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Lenovo Group
(0992)
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Rating:57Neutral
Price Target:
HK$23.00
â–¼(-24.74% Downside)
Action:Reiterated
Date:10/16/26
The score is held back primarily by weaker recent financial quality (net margin compression and sharply lower TTM free cash flow) and bearish technical momentum (trading below major moving averages with negative MACD). These are partially offset by a very strong, AI-driven earnings-call outlook and execution highlights, but the high P/E and modest yield limit valuation support.
Positive Factors
PC market leadership
Lenovo’s sustained global PC leadership provides scale, brand strength, and channel reach in its largest business. Maintaining a wide share advantage can support procurement leverage, customer access, and premium product adoption, helping defend profitability through market cycles.
Negative Factors
Thin profitability and weaker cash flow
Very thin net margins leave Lenovo sensitive to modest changes in costs, pricing, product mix, or demand. The sharp decline in free cash flow also weakens confidence in cash conversion and could constrain internally funded investment if the softness persists.
Read all positive and negative factors
Positive Factors
Negative Factors
PC market leadership
Lenovo’s sustained global PC leadership provides scale, brand strength, and channel reach in its largest business. Maintaining a wide share advantage can support procurement leverage, customer access, and premium product adoption, helping defend profitability through market cycles.
Read all positive factors
Lenovo Group (0992) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$287.05B
Dividend Yield1.89%
Average Volume (3M)87.44M
Price to Earnings (P/E)43.0
Beta (1Y)1.08
Revenue Growth26.22%
EPS Growth-52.64%
CountryHK
Employees73,500
SectorGeneral
Sector StrengthN/A
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.07
Shares Outstanding12,826,045,000
10 Day Avg. Volume133,984,158
30 Day Avg. Volume87,435,872
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.87
Price to Sales (P/S)0.17
P/FCF Ratio4.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$49.26Price Target Upside61.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)0.29
Revenue Forecast (FY)HK$108.20B
Lenovo Group Business Overview & Revenue Model
Company Description
Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. Th...
How the Company Makes Money
Lenovo primarily makes money by selling hardware and associated software and services to consumers, commercial customers, and enterprises through a mix of direct and indirect sales channels.
1) Device sales (core revenue stream)
- PCs and smart d...
Lenovo Group Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The call is strongly positive on operational and financial performance: record group revenue (USD 26.9B, +43% YoY), record adjusted profits (adjusted net income USD 1.1B, +176% YoY), rapid AI‑related revenue growth (USD 9B, +60% YoY) and record quarters across all business groups (IDG, ISG, SSG). ISG's near‑doubling of revenue and margin expansion to 9.1%, the USD 54B AI server pipeline and the SSG services momentum are notable drivers of durable growth. The primary risks noted were a reported GAAP net loss due to non‑cash accounting items, persistent memory and component cost pressure, expected unit declines in PC and smartphone markets, and the fact that the AI pipeline is not fully committed. Overall, positive execution and strong AI momentum substantially outweigh these challenges.Positive Updates
Record Group Revenue
Reported record quarterly revenue of USD 26.9 billion, up 43% year‑on‑year, the highest growth in the past five years.
Negative Updates
Reported GAAP Net Loss
Reported net loss of USD 609 million due primarily to a USD 1.7 billion non‑cash fair value loss from warrant revaluation (driven by strong share price performance) and USD 30 million notional interest on convertible bonds; adjusted metrics exclude these items.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Group Revenue
Reported record quarterly revenue of USD 26.9 billion, up 43% year‑on‑year, the highest growth in the past five years.
Read all positive updates
Company Guidance
Guidance reiterated management’s targets to reach $100 billion in annual revenue within two years (now possibly sooner given Q1 momentum) and a long‑term aspiration of ~$130 billion over 3–5 years, with a net income margin goal of greater than 5%; near‑term expectations include continued strong AI demand and memory tightness through at least the end of next year. Q1 results underpinning that guidance were: group revenue $26.9B (+43% YoY), adjusted operating income $1.5B (+141%), adjusted net income $1.1B (+176%), adjusted operating/net margins 5.7%/4.0%, and AI‑related revenue >$9B (+60%) = 35% of group. Business‑level metrics cited as drivers include IDG revenue $17.1B (+27%) with operating profit $1.2B and 7.1% margin and 24.2% PC share (AI PC share 25.1%); ISG revenue $8.5B (+98%) with operating profit $777M and 9.1% margin and an AI server pipeline of $54B (q/q +157%); SSG revenue $2.9B (+28%) with operating profit $697M and 24.2% margin, TruScale +35%, Projects & Solutions AI library +50%, and SSG TAM expected >$850B by FY29–30 (AI adding >$200B this fiscal year). Management also guided that H2 unit demand may soften (PC units down ~15% and smartphone shipments down ~20%), but Lenovo expects to offset unit declines with higher ASPs, premium mix, procurement scale and supply‑chain advantages to sustain margin expansion.Lenovo Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
64
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 91.08B | 82.73B | 69.08B | 56.86B | 61.95B | 71.62B |
| Gross Profit | 14.16B | 12.76B | 11.10B | 9.80B | 10.50B | 12.05B |
| EBITDA | 5.70B | 4.58B | 3.67B | 3.56B | 4.15B | 4.36B |
| Net Income | 796.61M | 1.90B | 1.38B | 1.01B | 1.61B | 2.03B |
Balance Sheet | ||||||
| Total Assets | 70.10B | 57.15B | 44.22B | 38.75B | 38.92B | 44.51B |
| Cash, Cash Equivalents and Short-Term Investments | 6.08B | 4.90B | 4.82B | 3.57B | 4.32B | 4.06B |
| Total Debt | 6.67B | 5.16B | 5.73B | 3.96B | 4.36B | 3.83B |
| Total Liabilities | 61.80B | 48.57B | 37.46B | 32.67B | 32.87B | 39.12B |
| Stockholders Equity | 7.21B | 7.64B | 6.07B | 5.58B | 5.59B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | 2.01B | 2.86B | -51.33M | 725.09M | 1.22B | 2.79B |
| Operating Cash Flow | 3.30B | 4.12B | 1.10B | 2.01B | 2.80B | 4.08B |
| Investing Cash Flow | -2.39B | -1.93B | -1.06B | -1.28B | -1.92B | -1.50B |
| Financing Cash Flow | 500.53M | -2.07B | 1.19B | -1.34B | -413.78M | -1.76B |
Lenovo Group Technical Analysis
Negative
30.56
Price Trends
31.41
Negative
27.73
Negative
19.31
Positive
Market Momentum
-2.81
Positive
30.23
Neutral
7.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0992, the sentiment is Negative. The current price of 30.56 is above the 20-day moving average (MA) of 30.03, below the 50-day MA of 31.41, and above the 200-day MA of 19.31, indicating a neutral trend. The MACD of -2.81 indicates Positive momentum. The RSI at 30.23 is Neutral, neither overbought nor oversold. The STOCH value of 7.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0992.
Lenovo Group Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | HK$287.05B | 42.97 | 11.29% | 1.89% | 26.22% | -52.64% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
47 Neutral | HK$35.84B | 12.97 | 4.51% | 0.76% | 26.95% | 402.25% | |
43 Neutral | HK$1.83B | -26.37 | 88.11% | 2.03% | 3.00% | 6.72% | |
34 Underperform | HK$359.53M | -15.27 | -17.54% | 3.45% | -4.56% | 14.91% |
* General Sector Average
HK:0992
Lenovo Group
23.78
12.48
110.52%
HK:2028
Jolimark Holdings
2.02
1.93
2221.84%
HK:1079
Pine Technology Holdings Limited
0.17
-0.23
-57.54%
HK:3396
Legend Holdings Corporation Class H
15.87
5.68
55.71%
Lenovo Group Corporate Events
Lenovo Schedules Board Meeting to Review Interim Results and Dividend
Oct 14, 2026
Lenovo Group has scheduled a board meeting for November 19, 2026, to review and potentially approve the unaudited financial results for the six months ended September 30, 2026. The board will also consider the declaration of an interim dividend, s...
Lenovo Moves to Fully Retire 2029 Convertible Bonds After Major Conversion
Sep 8, 2026
Lenovo Group has announced a further partial conversion of its US$675 million 2.50% convertible bonds due 2029, with US$87.675 million, or about 12.99% of the original issue, recently converted into 82,107,578 shares at an adjusted price of HK$8.3...
Lenovo advances conversion and full redemption of 2029 convertible bonds
Sep 7, 2026
Lenovo has announced that US$48,711,000 of its 2.50% US$675 million convertible bonds due 2029 have been converted into 45,617,821 shares at an adjusted price of HK$8.37 per share, reducing the outstanding principal to US$117,350,000. The converte...
Lenovo Advances 2029 Convertible Bond Conversion Ahead of Full Redemption
Sep 4, 2026
Lenovo Group has announced a substantial partial conversion and cancellation of its US$675 million 2.50% convertible bonds due 2029, with US$283.9 million, or about 42.06% of the initial principal, converted into 265,869,363 new shares at HK$8.37 ...
Lenovo Posts Record Quarterly Revenue as AI Push Lifts Profits Despite Accounting Loss
Aug 13, 2026
Lenovo reported record first-quarter revenue of US$26.9 billion for fiscal 2026/27, with all three business groups – Intelligent Devices, Infrastructure Solutions and Solutions Services – delivering double-digit growth and record firs...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.