Lenovo 0992

[winston]

vested

LENOVO GROUP (00992.HK) downgraded to Equalweight, target reduced to $9.8 - MS
2014-02-04

LENOVO GROUP (00992.HK) -1.650 (16.402%) Short selling $378.85M; Ratio 21.159% has adopted aggressive merger and acquisition strategies, said Morgan Stanley, who is positive on the takeover of IBM's entry level servers.

The broker believed LENOVO GROUP will be the world’s third largest server brand if the deal is approved.

The consideration of IBM server business is US$2.3 billion, representing a 1.75% share dilution, compared with the US$2.9 billion Motorola Mobility deal, which represented 5% share dilution.

LENOVO GROUP was downgraded from Overweight to Equalweight with target price reduced from $12.5 to $9.8.


Source: AAStocks Financial News

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vested

LENOVO GROUP (00992.HK) downgraded to Neutral, target reduced to $10.3 - UBS
2014-02-04

After the acquisition of IBM's X86 server and hardware business by LENOVO GROUP (00992.HK) -1.650 (16.402%) Short selling $505.29M; Ratio 16.482% , the announcement in connection with the acquisition of Motorola's mobile device business in such a short time is quite a surprise, UBS mentioned in a report.

The broker held that the group's share price is hard to present a satisfactory performance, unless the management can outline a clear strategy for improving the Motorola business.

As the uncertainty of acquiring Motorola business offsets the advantages from buying IBM business, the group's 2015-17 EPS forecasts were reduced from US$0.09/0.11/0.13 to US$0.06/0.08/0.12.

The rating was downgraded from Buy to Neutral, with target price trimmed from $12 to $10.3.

Source: AAStocks Financial News

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Downward mobility for Lenovo in analysts' hit

Wednesday, February 05, 2014

Shares of Lenovo Group (0992) plunged the most in five years yesterday, after they were downgraded by at least five brokerages.

Lenovo fell 16 percent to HK$8.41 at the close of trade, cutting almost HK$17.16 billion from its market value in the biggest decline since January 2009.

The world's biggest maker of personal computers was cut at UBS, Morgan Stanley, Jefferies Group, JI-Asia Research and Kim Eng Securities, Bloomberg data showed.

Chief executive Yang Yuanqing announced his company's two biggest deals worth a total of US$5 billion (HK$39 billion) within a week last month as he seeks growth drivers to help weather a slump in global PC shipments.

The purchase of International Business Machines Corp's low-end x86 server unit delivers corporate clients, while the deal for Google's Motorola Mobility was criticized for adding an unprofitable business with shrinking sales.

Motorola Mobility is expected to lose money for the next three fiscal years, said Arthur Hsieh, a UBS analyst, in a report out on Monday.

Hsieh downgraded Lenovo shares to neutral, easing the price forecast to HK$10.30 from HK$12.

"The potential uncertainty in the MMI deal could offset the benefit from the IBM x86 deal," he warned.

Lenovo agreed to pay US$2.3 billion for IBM's low-end server unit, adding a business with wider profit margins than PCs and giving it about 14 percent of the market.

It then agreed to buy Motorola Mobility for US$2.91 billion in cash and stock, creating the world's No3 smartphone vendor.


Source: BLOOMBERG

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vested

LENOVO GROUP (00992.HK) rated Overweight, target reduced to $10.2 - HSBC
2014-02-06

Recent correction on the stock price of LENOVO GROUP (00992.HK) -0.200 (2.350%) Short selling $206.45M; Ratio 22.649% after announcing the acquisition of Motorola Mobility reflected potential risks on 2015 profit, but HSBC believed the deal will enhance the competitiveness of the company and meet its long-term investment theme.

LENOVO GROUP was reiterated Overweight with target price reduced from $12 to $10.2, representing a lower multiple of 15.7x to 13.4x.

LENOVO GROUP will face more challenges in intellect property rights as it has been expanding into new smartphone markets, and the acquisition of Motorola Mobility is apparently due to consideration on future intellect property payments. The broker believed Motorola Mobility will see largest growth in emerging markets.

HSBC forecast LENOVO GROUP will report strong results on 13 February. The broker was of the view that Motorola Mobility and IBM X86 server business will reduce LENOVO GROUP FY2015/16 earnings forecast by 15.7%, adding the recent 22% correction has priced in most of the risks.


Source; AAStocks Financial News

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vested

Google bought US$750m Lenovo stake on Jan 30: HKEx

[HONG KONG] Internet search company Google Inc bought a 5.94 per cent stake in China's Lenovo Group Ltd last month for US$750 million, according to a disclosure on the Hong Kong stock exchange.

Google acquired 618.3 million Lenovo shares at US$1.213 per share on Jan. 30, the stock exchange said late on Thursday.

Lenovo agreed to buy Google's Motorola handset division last week for US$2.91 billion in a cash and stock deal.

Source: Reuters

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vested

Lenovo Projects End to Motorola Losses With China Phone

Lenovo Group Ltd. (992), which posted a 29 percent surge in profit today, expects to end losses at Motorola Mobility within quarters of completing a deal as it reintroduces the smartphone brand to China.

http://www.bloomberg.com/news/2014-02-1 ... f-pcs.html

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vested

LENOVO GROUP (00992.HK) disagrees being too aggressive
2014-02-13

LENOVO GROUP (00992.HK) -0.050 (0.576%) Short selling $210.33M; Ratio 29.747% Chairman Yang Yuan Qing disagreed that the group is being too aggressive for making two acquisitions recently.

He conceived the company is good at grasping business opportunities to make further developments, yet it takes time to evaluate the two acquisitions.

Yang stated LENOVO GROUP will introduce innovative smartphone products if it can successfully purchase Motorola Mobility, and he was confident that the group will restore profitability in next several quarters.


Source: AAStocks Financial News

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Lenovo net surges

Lenovo Group (0992), which posted a 29 percent surge in profit yesterday, expects to end losses at Motorola Mobility within a few quarters of completing a deal as it reintroduces the smartphone brand to China.

"In a few quarters we can turn around the business," chief executive offi cer Yang Yuanqing said. Beijing- based Lenovo is buying Motorola from Google Inc for US$2.91 billion (HK$23.16 billion).

Motorola's operating losses topped US$1 billion last year. Buying it adds new risks, Yang said.

Net income rose to US$265.3 million in the three months to December 31 from US$204.9 million a year earlier.

Sales rose 15 percent to US$10.8 billion. But the shares fell 0.6 percent to HK$8.63.


Source: BLOOMBERG

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vested

LENOVO GROUP (00992.HK) smartphone market share in Mainland drops in 4Q2013
2014-02-21

According to the latest report on smartphone market in China for the fourth quarter of 2013 released by the market research agency Canalys, LENOVO GROUP (00992.HK) -0.230 (2.843%) Short selling $254.08M; Ratio 21.198% 's market status remained second, whereas its market share declined from the year-ago 14% to 12%.

Samsung and Xiaomi saw their market share rise 2 ppt to 19% and 7% respectively.

Source: AAStocks Financial News

[winston]

not vested

LENOVO GROUP (00992.HK) sinks below 250MA on bearsh BofA ML report
Feb 21, 2014

Target price of LENOVO GROUP (00992.HK) was reduced by 37% by Bank of America Merrill Lynch.

Share price reached its trough at $7.75, below its 250MA ($8.08), and last stood at $7.88, down 2.6%. Trading volume reached 131 million shares.

The bank pointed out LENOVO GROUP will need to spend a long time to restore profitability in Motorola Mobility.

In addition, the group will need to pay a high cost on branding. 2015/2016 EPS estimates were anticipated to decline by 41%/14%, thus rating was downgraded from Buy to Underperform, and target price was lowered from $11.3 to $7.1.

Source: AAStocks Financial News