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Lenovo Group
(0992)
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Rating:66Neutral
Price Target:
HK$32.00
â–˛(4.71% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by a mixed financial profile (solid top-line growth but margin compression and a sharp TTM free-cash-flow decline). Technicals are supportive due to a strong uptrend, though overbought signals add near-term risk. The latest earnings call was a major positive (record results, strong AI momentum, reaffirmed targets), but valuation is a notable headwind given the very high P/E and modest dividend yield.
Positive Factors
AI Revenue and Infrastructure Growth
Rapid AI revenue growth and expanding infrastructure demand can diversify Lenovo beyond mature PC markets. The AI server pipeline, partnerships and rising ISG profitability support a potentially durable multi-year growth platform.
Negative Factors
Thin and Compressed Net Margins
Very thin net profitability leaves limited room for component inflation, pricing pressure or execution errors. The decline from the prior annual margin indicates that revenue growth is not yet consistently translating into stronger bottom-line resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
AI Revenue and Infrastructure Growth
Rapid AI revenue growth and expanding infrastructure demand can diversify Lenovo beyond mature PC markets. The AI server pipeline, partnerships and rising ISG profitability support a potentially durable multi-year growth platform.
Read all positive factors
Lenovo Group (0992) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$401.91B
Dividend Yield1.3%
Average Volume (3M)115.56M
Price to Earnings (P/E)62.2
Beta (1Y)0.85
Revenue Growth26.22%
EPS Growth-52.64%
CountryHK
Employees73,500
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.07
Shares Outstanding12,404,659,000
10 Day Avg. Volume96,280,167
30 Day Avg. Volume115,557,877
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$44.09Price Target Upside44.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)0.22
Revenue Forecast (FY)HK$106.45B
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 related solutions, supplemented by services and software/solutions offerings.
1) Hardware sales (largest driver)
- PCs and smart devices: Revenue is generated from selling notebooks, desktops, ...
Lenovo Group Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Oct 29, 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 | 5.61B | 4.58B | 3.67B | 3.56B | 4.14B | 4.35B |
| 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
Positive
30.56
Price Trends
26.16
Positive
21.56
Positive
15.42
Positive
Market Momentum
1.36
Positive
65.70
Neutral
72.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0992, the sentiment is Positive. The current price of 30.56 is below the 20-day moving average (MA) of 30.74, above the 50-day MA of 26.16, and above the 200-day MA of 15.42, indicating a bullish trend. The MACD of 1.36 indicates Positive momentum. The RSI at 65.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0992.
Lenovo Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$401.91B | 62.23 | 11.29% | 1.30% | 26.22% | -52.64% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | HK$44.60B | 16.23 | 4.60% | 0.61% | 26.95% | 402.25% | |
45 Neutral | HK$1.72B | -24.90 | 88.11% | 2.03% | 3.00% | 6.72% | |
34 Underperform | HK$462.25M | -19.64 | -17.54% | 3.45% | -4.56% | 14.91% |
* Technology Sector Average
HK:0992
Lenovo Group
32.40
21.96
210.49%
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2.01
1.87
1385.19%
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0.22
-0.08
-27.76%
HK:3396
Legend Holdings Corporation Class H
18.93
8.25
77.28%
Lenovo Group Corporate Events
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...
Lenovo Cuts Convertible Bond and Warrant Prices After Dividend Payouts
Jul 23, 2026
Lenovo Group has adjusted the conversion price of its US$2 billion zero‑coupon convertible bonds due 2028 following the declaration of a final cash dividend. The conversion price will be reduced from HK$9.70 to HK$9.37 per share effective Au...
Lenovo Cuts Convertible Bond Conversion Price After Final Dividend Approval
Jul 23, 2026
Lenovo Group has adjusted the conversion price on its US$2 billion zero coupon convertible bonds due 2033 following shareholder approval of a cash final dividend of HK33.7 cents per share. The conversion price will be reduced from HK$36.70 to HK$3...
Lenovo Shareholders Approve All AGM Resolutions, Including Dividend and Share Mandates
Jul 23, 2026
Lenovo Group shareholders approved all resolutions at the July 23, 2026 annual general meeting, including receipt of the audited financial statements for the year ended March 31, 2026 and a final dividend of HK33.7 cents per share. Investors also ...
Lenovo Sets August Board Meeting to Review Q1 FY2026 Results
Jul 13, 2026
Lenovo Group Limited has scheduled a board meeting for August 13, 2026, to review and potentially approve the unaudited financial results for the three months ended June 30, 2026. The move signals the forthcoming release of the company’s lat...
Lenovo to Shift Registered Office to Hong Kong’s Cyberport Tech Hub
Jun 29, 2026
Lenovo Group has announced that it will change its registered office to Units 616-617, Level 6, Cyberport 5, 100 Cyberport Road, Pokfulam, Hong Kong, effective July 6, 2026. The move to Cyberport, a major Hong Kong technology hub, underscores Leno...
Lenovo Sets July 2026 AGM to Approve Dividend and Renew Capital Issuance Mandate
Jun 26, 2026
Lenovo Group has called its annual general meeting for July 23, 2026, to be held in hybrid format in Hong Kong with online access, underscoring its continued engagement with shareholders across jurisdictions. The agenda includes receiving audited ...
Lenovo Raises US$2 Billion via Zero-Coupon Convertible Bonds and Retires Part of 2029 Notes
Jun 25, 2026
Lenovo Group has completed the issuance of US$2 billion zero-coupon convertible bonds due 2033, with approval secured for the listing of the associated conversion shares in Hong Kong and an expected listing of the new bonds on the Vienna MTF. The ...
Lenovo Raises US$2 Billion via Zero-Coupon Convertible Bonds and Moves to Offset Dilution
Jun 17, 2026
Lenovo Group plans to issue US$2 billion of zero-coupon convertible bonds due 2033, with an initial conversion price of HK$36.70 per share, and seek listings for the bonds in Vienna and the conversion shares in Hong Kong. The conversion shares wil...
Lenovo Plans New Convertible Bond Issue, 2029 Bond Buyback and Share Repurchases
Jun 17, 2026
Lenovo Group plans to issue a new tranche of convertible bonds to institutional investors, with final terms such as size and pricing to be set through book-building, and intends to list the instruments in Vienna while securing Hong Kong listing ap...
Lenovo Adds Saudi Investment Fund Executive Dr. Aldawood to Board as Non-Executive Director
Jun 10, 2026
Lenovo Group has appointed Dr. Muhammad Nasser A. Aldawood as a non-executive director effective June 10, 2026, strengthening its board with a senior executive from Saudi Arabia’s Public Investment Fund. Aldawood, currently Acting CEO of Ala...
Lenovo Updates Market on Board Composition and Governance Structure
Jun 10, 2026
Lenovo Group Limited has disclosed the composition of its board of directors, confirming Yang Yuanqing as chairman, executive director, and chief executive officer, supported by a mix of non-executive and independent non-executive directors. The a...
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.