SEHK:992

Stock Analysis Report

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

992IndustryMarket
7 Day-0.5%-2.6%0.9%
30 Day0.2%-5.5%0.5%
90 Day-15.7%-7.1%-4.3%
1 Year11.8%6.7%-22.0%-22.7%4.2%0.6%
3 Year24.7%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

Valuation

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

company5.1%marketbottom25%2.3%markettop25%6.3%industryaverage3.6%forecastin3Years5.0%

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

BuyUS$541,58721 Aug 19
William Grabe
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares96,963
Max PriceUS$5.59
BuyUS$89,64721 Aug 19
Chih-Yuan Yang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares16,050
Max PriceUS$5.59
BuyUS$236,32521 Aug 19
Nobuyuki Idei
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares40,363
Max PriceUS$5.85
BuyUS$225,44821 Aug 19
Nicholas Charles Allen
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares40,363
Max PriceUS$5.59
BuyUS$46,96321 Aug 19
Gordon Robert-Halyburton Orr
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares8,408
Max PriceUS$5.59
BuyUS$102,98521 Aug 19
William Brown
EntityIndividual
Shares18,438
Max PriceUS$5.59
SellUS$44,096,64826 Jun 19
Xuezheng Z. Ma
EntityIndividual
Shares7,616,000
Max PriceUS$5.79
SellUS$1,543,83013 Mar 19
Linan Zhu
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares224,000
Max PriceUS$6.89
SellUS$1,442,04508 Mar 19
Linan Zhu
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares199,937
Max PriceUS$7.21
SellUS$3,700,00004 Mar 19
Xuezheng Z. Ma
EntityIndividual
Shares500,000
Max PriceUS$7.40
BuyUS$28,05017 Dec 18
William Brown
EntityIndividual
Shares4,959
Max PriceUS$5.66
BuyUS$33,44117 Dec 18
William Grabe
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares5,912
Max PriceUS$5.66
BuyUS$61,40017 Dec 18
Nicholas Charles Allen
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,855
Max PriceUS$5.66
BuyUS$12,78917 Dec 18
Gordon Robert-Halyburton Orr
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares2,261
Max PriceUS$5.66
BuyUS$24,41917 Dec 18
Chih-Yuan Yang
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,317
Max PriceUS$5.66
BuyUS$8,45117 Dec 18
Nobuyuki Idei
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,494
Max PriceUS$5.66
SellUS$274,904,52007 Dec 18
BlackRock, Inc.
EntityCompany
Shares48,489,997
Max PriceUS$5.67
BuyUS$249,80430 Nov 18
William Grabe
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares46,260
Max PriceUS$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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNVG.FOTCPK (Pink Sheets LLC)YesVoting Ordinary SharesUSUSDFeb 1994
992SEHK (The Stock Exchange of Hong Kong Ltd.)YesVoting Ordinary SharesHKHKDFeb 1994
LHLDB (Deutsche Boerse AG)YesVoting Ordinary SharesDEEURFeb 1994
992SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesVoting Ordinary SharesHKHKDFeb 1994
LENSWX (SIX Swiss Exchange)YesVoting Ordinary SharesCHCHFFeb 1994
992SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesVoting Ordinary SharesHKHKDFeb 1994
LNVG.YOTCPK (Pink Sheets LLC)ADR EACH 1 REPR 20 HKD0.025USUSDApr 1995
LHL1DB (Deutsche Boerse AG)ADR EACH 1 REPR 20 HKD0.025DEEURApr 1995
LHL1BST (Boerse-Stuttgart)ADR EACH 1 REPR 20 HKD0.025DEEURApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:33
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.