Lenovo 0992

[winston]

DJ MARKET TALK: Lenovo Rises For 2nd Straight Day; Buyback Continues

1105 [Dow Jones] Lenovo (0992.HK) appears is winning the battle with short sellers, at least for the time being.

The stock is up 1.6% at HK$5.90, stringing together a two-day winning streak, the first time that happened since June 21, despite it's the most heavily targeted stock by Hong Kong short sellers Tuesday, with HK$251.45 million worth of shorts.

Lenovo continues to buy back shares, last buying 5.48 million shares Tuesday at HK$5.69-HK$5.85; according to Dow Jones Newswires calculation, it has repurchased a total of 41.84 million share in 10 separate purchases since June 25, worth roughly HK$250 million--while only 0.4% of its market cap, hints at the company's confidence in prospects.

Lenovo is the 9th most heavily traded stock in Hong Kong.


Source: Dow Jones Newswire

[winston]

vested

DJ MARKET TALK: Lenovo May Pause; PC Market Contracts In 2Q

0809 [Dow Jones] Lenovo (0992.HK) may pause after rebounding 4.6% over the past two sessions, although news that global growth stalled in 2Q for PC shipments shouldn't be taken as a major surprise.

Industry researchers Gartner and IDC said shipments declined 0.1% last quarter, marking the seventh consecutive quarter of flat or single-digit growth, underscoring weak demand amid economic uncertainties.

Still, in line with the recent trend, Lenovo continued its quest to become the top PC maker this year, growing its world-wide share at the expense of both H-P (Gartner: 14.9%; IDC: 15.5%) and Dell, to become the second-largest computer maker with 14.7% of the market by Gartner's data, or 14.9% by IDC's. Lenovo rebounded for a second straight session to close Wednesday +1.5% at HK$5.90, but remains 21.0% lower vs a June 20 close due to concerns of a slowing PC market.


Source: Dow Jones Newswire

[winston]

vested

DJ MARKET TALK: Lenovo +1.7%; Meaningful 6-12 Month Upside -JPM

1121 [Dow Jones] Lenovo (0992.HK) bucks the prevailing broad-market weakness, rising 1.7% to HK$6.00, adding to its two-session 4.6% rebound and shrugging off news that global growth stalled in 2Q for PC shipments, which perhaps shouldn't be taken as a major surprise anyway, given that Lenovo's recent slump from a June 20 close of HK$7.47 is mainly due to concerns of a slowing PC market.

JPMorgan says the structural growth thesis for Lenovo remains intact, while cyclical factors (especially China and emerging market PC growth) "are indeed close to the bottom, providing a good entry point for the stock."

The house tips "meaningful upside" in a 6- to 12-month horizon for Lenovo as the cyclical factors recover, and keeps the stock Overweight with a target price of HK$8.10.


Source: Dow Jones Newswire

[winston]

Vested

China's Lenovo inches closer to a global tech title by Lee Chyen Yee

HONG KONG (Reuters) - Lenovo Group Ltd is on track to overtake Hewlett-Packard Co as the world's biggest PC maker, by sales as soon as this year, making it the first Chinese company to grab the top spot globally in a technology sector.

The ThinkPad maker's rise highlights the advance of China's technology firms on the world stage in recent years thanks to a combination of aggressive pricing, overseas acquisitions and their taking advantage of a fast-growing home market.

Analysts, however, also warn that Lenovo's rapid gains in market share have come at the expense of profit margins, while the company faces slowing growth in the market for personal computers and tough rivals in the tablet PC space.

"It's just a matter of time before Lenovo becomes No. 1 and it won't be surprising at all if it happens later this year," said Frederick Wong, executive director at Avant Capital Management (Hong Kong) Ltd, which owns shares in Lenovo.

He added, however, that competition in the tablet sector and a weak PC market outlook could put pressure on Lenovo.

Lenovo, which became the world's No. 2 PC vendor in the third quarter of 2011, had a 14.9 percent global market share in the April-June quarter this year, a mere 0.6 percentage point away from HP's 15.5 percent, according to research firm IDC's latest data. Figures from industry tracker Gartner show an even narrower gap, with Lenovo just 0.2 percentage point from HP.

SWITCHING LANES

Lenovo's rise has been helped by its purchase of Germany's Medion and a joint venture with Japan's NEC Corp last year, as well as its acquisition of IBM Corp's PC business in 2005.

Investors have rewarded Lenovo for its market share gains, sending its stock up by around 16 percent this year and outpacing rivals HP, third-ranked Dell Inc and No. 4 Acer Inc, whose stocks have dropped over the same period.

Lenovo currently trades at a multiple of 12.5 times forward earnings, the second-highest among the top-five PC makers and well above the 4.6 times multiple for HP, Thomson Reuters Starmine data showed.

But profit margins have suffered. Lenovo had a 1.4 percent operating margin in the latest quarter, lower than HP's 7.4 percent and Dell's 6.2 percent, the data showed.

"HP, Dell and Acer have switched lanes in the PC race and passed the baton to Lenovo in terms of focusing on sales rather than margins," said Dickie Chang, an analyst at IDC in Hong Kong.

Another risk is slowing growth in the PC market as the global economy, including Lenovo's home turf and stronghold China, eases.

China accounts for about 42 percent of Lenovo's total revenue, with the bulk of that coming from PC sales.

Global PC shipment growth was largely flat in the second quarter, marking the seventh straight quarter of low 0 to 5 percent growth for the industry.

"We remain positive on Lenovo's market share expansion, but the absolute growth is nevertheless being negatively impacted by a slower market," Jefferies said in a report. Jefferies has an "underperform" rating on Lenovo with a price target of HK$5.70.

Overall PC demand could pick up this year with the launch of Windows 8, though the catch is that competition in the sector for tablet PCs -- not Lenovo's strongest area -- will heat up because the operating system is designed to run on laptops and tablets.

Mizuho analyst Charles Park forecasts the PC market will grow by just 3 percent this year.

Lenovo's tablets, its LePads, will also face competition from new products, including the next versions of Amazon.com Inc's Kindle Fire and Apple Inc's iPad, as well as Google Inc's Nexus 7 and Microsoft Corp's Surface.

Source: Reuters

http://in.reuters.com/article/2012/07/1 ... HM20120715

[winston]

vested

TOL:-

Windows 8 coming out in October.

Christmas and CNY shopping is after that.

[winston]

vested

LENOVO GROUP (00992) maintained Buy, TP lowered to $7.5 by BofAML

In light of the increase in LENOVO GROUP (00992)'s global market share in notebook, Lenovo notebook sales is expected to beat estimate in the interim result to be published in August, Bank of America Merrill Lynch said in a report, raising its sales growth forecast for the first quarter in 2013 from 7% to 10%.

Lenovo notebook deliveries soared 10% in the second quarter from a quarter back and jumped 25% from a year ago, while global market recorded negative growth in deliveries, BofAML cited international research institute IDC data.

The bank fine-tuned first-quarter profit margin of LENOVO GROUP from 1% to 2.3% after the computer manufacturer outperformed its peers and the bank's projection.

BofAML also forecast Lenovo to report 6% quarterly sales growth in the second quarter of 2013 and outpace its peers in sales performance, despite macro economic uncertainty and weakened demand in China.

Sales growth in the third quarter in 2013 would slow to 4% after the launch of WINDOWS 8 in October.

BofAML cut LENOVO GROUP (00992) target price from $8.1 to $7.5 with a Buy rating.


Source: AAStocks Financial News

[winston]

vested

DJ MARKET TALK: JPM Adds Lenovo To Asia Analyst Focus List

1314 [Dow Jones] JPMorgan adds Lenovo (0992.HK) to its Asia Analyst Focus list, as it's gaining confidence that China PC market will return to double-digit unit growth in 4Q this year, after 3 quarters of 0%-5% on-year growth, thanks to two major PC brands in China toning up recently; affordable broadband becoming reality; 4Q11 base is low and availability of new products (Win 8 + Ultrabooks).

The house adds, Lenovo is also executing well on all fronts and the company will likely overtake HPQ in next 2 quarters to become the No. 1 in PC segment globally;

It expects Lenovo's 2Q margin to improve on-year and beat consensus estimates, and likes the PC+ strategy in China (success in smartphones and servers already coming through).

JPM's March-2013 target price of HK$8.10 for Lenovo is based on 14X FY14 fully diluted earnings. The stock is up 3.5% at HK$5.57.

source: Dow Jones Newswire
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[winston]

vested

Sze Chun Wai sets LENOVO GROUP (00992)'s TP at HK$7

LENOVO GROUP (00992) and EMC, a data storage services provider, entered into a partnership agreement to collaborate in the realm of server technology and to form a joint venture.

EMC ranks 152th in Fortune 500 with 2011 revenue reaching US$20 billion. It is listed on the New York Stock Exchange and its market value reached US$55 billion. It hired over 53,000 employees.

LENOVO GROUP will hold 51% interests in the joint venture and will sell EMC's internet storage services products to Chinese clients. This cooperation will help EMC widen its distribution network for its data storage products in China and other emerging markets, and will also bring synergies to LENOVO GROUP.

LENOVO GROUP's global market share reached 14.9% in the second quarter. The tablet jointly developed with NEC also contributed to the group's profit. Sze is upbeat about the results of LENOVO GROUP for the second half of 2012.

He advised investors to buy LENOVO GROUP shares at the spot price and set the target price at HK$7.

Source: AAStocks Financial News

[winston]

vested

DJ MARKET TALK: Lenovo Retreats; EMC Deal Has Strategic Purpose - CS

1531 [Dow Jones] Lenovo (0992.HK) retreats 1.2% to HK$5.68 after rallying 6.9% Wednesday on its deal to team up with data storage provider EMC.

Volume is again heavy at HK$501.9 million, making the stock the 6th most heavily traded in Hong Kong.

Credit Suisse says Lenovo's effort in strengthening its server portfolio is often overlooked because of its strength in PCs; its partnership with EMC "is more about its vision to become a technology solutions provider than simply a PC vendor."

While it doesn't expect EPS accretion this year, "(we) value its strategic purpose," CS says.

It keeps Lenovo at Outperform with an unchanged target price of HK$7.70, but adds that macro concerns have weighed on Lenovo shares, rather than any fundamental issue.

"For this reason, we would wait for these to settle and earnings hurdles to be lowered before revisiting the name."


Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Lenovo Likely Bottomed Out At HK$5.35

0822 [Dow Jones] Lenovo (0992.HK) appears to have likely reached a share-price trough at HK$5.35 Thursday, which marked a 30.6% correction from its 52-week high of HK$7.71 on April 17, and likely to have adequately priced-in concerns about a slowdown in the PC market.

The stock dipped 0.5% to end Thursday at HK$5.72 after rebounding 6.9% Wednesday on news of teaming up with data storage provider EMC.

HSBC says the strategic alliance with EMC bodes well for Lenovo's server business, which is highly profitable and Lenovo has limited exposure; with 35% of market cap in net cash while "recent expectation reset overdone," HSBC reiterates its Overweight call on Lenovo with an unchanged target price of HK$7.58.

Source: Dow Jones Newswire