Executive Summary
Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services.
Snowflake
Fundamentals
Average dividend payer with mediocre balance sheet.
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
Market Performance
7 Day Return
-0.5%
992
-2.6%
HK Tech
0.9%
HK Market
1 Year Return
6.7%
992
-22.7%
HK Tech
0.6%
HK Market
Return vs Industry: 992 exceeded the Hong Kong Tech industry which returned -22.7% over the past year.
Return vs Market: 992 exceeded the Hong Kong Market which returned 0.6% over the past year.
Shareholder returns
| 992 | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | -2.6% | 0.9% |
| 30 Day | 0.2% | -5.5% | 0.5% |
| 90 Day | -15.7% | -7.1% | -4.3% |
| 1 Year | 11.8%6.7% | -22.0%-22.7% | 4.2%0.6% |
| 3 Year | 24.7%5.7% | -3.5%-12.1% | 15.6%4.0% |
| 5 Year | -38.6%-51.9% | -32.8%-46.1% | 20.0%-0.08% |
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
6 days ago | Simply Wall St
Should You Like Lenovo Group Limited’s (HKG:992) High Return On Capital Employed?3 weeks ago | Simply Wall St
Is Lenovo Group Limited's (HKG:992) CEO Paid Enough Relative To Peers?1 month ago | Simply Wall St
If You Had Bought Lenovo Group (HKG:992) Stock Five Years Ago, You'd Be Sitting On A 54% Loss, TodayValuation
Is Lenovo Group undervalued compared to its fair value and its price relative to the market?
37.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 992 (HK$5.42) is trading below our estimate of fair value (HK$8.65)
Significantly Below Fair Value: 992 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 992 is poor value based on its PE Ratio (12.1x) compared to the Tech industry average (9.8x).
PE vs Market: 992 is poor value based on its PE Ratio (12.1x) compared to the Hong Kong market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: 992 is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: 992 is overvalued based on its PB Ratio (3x) compared to the HK Tech industry average (1x).
Next Steps
Future Growth
How is Lenovo Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
13.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 992's forecast earnings growth (13.2% per year) is above the savings rate (2%).
Earnings vs Market: 992's earnings (13.2% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).
High Growth Earnings: 992's earnings are forecast to grow, but not significantly.
Revenue vs Market: 992's revenue (2.8% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).
High Growth Revenue: 992's revenue (2.8% 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 low in 3 years time (19.5%).
Next Steps
Past Performance
How has Lenovo Group performed over the past 5 years?
-17.9%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: 992's earnings have declined by -17.9% per year over the past 5 years.
Accelerating Growth: 992 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: 992 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (4%).
Return on Equity
High ROE: 992's Return on Equity (17.9%) is considered low.
Return on Assets
ROA vs Industry: 992's Return on Assets is below or equal to the Tech industry average last year.
Return on Capital Employed
ROCE Improving: 992 has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Lenovo Group's financial position?
Financial Position Analysis
Short Term Liabilities: 992's short term assets ($19.0B) do not cover its short term liabilities ($22.8B)
Long Term Liabilities: 992's short term assets (19.0B) exceeds its long term liabilities (5.3B)
Debt to Equity History and Analysis
Debt Level: 992's debt to equity ratio (115.2%) is considered high
Reducing Debt: 992's debt to equity ratio has increased from 60.1% to 115.2% over the past 5 years.
Debt Coverage: 992's debt is well covered by operating cash flow (20.3%).
Interest Coverage: 992's interest payments on its debt are well covered by EBIT (5.7x 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 3.874560x debt).
Next Steps
Dividend
What is Lenovo Group's current dividend yield, its reliability and sustainability?
5.13%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: 992's dividend (5.13%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 992's dividend (5.13%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).
Stable Dividend: 992's dividend payments have been volatile 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 (61.8%), 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 (47.9% payout ratio).
Next Steps
Management
What is the CEO of Lenovo Group's salary, the management and board of directors tenure and is there insider trading?
2.9yrs
Average management tenure
CEO
Yuanqing Yang (54yo)
10.7yrs
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 about average for companies of similar size in the Hong Kong market ($USD558.49K).
Compensation vs Earnings: Yuanqing's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.9yrs
Average Tenure
61yo
Average Age
Experienced Management: 992's management team is considered experienced (2.9 years average tenure).
Board Age and Tenure
7.9yrs
Average Tenure
58.5yo
Average Age
Experienced Board: 992's board of directors are considered experienced (7.9 years average tenure).
Insider Trading
Insider Buying: 992 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 96,963 |
| Max Price | US$5.59 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 16,050 |
| Max Price | US$5.59 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 40,363 |
| Max Price | US$5.85 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 40,363 |
| Max Price | US$5.59 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 8,408 |
| Max Price | US$5.59 |
| Entity | Individual |
| Shares | 18,438 |
| Max Price | US$5.59 |
| Entity | Individual |
| Shares | 7,616,000 |
| Max Price | US$5.79 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 224,000 |
| Max Price | US$6.89 |
| Entity | Individual |
| Role | Member of the Board of Directors Non-Executive Director |
| Shares | 199,937 |
| Max Price | US$7.21 |
| Entity | Individual |
| Shares | 500,000 |
| Max Price | US$7.40 |
| Entity | Individual |
| Shares | 4,959 |
| Max Price | US$5.66 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 5,912 |
| Max Price | US$5.66 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 10,855 |
| Max Price | US$5.66 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 2,261 |
| Max Price | US$5.66 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 4,317 |
| Max Price | US$5.66 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 1,494 |
| Max Price | US$5.66 |
| Entity | Company |
| Shares | 48,489,997 |
| Max Price | US$5.67 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 46,260 |
| Max Price | US$5.40 |
Ownership Breakdown
Management Team
Chuanzhi Liu (75yo)
Founder
- Tenure: 7.9yrs
- Compensation: US$3.17m
Yuanqing Yang (54yo)
Chairman & CEO
- Tenure: 10.7yrs
- Compensation: US$15.37m
Wai Ming Wong (61yo)
Executive VP & CFO
- Tenure: 12.4yrs
- Compensation: US$16.00k
Torod Neptune
Vice President of Global Communications
- Tenure: 2.6yrs
Gianfranco Lanci (65yo)
Corporate President & COO
- Tenure: 4.5yrs
Laura Quatela (62yo)
Senior VP & Chief Legal Officer
- Tenure: 2.9yrs
Gina Qiao (51yo)
Senior VP and Chief Strategy & Marketing Officer
- Tenure: 1.3yrs
Arthur Hu
Senior VP & Chief Information Officer
- Tenure: 3.2yrs
Yong Rui (49yo)
Senior VP & CTO
- Tenure: 2.9yrs
Jenny Lai
Vice President of Investor Relations
- Tenure: 1.8yrs
Board Members
Bill Grabe (81yo)
Lead Independent Director
- Tenure: 6.4yrs
- Compensation: US$336.00k
Jerry Yang (50yo)
Independent Non-Executive Director
- Tenure: 4.9yrs
- Compensation: US$303.00k
Nobuyuki Idei (82yo)
Independent Non-Executive Director
- Tenure: 8.1yrs
- Compensation: US$301.00k
Chuanzhi Liu (75yo)
Founder
- Tenure: 7.9yrs
- Compensation: US$3.17m
Yuanqing Yang (54yo)
Chairman & CEO
- Tenure: 10.7yrs
- Compensation: US$15.37m
Linan Zhu (56yo)
Non-Executive Director
- Tenure: 14.5yrs
- Compensation: US$301.00k
John Huan Zhao (56yo)
Non-Executive Director
- Tenure: 7.9yrs
- Compensation: US$301.00k
Nick Allen (64yo)
Independent Non-Executive Director
- Tenure: 9.9yrs
- Compensation: US$329.00k
William Brown (60yo)
Independent Non-Executive Director
- Tenure: 6.8yrs
Gordon Robert-Halyburton Orr (57yo)
Independent Non-Executive Director
- Tenure: 4.1yrs
- Compensation: US$300.00k
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$64.880b
- 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 12:33 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| 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.