Asia300

Lenovo Group Ltd.

Hong Kong

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Jun 23, 2017
Prev close: 5.03
Jun 23, 2017
Market cap:
Market cap(USD):
55,876.53M
7,164.17M
Shares: 11,108.65M

Currency in HKD

Company profile

Market(Ticker): HKG(992)
Sector:
Industry:
Electronic Technology
Computer Processing Hardware
Full time employees: 52,000

Business summary

Lenovo Group Ltd. is an investment holding company, which engages in the developing, manufacturing, and marketing technology products and services. It operates its business through the following geographical segments: China, Asia Pacific, Europe-Middle East-Africa and Americas. Its products include personal computers, workstations, servers, storage, smart televisions, and mobile products such as smartphones, tablets, and applications. The company was founded in 1984 and is headquartered in Hong Kong.

Company background

Lenovo Group of China is the world's largest maker of personal computers. The company has recently been expanding its business in the peripheral fields, such as smartphones, tablet computers and enterprise servers, focusing on its so-called PC Plus strategy to diversify its product portfolio. The company is also stepping up efforts to develop wearable gadgets, aiming to become an all-around manufacturer in the information technology field.

Founded by Liu Chuanzhi and his colleagues, Lenovo began as a PC sales unit in 1984, when Liu was a researcher at the state-run Chinese Academy of Sciences. In the 1990s, the company started selling PCs under its own brand, building up sales by offering prices lower than those of its rivals. By the late 1990s, it had claimed the top share of the domestic PC market.

Lenovo made big strides in the global market after acquiring the PC business of U.S. technology powerhouse IBM in 2005. The company has rapidly expanded its overseas sales, helped by the global popularity of the ThinkPad brand, originally developed by IBM.

Lenovo is also known for aggressively pursuing mergers and acquisitions. In 2011, it merged its PC operations with those of Japanese IT solutions provider NEC, launching a PC joint venture in Japan. In 2014, the Chinese company bought the Motorola's smartphone business from U.S. search giant Google.

Chinese investment company Legend Holdings, which Liu heads, holds slightly more than 30% of Lenovo's outstanding shares. Lenovo is also known for its close ties with the Chinese government, a relationship that has been a source of Internet security concerns in the U.S. and Europe. Ensuring management transparency is seen as a main challenge facing the company as it grows.

In the news

Financial highlights

Mar 2017

  • Local currency
  • US Dollar
Revenue 333,905.19M
Gross profit 42,805.75M
Operating income 3,014.83M
Income before tax 3,635.20M
Net income 4,151.70M
EBITDA 8,772.81M
Diluted EPS 0.37
Dividends per share 0.26
Total assets 211,275.79M
Total liabilities 185,262.10M
Total equity 25,052.21M
Operating cash flow 16,963.36M

Currency in HKD

Revenue 43,034.72M
Gross profit 5,516.93M
Operating income 388.56M
Income before tax 468.51M
Net income 535.08M
EBITDA 1,130.66M
Diluted EPS 0.04
Dividends per share 0.03
Total assets 27,185.97M
Total liabilities 23,838.65M
Total equity 3,223.60M
Operating cash flow 2,186.29M

Currency in USD

Valuation measures

Mar 2017

PER 13.57
ROA 2.05%
ROE 17.18%
Operating margin 0.90%
Profit margin 1.24%

Key executive

  • Chairman & Chief Executive Officer: Yuan Qing Yang
  • President & Chief Operating Officer: Gianfranco Lanci
  • Chief Financial Officer & Executive Vice President: Wai Ming Wong
  • Chief Information Officer: Arthur Hu
  • Chief Technology Officer & Senior Vice President: Yong Rui

Share holders

  • Legend Holdings Corp.(31.4%)
  • YANG YUAN QING(6.3%)
  • The Vanguard Group, Inc.(2.0%)
  • BlackRock Advisors LLC(1.6%)
  • BlackRock Investment Management LLC(1.4%)
  • Matthews International Capital Management LLC(1.1%)
  • BlackRock Fund Advisors(1.1%)
  • JF Asset Management Ltd.(0.8%)
  • Hang Seng Investment Management Ltd.(0.7%)
  • Skagen AS(0.7%)

Address

  • Website: http://www.lenovo.com
  • Address: 23rd Floor, Lincoln House, Taikoo Place, 979 King's Road, Hong Kong, Hong Kong
  • Phone: +852.2590.0228

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