Executive Summary
Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record and pays a dividend.
Similar Companies
Share Price & News
How has Lenovo Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 992's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.6%
992
5.1%
HK Tech
7.4%
HK Market
1 Year Return
-44.4%
992
-24.7%
HK Tech
-22.7%
HK Market
Return vs Industry: 992 underperformed the Hong Kong Tech industry which returned -22.9% over the past year.
Return vs Market: 992 underperformed the Hong Kong Market which returned -20.3% over the past year.
Shareholder returns
| 992 | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.6% | 5.1% | 7.4% |
| 30 Day | -19.1% | -19.7% | -11.2% |
| 90 Day | -25.6% | -14.6% | -17.3% |
| 1 Year | -41.7%-44.4% | -23.8%-24.7% | -19.9%-22.7% |
| 3 Year | -12.2%-25.5% | -48.9%-52.2% | -5.3%-14.8% |
| 5 Year | -55.5%-65.3% | -48.6%-58.7% | -8.7%-23.4% |
Price Volatility Vs. Market
How volatile is Lenovo Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Is Lenovo Group's (HKG:992) P/E Ratio After Its Share Price Tanked?1 week ago | Simply Wall St
Lenovo Group Limited (HKG:992) Insiders Have Been Selling3 weeks ago | Simply Wall St
What Can We Make Of Lenovo Group Limited’s (HKG:992) High Return On Capital?Valuation
Is Lenovo Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 992 (HK$3.89) is trading below our estimate of fair value (HK$13.75)
Significantly Below Fair Value: 992 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 992 is good value based on its PE Ratio (8.1x) compared to the Tech industry average (8.9x).
PE vs Market: 992 is good value based on its PE Ratio (8.1x) compared to the Hong Kong market (9x).
Price to Earnings Growth Ratio
PEG Ratio: 992 is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: 992 is overvalued based on its PB Ratio (2.3x) compared to the HK Tech industry average (0.8x).
Next Steps
Future Growth
How is Lenovo Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
15.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 992's forecast earnings growth (15.1% per year) is above the savings rate (1.6%).
Earnings vs Market: 992's earnings (15.1% per year) are forecast to grow faster than the Hong Kong market (12.8% per year).
High Growth Earnings: 992's earnings are forecast to grow, but not significantly.
Revenue vs Market: 992's revenue (3% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).
High Growth Revenue: 992's revenue (3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 992's Return on Equity is forecast to be high in 3 years time (20.6%)
Next Steps
Past Performance
How has Lenovo Group performed over the past 5 years?
4.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 992 has high quality earnings.
Growing Profit Margin: 992's current net profit margins (1.4%) are higher than last year (1%).
Past Earnings Growth Analysis
Earnings Trend: 992's earnings have grown by 4.1% per year over the past 5 years.
Accelerating Growth: 992's earnings growth over the past year (45%) exceeds its 5-year average (4.1% per year).
Earnings vs Industry: 992 earnings growth over the past year (45%) exceeded the Tech industry -8.1%.
Return on Equity
High ROE: Whilst 992's Return on Equity (20.36%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Lenovo Group's financial position?
Financial Position Analysis
Short Term Liabilities: 992's short term assets ($21.4B) do not cover its short term liabilities ($25.2B).
Long Term Liabilities: 992's short term assets ($21.4B) exceed its long term liabilities ($5.5B).
Debt to Equity History and Analysis
Debt Level: 992's debt to equity ratio (112.2%) is considered high.
Reducing Debt: 992's debt to equity ratio has increased from 64.5% to 112.2% over the past 5 years.
Debt Coverage: 992's debt is well covered by operating cash flow (27%).
Interest Coverage: 992's interest payments on its debt are well covered by EBIT (6.5x coverage).
Balance Sheet
Inventory Level: 992 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 992's debt is covered by short term assets (assets are 4.5x debt).
Next Steps
Dividend
What is Lenovo Group's current dividend yield, its reliability and sustainability?
7.15%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 992's dividend (7.15%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.67%).
High Dividend: 992's dividend (7.15%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).
Stability and Growth of Payments
Stable Dividend: 992's dividends per share have been stable in the past 10 years.
Growing Dividend: 992's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.7%), 992's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 992's dividends in 3 years are forecast to be well covered by earnings (45.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Yuanqing Yang (54yo)
11s
Tenure
US$15,371,000
Compensation
Mr. Yuanqing Yang has been the Chairman and Chief Executive Officer of Lenovo Group Limited since April 30, 2005 and February 5, 2009 respectively. Mr. Yang serves as Executive Director of Lenovo Group sin ...
CEO Compensation Analysis
Compensation vs Market: Yuanqing's total compensation ($USD15.37M) is above average for companies of similar size in the Hong Kong market ($USD718.74K).
Compensation vs Earnings: Yuanqing's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 11yrs | US$15.37m | 5.97% $2.9b | |
| Corporate President & COO | 4.92yrs | no data | no data | |
| Founder | 8.33yrs | US$3.17m | no data | |
| Executive VP & CFO | 12.83yrs | US$16.00k | no data | |
| Senior VP & CTO | 3.33yrs | no data | no data | |
| Senior VP & Chief Information Officer | 3.58yrs | no data | no data | |
| Vice President of Investor Relations | 2.17yrs | no data | no data | |
| Senior VP & Chief Legal Officer | 3.33yrs | no data | no data | |
| Vice President of Global Communications | 3yrs | no data | no data | |
| Senior VP and Chief Strategy & Marketing Officer | 1.75yrs | no data | no data |
3.3yrs
Average Tenure
61yo
Average Age
Experienced Management: 992's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 11yrs | US$15.37m | 5.97% $2.9b | |
| Founder | 8.33yrs | US$3.17m | no data | |
| Lead Independent Director | 6.83yrs | US$336.00k | 0.032% $15.7m | |
| Independent Non-Executive Director | 5.33yrs | US$303.00k | 0.0049% $2.4m | |
| Independent Non-Executive Director | 8.5yrs | US$301.00k | 0.0060% $2.9m | |
| Independent Non-Executive Director | 7.17yrs | US$301.00k | 0.0054% $2.6m | |
| Non-Executive Director | 14.92yrs | US$301.00k | 0.023% $11.0m | |
| Non-Executive Director | 8.33yrs | US$301.00k | 0.0059% $2.9m | |
| Independent Non-Executive Director | 10.33yrs | US$329.00k | 0.0097% $4.7m | |
| Independent Non-Executive Director | 4.5yrs | US$300.00k | 0.0028% $1.4m |
8.3yrs
Average Tenure
58.5yo
Average Age
Experienced Board: 992's board of directors are considered experienced (8.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Lenovo Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Lenovo Group Limited
- Ticker: 992
- Exchange: SEHK
- Founded: 1984
- Industry: Technology Hardware, Storage and Peripherals
- Sector: Tech
- Market Cap: HK$48.660b
- Shares outstanding: 12.01b
- Website: https://www.lenovo.com
Number of Employees
Location
- Lenovo Group Limited
- Lincoln House
- 23rd Floor
- Quarry Bay
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LNVG.F | OTCPK (Pink Sheets LLC) | Yes | Voting Ordinary Shares | US | USD | Feb 1994 |
| 992 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Voting Ordinary Shares | HK | HKD | Feb 1994 |
| LHL | DB (Deutsche Boerse AG) | Yes | Voting Ordinary Shares | DE | EUR | Feb 1994 |
| 992 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Voting Ordinary Shares | HK | HKD | Feb 1994 |
| LEN | SWX (SIX Swiss Exchange) | Yes | Voting Ordinary Shares | CH | CHF | Feb 1994 |
| 992 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Voting Ordinary Shares | HK | HKD | Feb 1994 |
| LNVG.Y | OTCPK (Pink Sheets LLC) | ADR EACH 1 REPR 20 HKD0.025 | US | USD | Apr 1995 | |
| LHL1 | DB (Deutsche Boerse AG) | ADR EACH 1 REPR 20 HKD0.025 | DE | EUR | Apr 1995 | |
| LHL1 | BST (Boerse-Stuttgart) | ADR EACH 1 REPR 20 HKD0.025 | DE | EUR | Apr 1995 |
Biography
Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. The company offers commercial and consumer personal computers, as well as servers and workstations; and a family of mobile Internet devices, including tablets and smartphones. It also provides laptops, desktops, phones, accessories, monitors, ultrabooks, data center solutions, systems, software, server and storage products, networking products, and replacement parts. In addition, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, supply chain, finance, administration support, procurement agency, data management solution, intellectual property, investment management, and computer hardware and software systems repair services. Further, it is involved in the retail and service business for consumer electronic products and related digital services; and development, ownership, licensing, and sale of communications hardware and software. The company operates in China, the Asia Pacific, Europe, the Middle East, Africa, and North America. Lenovo Group Limited has a strategic partnership with the NetApp. The company was founded in 1984 and is headquartered in Quarry Bay, Hong Kong, and is considered as a Red Chip company due to its listing on the Hong Kong Stock Exchange.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 12:38 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.