[ET Net News Agency, 13 April 2018] HSBC Global Research cut its target price for
Lenovo Group (00992) to HK$4.1 from HK$4.5, and reiterated its "hold" rating.
The research house said Lenovo's Mobile business turnaround is yet to be seen in FY2019.
It thinks Lenovo faces a dilemma between growth and profitability. Aggressive efforts for
market expansion are likely to lead to wider loss before benefits from economies of scale
can be seen.
Data Center BU (DCG)'s FY3Q 2018 operational PTI margin saw further improvement q-q
though it is still at -4.6%. HSBC believes higher Opex for new product development
(hyperscale and software defined infrastructure, AI, cloud, etc.) is still needed to
support transition from traditional server business.
It cut FY2019-20 net profit by 15% and 2% (sharper EPS cut of 21% and 9% to US4.01 cents
and US5.22 cents due to new rights issue at end-2017) to reflect margin contraction and
increased Opex. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00992 LENOVO GROUP
Nominal 
9.390 +0.010 (+0.107%) Others
13/04/2018 14:48
[I-bank focus]HSBC cuts Lenovo Group (00992) to HK$4.1
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