Lenovo 0992

Re: Lenovo 0992

Postby winston » Mon Jul 04, 2016 12:59 pm

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Lenovo: So Much Debt, CLSA U-Turns To Sell

By Shuli Ren

CLSA has stood by Lenovo (992.Hong Kong) in the past even as other sell-side analysts from Maybank to Morgan Stanley questioned the smartphone and PC maker’s operations. But analyst Nicolas Baratte threw in the towel today, downgrading this stock from Buy to Sell.

Baratte wrote:

This analyst has been horribly wrong on the stock, focusing on the turnaround of the mobile division, which is becoming in our opinion more difficult to unlikely as multiple strategic mistakes pile up…

Smartphone volume in China collapsed by -80% over two years due to two astonishing mistakes in our opinion:
(1) the wrong product mix in 2014- 2015 as demand migrated to 4G &
(2) wrong distribution channels in 2016 as Chinese telco subsidies again accelerate & end the migration to 4G.

That Lenovo is not selling smartphones well should not be news to this blog’s readers. What I find interesting in the report is that CLSA concluded investors are now terribly worried about Lenovo’s balance sheet.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... s-to-sell/
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Re: Lenovo 0992

Postby winston » Fri Jul 08, 2016 7:58 am

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Lenovo to focus on smartphones

by Watson Tan

Lenovo Group (0992) chairman Yang Yuanqing said the company will focus on the mobile phone business in the next one or two years with an aim to be the"mobile market winner"in the mainland.

As for poor sales of personal computers and mobile phones in the past financial year, Yang said the strategic direction was correct, but the implementation was not easy.

The world's leading PC maker saw sales volume of PCs fall by 6 percent and that of smartphones slide by 13 percent for the year ended March 2016, resulting in a net loss of almost HK$1 billion.

It would take time for the company to adjust after the acquisition of Motorola, the handset producer, which was two years ago, and build up the mobile business, he added, and thus Lenovo should be reckoned as a new entrant to the smartphone market.

He asked shareholders to be patient in that it also took three to four years to gain market share after the company purchased the PC business from IBM.

Solely developing the PC business would only make things worse, he said, and smartphones would be an important pillar for the company to develop in the internet age.

Yang may personally purchase company shares to show confidence in the company seeing that small shareholders were dissatisfied with the depressed share price. However, the company has no plan to repurchase stocks for now, said chief financial officer Wong Wai-ming.

The firm generates 20 percent of its sales from Europe, but Wong said the company has tools to hedge against the exchange rate volatility arising from Brexit.

Source: The Standard
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Re: Lenovo 0992

Postby winston » Thu Jul 21, 2016 5:34 am

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A rebound by Lenovo (992) continued, it closing 3.1 percent higher at HK$5.21.

It may launch the AR game with iDreamSky.

It may test the HK$5.70 resistance level in the coming weeks.

Source: Dr Check, The Standard
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Re: Lenovo 0992

Postby winston » Fri Aug 19, 2016 11:21 am

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Lenovo: Selling Off Assets To Keep Mobile Afloat? Nomura Downgrade

By Shuli Ren

Lenovo Group‘s (992.Hong Kong/LNVGY) poor-quality second-quarter earnings beat is coming back to bite today.

Lenovo tumbled 4% this morning, wiping out yesterday’s 2.2% gain, as investors chew through its earnings. This blog discussed yesterday that Lenovo’s net profit of 173 million Hong Kong dollars was well above the $111 million seen the street, only because of a disposal gain of 132 million Hong Kong dollars.

Its operating expenses came in at $1.4 billion, 8% above consensus. For details, see “Lenovo FYQ1 Beat, But Profitability Remains A Question Mark“.

Lenovo now expects its loss-making mobile business to return to profit in the second-half of fiscal year 2017.

Why spinning the wheel so hard? Nomura Securities thinks Lenovo is better-off writing down the Motorola purchase altogether. Analyst Leping Huang downgraded this stock to Neutral with a new price target of 6 Hong Kong dollars. Huang wrote:

From its 1QFY17 results, we note Lenovo is starting to liquidate its property assets to support its smartphone turnaround strategy in listco. We think this is a challenging path compared with a smartphone asset write-off or privatization, as we discussed in our previous report.

Although we still think Lenovo’s core value as a No.1 PC vendor and a global IT product distribution network remains intact, we do not see many near-term catalysts for it to improve its fundamental and recover to its PC/server intrinsic value (HKD8.0/share), due to continuous losses in smartphone in coming quarters.

As a result, we downgrade Lenovo to Neutral and cut our TP to HKD6, based on a SoTP (HKD8.0 for PC/server – HKD2.0 deficit for smartphone).

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... downgrade/
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Re: Lenovo 0992

Postby winston » Tue Mar 21, 2017 2:12 pm

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Feb 23, 2016

<Research Report>UBS Downgrades LENOVO GROUP to Sell with Target Cut to $3.6

UBS, in its research report, downgraded LENOVO GROUP (00992.HK) to Sell from Neutral with target price cut from $5.5 to $3.6.

The broker believed that investors were overly optimistic about the profit turnaround of the group's mobile phone business and data center and too confident in its personal computer business.

Its valuation enjoyed premium over its peers, reflecting investors have not paid attention to the above factors.

The group's mobile phone business continued to report loss in the third quarter, mainly affected by the promotion costs of new product.

Meanwhile, it planned to enhance the brand positioning and launch more high-end products in China; coupled with shortage of spare parts, cost increased.

Source; AAStocks Financial News
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Re: Lenovo 0992

Postby winston » Fri May 26, 2017 7:45 am

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Lenovo Back in the Black

By Daniel Shane

Lenovo (992.HK) is back in the black! After a torrid couple of years for the world’s biggest computer maker, Hong Kong-listed Lenovo’s finally got the reboot it’s been waiting for. Sort of.

In its latest financial year the Beijing-based giant saw profits reach USD535 million, compared to a loss of USD128 million a year ago. That wasn’t quite the windfall analysts were hoping for, but investors buzzed the stock 4% higher anyhow in Hong Kong trading Thursday.

Expectations are evidently low for this company. Despite the return to profit, overall revenues fell 4% and PC shipments slipped 1%.

Lenovo struggled to get to grips with big shifts in tech over the last few years, such as the move away from the desktop to mobile computing. That prompted Lenovo to buy the Motorola handset business from Google (GOOGL) in a huge deal three years back that’s more or less been an unmitigated disaster.

Lenovo also faces more competition in the desktop business going forward, with Shenzhen-based Huawei announcing this week it would start making premium laptops.

In the last two years Lenovo’s stock has lost more than half of its market value, as the firm's been outshone by exciting new tech upstarts elsewhere.

Most analysts think the stock isn’t worth the effort, given the PC business is in structural decline. Only 10% rate it a Buy. The average price target is HKD4.75, which suggests the stock is more than 5% overvalued.

At less than 13 times next 12 months’ earnings, the stock is a shade cheaper than its historical average.

Source: Barron's Asia

http://www.barrons.com/articles/lenovo- ... 1495701635
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Re: Lenovo 0992

Postby winston » Mon Nov 12, 2018 10:21 am

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LENOVO GROUP(992)
Analysis:

Thanks to the demand from the commercial refresh, for the six months ended September 30, 2018, the revenue of PC and Smart Device Business rose by 18% to USD 18.783 billion.

Due to the product mix improvement, its pre-tax profit margin increased by 0.8% to 5%.

For the Business Center, the revenue reached USD 3.173 billion, up 63% YoY. Its pre-tax profit for six months has reduced significantly by USD 152 million to USD 123 million.

According to IDC, the Group is the supplier that grows the fastest in the data center business, ranked 4th in Cloud Infrastructure worldwide. It is believed that the Group will mainly focus on the business in the future.

For Mobile Business, the Group continued to reduce expenditure, simplify its product portfolio and focus on the Latin American and North American markets.

The revenue of Mobile B usiness for six months was USD 3.247 billion, down 15% YoY. Meanwhile, it recorded a pre-tax loss of USD 146 million, greatly reducing by USD 191 million.

Strategy:
Buy-in Price: $5.50, Target Price: $7.00, Cut Loss Price: $5.00

Source: Phillips
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Re: Lenovo 0992

Postby winston » Thu Feb 21, 2019 2:17 pm

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<Research Report>JPM: LENOVO GROUP Logs Strong Beat in 3QFY19, 1st Mobile Breakeven after Motorola Acquisition

JPMorgan said in its report that LENOVO GROUP (00992.HK) reported strong beat across all items in 3QFY19 results, where pre-tax income came in 16% and 24% ahead of the broker's estimate and street forecast.

GM and OPM also topped expectations attributable to higher PC margins and quicker-than-expected turnaround in mobile business.

The broker retained Overweight on LENOVO GROUP at the target price $7, adding that the mobile business delivered the first breakeven since Motorola acquisition owing to its stringent cost control and strategic focus on LATAM and North America markets.

Source: AAStocks Financial News
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Re: Lenovo 0992

Postby winston » Thu Feb 21, 2019 2:19 pm

<Result Ann>LENOVO GROUP (00992.HK) Turns Into 3QFY19 US$233M Profit

LENOVO GROUP (00992.HK) announced in 3QFY19 results that profit attributable to equity holders amounted to US$233 million, a significant turnaround from a loss of US$289 million in the year-ago fiscal quarter.

Basic EPS equaled US1.96 cents.

During the nine months ended December 31, 2018, profit attributable to equity holders amounted to US$478 million, as compared with a loss of US$222 million in the year-ago fiscal quarter.

Basic EPS equaled US4.02 cents.

Source: AAStocks Financial News
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Re: Lenovo 0992

Postby winston » Fri Feb 22, 2019 3:04 pm

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<Research Report>Nomura Upgrades LENOVO GROUP (00992.HK) to Buy with Target Lifted to $8.2

Nomura previewed in its report that the earnings risks for LENOVO GROUP (00992.HK) are largely over in light of its success in smartphone business transformation, for which the stock was upgraded to Buy from Neutral.

The broker also lifted the target price on LENOVO GROUP to $8.2 from $5.6 owing to its attractive risk/ reward profile from the current valuation and expected profitability upsides.

Source: AAStocks Financial News
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