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992

Lenovo Group SEHK:992 Stock Report

Last Price

HK$5.37

Market Cap

HK$65.1b

7D

-8.4%

1Y

-41.6%

Updated

03 Oct, 2022

Data

Company Financials +
992 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance6/6
Financial Health5/6
Dividends5/6

992 Stock Overview

Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services.

Lenovo Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lenovo Group
Historical stock prices
Current Share PriceHK$5.37
52 Week HighHK$9.65
52 Week LowHK$5.28
Beta1.19
1 Month Change-13.94%
3 Month Change-25.52%
1 Year Change-41.57%
3 Year Change-1.29%
5 Year Change22.88%
Change since IPO1,007.22%

Recent News & Updates

Sep 21
Do Lenovo Group's (HKG:992) Earnings Warrant Your Attention?

Do Lenovo Group's (HKG:992) Earnings Warrant Your Attention?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Sep 08
Is Lenovo Group (HKG:992) Using Too Much Debt?

Is Lenovo Group (HKG:992) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

992HK TechHK Market
7D-8.4%-8.9%-4.3%
1Y-41.6%-54.0%-28.3%

Return vs Industry: 992 exceeded the Hong Kong Tech industry which returned -53.8% over the past year.

Return vs Market: 992 underperformed the Hong Kong Market which returned -28.8% over the past year.

Price Volatility

Is 992's price volatile compared to industry and market?
992 volatility
992 Average Weekly Movement4.6%
Tech Industry Average Movement5.1%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.7%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 992 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 992's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198475,000Yuanqing Yanghttps://www.lenovo.com

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. 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.

Lenovo Group Fundamentals Summary

How do Lenovo Group's earnings and revenue compare to its market cap?
992 fundamental statistics
Market CapHK$65.13b
Earnings (TTM)HK$16.32b
Revenue (TTM)HK$562.41b

4.0x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
992 income statement (TTM)
RevenueUS$71.64b
Cost of RevenueUS$59.55b
Gross ProfitUS$12.09b
Other ExpensesUS$10.01b
EarningsUS$2.08b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin16.88%
Net Profit Margin2.90%
Debt/Equity Ratio61.8%

How did 992 perform over the long term?

See historical performance and comparison

Dividends

7.1%

Current Dividend Yield

27%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 992 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 992?

Other financial metrics that can be useful for relative valuation.

992 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.1x
Enterprise Value/EBITDA2.2x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does 992's PE Ratio compare to its peers?

992 PE Ratio vs Peers
The above table shows the PE ratio for 992 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average65x
1810 Xiaomi
48.5x44.2%HK$218.0b
3396 Legend Holdings
8.5x82.7%HK$16.0b
2385 Readboy Education Holding
191.3xn/aHK$2.3b
2308 EVOC Intelligent Technology
11.7xn/aHK$2.1b
992 Lenovo Group
4x5.9%HK$65.1b

Price-To-Earnings vs Peers: 992 is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (65x).


Price to Earnings Ratio vs Industry

How does 992's PE Ratio compare vs other companies in the Asian Tech Industry?

Price-To-Earnings vs Industry: 992 is good value based on its Price-To-Earnings Ratio (4x) compared to the Asian Tech industry average (13.2x)


Price to Earnings Ratio vs Fair Ratio

What is 992's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

992 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4x
Fair PE Ratio9.4x

Price-To-Earnings vs Fair Ratio: 992 is good value based on its Price-To-Earnings Ratio (4x) compared to the estimated Fair Price-To-Earnings Ratio (9.4x).


Share Price vs Fair Value

What is the Fair Price of 992 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 992 (HK$5.37) is trading below our estimate of fair value (HK$24.42)

Significantly Below Fair Value: 992 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Lenovo Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 992's forecast earnings growth (5.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 992's earnings (5.9% per year) are forecast to grow slower than the Hong Kong market (16.8% per year).

High Growth Earnings: 992's earnings are forecast to grow, but not significantly.

Revenue vs Market: 992's revenue (3.6% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 992's revenue (3.6% 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 (28.6%)


Discover growth companies

Past Performance

How has Lenovo Group performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


49.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 992 has high quality earnings.

Growing Profit Margin: 992's current net profit margins (2.9%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 992's earnings have grown significantly by 49.3% per year over the past 5 years.

Accelerating Growth: 992's earnings growth over the past year (49.7%) exceeds its 5-year average (49.3% per year).

Earnings vs Industry: 992 earnings growth over the past year (49.7%) exceeded the Tech industry -11%.


Return on Equity

High ROE: 992's Return on Equity (39.4%) is considered high.


Discover strong past performing companies

Financial Health

How is Lenovo Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 992's short term assets ($29.1B) do not cover its short term liabilities ($33.0B).

Long Term Liabilities: 992's short term assets ($29.1B) exceed its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: 992 has more cash than its total debt.

Reducing Debt: 992's debt to equity ratio has reduced from 68% to 61.8% over the past 5 years.

Debt Coverage: 992's debt is well covered by operating cash flow (116.7%).

Interest Coverage: 992's interest payments on its debt are well covered by EBIT (17x coverage).


Balance Sheet


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Dividend

What is Lenovo Group current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


7.08%

Current Dividend Yield

Dividend Yield vs Market

Lenovo Group Dividend Yield vs Market
How does Lenovo Group dividend yield compare to the market?
SegmentDividend Yield
Company (Lenovo Group)7.1%
Market Bottom 25% (HK)3.1%
Market Top 25% (HK)9.0%
Industry Average (Tech)3.6%
Analyst forecast in 3 Years (Lenovo Group)8.9%

Notable Dividend: 992's dividend (7.08%) is higher than the bottom 25% of dividend payers in the Hong Kong market (3.01%).

High Dividend: 992's dividend (7.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.95%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.2%), 992's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.3%), 992's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Yuanqing Yang (57 yo)

24.83yrs

Tenure

US$27,292,000

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

Yuanqing Yang's Compensation vs Lenovo Group Earnings
How has Yuanqing Yang's remuneration changed compared to Lenovo Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$2b

Mar 31 2022US$27mUS$1m

US$2b

Dec 31 2021n/an/a

US$2b

Sep 30 2021n/an/a

US$2b

Jun 30 2021n/an/a

US$1b

Mar 31 2021US$28mUS$1m

US$1b

Dec 31 2020n/an/a

US$961m

Sep 30 2020n/an/a

US$824m

Jun 30 2020n/an/a

US$716m

Mar 31 2020US$25mUS$1m

US$665m

Dec 31 2019n/an/a

US$741m

Sep 30 2019n/an/a

US$715m

Jun 30 2019n/an/a

US$682m

Mar 31 2019US$15mUS$1m

US$596m

Dec 31 2018n/an/a

US$511m

Sep 30 2018n/an/a

-US$11m

Jun 30 2018n/an/a

-US$40m

Mar 31 2018US$19mUS$1m

-US$189m

Dec 31 2017n/an/a

-US$115m

Sep 30 2017n/an/a

US$272m

Jun 30 2017n/an/a

US$290m

Mar 31 2017US$19mUS$1m

US$535m

Dec 31 2016n/an/a

US$608m

Sep 30 2016n/an/a

US$810m

Jun 30 2016n/an/a

-US$60m

Mar 31 2016US$23mUS$1m

-US$128m

Compensation vs Market: Yuanqing's total compensation ($USD27.29M) is above average for companies of similar size in the Hong Kong market ($USD731.00K).

Compensation vs Earnings: Yuanqing's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 992's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: 992's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 992 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SEHK:992 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 Aug 22BuyHK$63,071,838JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany9,225,889HK$6.84
26 Aug 22SellHK$2,582,720,892JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany377,789,790HK$6.84
25 Aug 22SellHK$611,332,356JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany91,110,351HK$6.71
23 Aug 22BuyHK$60,176,514BlackRock, Inc.Company8,656,000HK$6.95
19 Aug 22BuyHK$1,548,319,285JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany216,772,412HK$7.14
19 Aug 22BuyHK$1,235,337William GrabeIndividual172,521HK$7.16
19 Aug 22BuyHK$357,166Chih-Yuan YangIndividual49,880HK$7.16
19 Aug 22BuyHK$373,742William Tudor BrownIndividual52,195HK$7.16
19 Aug 22BuyHK$284,923Gordon Robert-Halyburton OrrIndividual39,791HK$7.16
17 Aug 22BuyHK$1,254,121,541JPMorgan Chase & Co, Private Banking and Investment Banking InvestmentsCompany181,841,158HK$6.90
22 Jul 22BuyHK$21,724,239BlackRock, Inc.Company2,956,000HK$7.35
27 Jun 22SellHK$5,608,216Linan ZhuIndividual735,986HK$7.62
24 Jun 22SellHK$1,071,402Linan ZhuIndividual145,769HK$7.35
23 Jun 22SellHK$1,047,960Linan ZhuIndividual142,000HK$7.38
22 Jun 22SellHK$1,638,676Linan ZhuIndividual224,169HK$7.31
23 May 22SellHK$21,209,905BlackRock, Inc.Company2,699,766HK$7.86
27 Apr 22SellHK$13,410,120BlackRock, Inc.Company1,844,000HK$7.27
30 Mar 22SellHK$30,505,002Union Star LimitedCompany3,564,000HK$8.56
22 Mar 22SellHK$50,406,819Right Lane LimitedCompany6,307,317HK$7.99
28 Feb 22SellHK$115,234,664Union Star LimitedCompany13,200,000HK$8.73
07 Jan 22SellHK$30,671,659Yuanqing YangIndividual3,456,000HK$8.87
06 Jan 22SellHK$40,735,783Yuanqing YangIndividual4,590,000HK$8.87
05 Jan 22SellHK$66,816,955Yuanqing YangIndividual7,354,000HK$9.09
04 Jan 22SellHK$23,235,428Yuanqing YangIndividual2,600,000HK$8.94
21 Dec 21BuyHK$318,833William GrabeIndividual36,006HK$8.85
21 Dec 21BuyHK$93,119Chih-Yuan YangIndividual10,516HK$8.85
21 Dec 21BuyHK$98,707William Tudor BrownIndividual11,147HK$8.85
21 Dec 21BuyHK$75,250Gordon Robert-Halyburton OrrIndividual8,498HK$8.85

Ownership Breakdown

What is the ownership structure of 992?
Owner TypeNumber of SharesOwnership Percentage
Private Companies719,304,2485.9%
Individual Insiders790,195,9606.5%
Public Companies2,867,636,72423.6%
General Public3,334,320,55227.5%
Institutions4,416,672,80736.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 64.49% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
23.64%
Legend Holdings Corporation
2,867,636,724$15.4b0%no data
6.34%
Yuanqing Yang
769,318,089$4.1b0.32%no data
6.09%
Right Lane Limited
738,300,000$4.0b0%no data
5.93%
Union Star Limited
719,304,248$3.9b0%no data
5.03%
BlackRock, Inc.
609,905,064$3.3b0.23%0.01%
4.88%
Goldman Sachs Group, Investment Banking and Securities Investments
592,388,956$3.2b0%0.27%
2.26%
The Vanguard Group, Inc.
274,309,416$1.5b2.1%no data
0.97%
Dimensional Fund Advisors LP
117,342,444$630.1m1.89%0.02%
0.94%
Fidelity International Ltd
113,590,955$610.0m0.07%0.04%
0.84%
China Asset Management Co., Ltd.
101,598,497$545.6m0.27%0.16%
0.83%
State Street Global Advisors, Inc.
101,136,125$543.1m4.94%no data
0.83%
Norges Bank Investment Management
100,780,756$541.2m0%0.01%
0.76%
CSOP Asset Management Limited
92,481,641$496.6m5.84%2.84%
0.75%
Lazard Asset Management LLC
90,692,000$487.0m7.13%0.06%
0.69%
Eastspring Investments (Singapore) Limited
83,488,000$448.3m0%0.29%
0.62%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
75,727,731$406.7m-10.18%0.02%
0.55%
Swedbank Robur Fonder AB
66,511,393$357.2m0%0.07%
0.5%
Hang Seng Investment Management Limited
60,559,535$325.2m-1.26%0.54%
0.35%
Geode Capital Management, LLC
42,333,017$227.3m3.59%no data
0.34%
Value Partners Hong Kong Limited
41,460,000$222.6m0%0.84%
0.29%
J.P. Morgan Asset Management, Inc.
34,858,000$187.2m-66.5%no data
0.28%
Candriam Luxembourg S.A.
33,799,722$181.5m-2.06%0.09%
0.28%
Carmignac Gestion S.A.
33,521,693$180.0m-0.32%0.23%
0.25%
HSBC Global Asset Management (UK) Limited
30,197,557$162.2m1.3%0.02%
0.25%
Acadian Asset Management LLC
30,068,692$161.5m0.1%0.08%

Company Information

Lenovo Group Limited's 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
  • Implied Market Cap: HK$65.128b
  • Shares outstanding: 12.13b
  • 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)SPONSORED ADRUSUSDApr 1995
LHL1DB (Deutsche Boerse AG)SPONSORED ADRDEEURApr 1995
LHL1BST (Boerse-Stuttgart)SPONSORED ADRDEEURApr 1995

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.