its operating profit increased by US$28 million year-on-year to US$17 million, on revenue growth of 19 percent to US$1.9 billion.
Benefiting from opportunities arising from hybrid working model and commercial recovery, Solutions and Services Group (SSG) revenue grew 25 percent year-on-year to US$1.5 billion.
Operating profit surged by 44 percent year-on-year to US$332 million.
From a mid to long-term perspective, service business is a structural growth engine for the Lenovo Group and will play an increasingly important role in driving the recurring revenue and profitability amid these megatrends.
Strategy:
Buy-in Price: $8.48, Target Price: $9.44, Cut Loss Price: $8.01
Source: Phillips