Lenovo 0992

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DJ MARKET TALK: Lenovo +0.7%; Macquarie Stays Positive

1018 [Dow Jones] Lenovo (0992.HK) defies broad market weakness, rising 0.7% to HK$5.76 and more medium-term upside is likely, as the stock appears to have likely reached a share-price trough at HK$5.35 Wednesday, which marked a 30.6% correction from its 52-week high of HK$7.71 on April 17, and is likely to have adequately priced-in concerns about a slowdown in the PC market.

Macquarie expects Lenovo will report 1QFY13 (ended June) PC shipments in-line with consensus estimates, and believes the company will continue to see operating margin expansion driven by scale in 1QFY13, while its 2QFY13 outlook remains solid as it continues to gain share across geographies.

"We believe the company's market share and margin expansion story remains intact and will continue to drive earnings over the medium term,"

Macquarie says and keeps Lenovo at Outperform with a HK$7.80 target.


Source: Dow Jones Newswire

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DJ MARKET TALK: Lenovo +1.2%; 1Q Results Likely Catalyat -GuocoCap

1049 [Dow Jones] Lenovo (0992.HK) is up 1.2% at HK$5.94, lagging the HSI's 2.0% rally, but appears is only taking a little bit of breather, after its sharp rebound from a 2012 intraday low of HK$5.35 on Aug. 1.

GuocoCapital says that Lenovo is trading at 12.7X FY13 P/E, valuation "looks excessive" but it thinks Lenovo "can sustain its premium valuation" as long as its global market share continues to increase.

Assuming 15.6% on-year growth in revenue and operating margin of 2.2%, GC forecasts Lenovo's FY13 EPS to reach US$0.059 (HK$0.46) that implies an EPS growth of 29%.

It keeps Lenovo at Buy with a 6-month target price of HK$7.40, roughly equivalent to 16X FY13 earnings or the high-end of historical forward P/E band.

"A strong quarterly results for 1QFY13 (due on August 16th) with better-than-expected gross profit margin can be a potential share price catalyst."

Source: Dow Jones Newswire

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LENOVO GROUP (00992) develops US educational, governmental mkt

From Bloomberg, LENOVO GROUP (00992) announced it would put in efforts to develop the US educational and governmental markets , to further get some market share from Dell.

Thomas Looney, general manager of North America at LENOVO, expects the relevant businesses can grow by 20% each year.

He pointed out the group would develop tablet products according to the requirements of the US government.

Source: AAStocks Financial News

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DJ Nvidia Partnering With Lenovo on Windows RT Device - Sources

Nvidia Corp. (NVDA) will supply chips to Lenovo Group Ltd. (LNVGY, 0992.HK) on a device running Microsoft Corp.'s (MSFT) Windows RT operating system, people familiar with the matter said, giving Nvidia another partner in its push into mobile devices.

The newest version of Windows, to be released in October, will be the first to work with chips based on the ARM Holdings PLC (ARMH, ARM.LN) architecture, not just those from traditional partners Intel Corp. (INTC) and Advanced Micro Devices Inc. (AMD). Microsoft and system makers are turning to makers of ARM-based chips--used in most smartphones and tablets--to make inroads against Apple Inc.'s (AAPL) iPad, which continues to dominate the market.

Nvidia is one of the three initial ARM licensees working on Windows devices. So far, Asustek Computer Inc. (ASUUY, 2357.TW) and Microsoft have announced tablets using Nvidia's Tegra mobile processor.

People familiar with the matter said Chinese computer giant Lenovo, which recently became the world's second biggest PC maker by shipments, is also working on a Windows RT device with Nvidia.

One of these people said the companies are developing a convertible notebook, with a keyboard that flips around to turn the product into a tablet. Lenovo unveiled a similar device earlier this year, dubbed the IdeaPad Yoga, that will run Windows 8 with an Intel chip.

Lenovo has been working to introduce other tablets to address the fast-growing market. Late Wednesday, the company announced a business user-centric tablet during an event in New York. The device, dubbed the ThinkPad Tablet 2, also runs Windows 8 and uses an Intel chip.

Dilip Bhatia, general manager of Lenovo's ThinkPad business, said in an interview at the event that along with the Intel-based tablet, Lenovo also plans to introduce a Windows RT device when Windows hits the market. He declined to provide details about the product.

Nvidia, meanwhile, earlier Thursday reported record revenue for its mobile chip, dubbed Tegra. During the company's earnings call with analysts, Chief Executive Jen-Hsun Huang noted that Nvidia has seen particular traction with tablets and that it's working with three partners for Windows RT devices.

He mentioned Asus and Microsoft but didn't provide details about the third partner.

"We're making really good progress in making our way into the fastest-growing segment of the computer industry," he said.


Source: Dow Jones Newswire

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LENOVO GROUP (00992) upgraded to OP with TP set at HK$7.75 by Stanchart

Global demand for personal computers climbed, as customers tend to upgrade their computers after the launch of Windows8, said Standard Chartered, which expects the personal computer unit of LENOVO GROUP (00992) to fare very well in the next six months.

LENOVO GROUP's market share now reaches 14.9%, approaching HP's market share of 15.5%.

Stock price of LENOVO GROUP has dropped 20% from the year high and thus Standard Chartered advised investors to buy.

LENOVO GROUP was upgraded to Outperform from In-line with target set at HK$7.75.

Source: AAStocks Financial News

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DJ MARKET TALK: Lenovo Likely To Rise On Above-View 1Q Results

0811 [Dow Jones] Lenovo (0992.HK) is likely to rise, after reporting net profit for its fiscal 1Q ended June jumped 30% on year to US$141.4 million, beating the average US$133.8 million forecast of nine analysts surveyed by Thomson Reuters, driven by strong growth in PC shipments.

Lenovo ended Tuesday +1.5% at HK$6.21 pre-results and has rebounded 16.1% from a year-to-date low of HK$5.35 on Aug. 1, but it remains 19.5% below its 52-week high of HK$7.71 set April 17;

The 1Q results should reassure investors that its growth, in part via grabbing market shares from rivals, remain intact.

Lenovo has net cash reserves of US$3.7 billion as of June 30, representing 45% of its market cap.

Source: Dow Jones Newswire

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*DJ Lenovo: Smartphone Market Share Hits 13% in China in 2Q

Source: Dow Jones Newswires

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Investors like how Lenovo is chasing market leader

Lenovo Group (0992), the world's second-biggest maker of personal computers, posted a 30-percent increase in first-quarter profit as it expanded market share to almost pull even with leader Hewlett-Packard.

Net income climbed to US$141.4 million (HK$1.1 billion) in the three months to June 30 from US$108.8 million 12 months earlier. That beat the average of eight analysts' estimates, which was for US$133.5 million.

Lenovo shares surged 6.28 percent to close at HK$6.60, with investors seeing the results as a reflection of efforts by chief executive Yang Yuanqing to achieve his goal of making the firm the world's top PC maker.

The company increased shipments of computers including Thinkpad laptops by almost 15 percent in the quarter from a year back. That was in a period when industry levels fell 0.1 percent, according to researcher Gartner.

"The PC market is not doing well globally, but Lenovo's market share gains are offsetting that weakness," said Kirk Yang, the Hong Kong-based head of Asia technology research at Barclays.

Lenovo's market share rose two percentage points to 14.7 percent in the quarter - almost matching Hewlett- Packard's 14.9 percent - Gartner said last month. And revenue rose 35 percent to US$8.01 billion.

Sales in the Asia-Pacific and Latin America regions increased 72 percent to US$1.72 billion.

Revenue from China, Lenovo's biggest market, rose 24 percent to US$3.52 billion in the quarter, making up 44 percent of its total.

Sales in North America climbed 6.8 percent to US$1.18 billion, comprising about 15 percent of global revenue.


Source: BLOOMBERG

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LENOVO GROUP (00992) TP cut to $7 by GS on weak market demand

LENOVO GROUP (00992) delivered a better-than-expected quarterly results with growing market share in Chinese PC market, particularly in the regions where PC penetration is low and competition is not intense, Goldman Sachs said in a report.

However, the slowdown in domestic demand and worries over macro economy may lead to delay in change of computer equipment among enterprises, posing impact on LENOVO GROUP's delivery growth.

Smartphone business is rather strong, but GS believes it will shore up sales revenue rather than profit over the next year.

GS reduced LENOVO GROUP's earnings per share forecast by 8-15% in 2013-15. Its target price was lowered from $7.5 to $7 with a Neutral rating.

Source: AAStocks Financial News

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Japan's NEC offered its entire stake in computer maker Lenovo Group, in a deal worth about $235 million.


Source: Reuters