Lenovo Group Limited (HK:0992)
:0992
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Lenovo Group
(0992)
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Rating:72Outperform
Price Target:
HK$12.50
▲(18.15% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by solid financial performance (strong growth and improved profitability) tempered by negative free cash flow, plus supportive earnings-call guidance around AI-led momentum and margin improvement. Valuation is a clear positive (low P/E and strong yield), while technical signals are neutral-to-weak and do not currently confirm strong upward momentum.
Positive Factors
AI revenue growth and mix shift
AI revenue growing 72% YoY and now ~32% of sales represents a durable shift in Lenovo's revenue mix toward higher-growth, higher‑value products. This reduces reliance on cyclical consumer hardware, supports higher ASPs and opens long‑term enterprise service and solution upsell opportunities.
Negative Factors
Negative free cash flow
Negative free cash flow and an OCF-to-net-income ratio ~0.79 point to weaker cash conversion despite revenue growth. Over 2–6 months this can constrain capital allocation, limit reinvestment in growth initiatives, and increase reliance on financing if cash conversion doesn't improve.
Read all positive and negative factors
Positive Factors
Negative Factors
AI revenue growth and mix shift
AI revenue growing 72% YoY and now ~32% of sales represents a durable shift in Lenovo's revenue mix toward higher-growth, higher‑value products. This reduces reliance on cyclical consumer hardware, supports higher ASPs and opens long‑term enterprise service and solution upsell opportunities.
Read all positive factors
Lenovo Group (0992) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$131.24B
Dividend Yield4.17%
Average Volume (3M)77.37M
Price to Earnings (P/E)6.7
Beta (1Y)1.12
Revenue Growth19.18%
EPS Growth36.38%
CountryHK
Employees69,500
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.31
Shares Outstanding12,404,659,000
10 Day Avg. Volume94,859,755
30 Day Avg. Volume77,367,667
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)2.72
Price to Sales (P/S)0.24
P/FCF Ratio-321.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$12.57Price Target Upside18.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.14
Revenue Forecast (FY)HK$87.03B
Lenovo Group Business Overview & Revenue Model
Company Description
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. Th...
How the Company Makes Money
Lenovo primarily makes money by selling hardware and related services across its major business lines.
1) Device sales (PCs and smart devices): A significant portion of revenue comes from the sale of PCs (notebooks, desktops, workstations) and re...
Lenovo Group Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call emphasizes strong, broad‑based growth: record group revenue, expanding profitability, large AI revenue acceleration (now ~1/3 of sales), market share gains in PCs, record ISG and SSG performance, and sizable product and partnership momentum. Key risks acknowledged include steep memory and silicon cost inflation, supply shortages, a $285M restructuring charge tied to ISG transformation, and modeled unit declines for PCs and mobile. On balance, the positives (record results, AI-driven revenue surge, market leadership, and clear turnaround actions with targeted savings) substantially outweigh the headwinds, though management flags near‑term cost pressures and the need for execution against the ISG restructuring.Positive Updates
Record Group Revenue and Double-Digit Growth
Group revenue reached a record $22.2 billion, up 18% year‑on‑year with double‑digit revenue growth across all business groups.
Negative Updates
Significant Memory and Component Cost Inflation
DRAM costs surged (stated as +50% last quarter and then nearly doubled quarter‑over‑quarter in commentary), with additional silicon/node cost pressures—creating margin risk and potential unit demand constraints.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Group Revenue and Double-Digit Growth
Group revenue reached a record $22.2 billion, up 18% year‑on‑year with double‑digit revenue growth across all business groups.
Read all positive updates
Company Guidance
Management guided to continued double‑digit growth and improving profitability, citing record Q3 revenue of $22.2B (+18% YoY) with AI‑related revenue up ~72% YoY now ~32% of group, adjusted operating income $903M (+28% YoY), adjusted net income $589M and adjusted net margin 2.7% (adjusted net income +36% YoY ex one‑offs). IDG: ~$16B revenue (+14% YoY), PC revenue +17%, global PC share 25.3% (↑1ppt) and PC volume growth outpacing the market for 10 quarters. ISG: $5.2B (+31% YoY), $15.5B AI server pipeline, Neptune cooling revenue +300%, a $285M one‑time restructuring charge to target >$200M annualized savings over 3 years and return ISG to profitability as early as next quarter. SSG: revenue +18% YoY, operating margin ~22.5%, Managed Services & Project & Solutions = 59.9% of SSG and 4‑yr CAGR ~23.9%. Outlook: management expects mid‑single‑digit market unit declines offset by mid‑single‑digit ASP increases (mobile units down high‑single‑digits but revenue up) and said Qira‑embedded devices will begin shipping next quarter.Lenovo Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 78.45B | 69.08B | 56.86B | 61.95B | 71.62B | 60.74B |
| Gross Profit | 11.89B | 11.10B | 9.80B | 10.50B | 12.05B | 9.77B |
| EBITDA | 3.85B | 3.67B | 3.56B | 4.14B | 4.35B | 3.10B |
| Net Income | 1.48B | 1.38B | 1.01B | 1.61B | 2.03B | 1.21B |
Balance Sheet | ||||||
| Total Assets | 52.63B | 44.22B | 38.75B | 38.92B | 44.51B | 37.99B |
| Cash, Cash Equivalents and Short-Term Investments | 5.33B | 4.82B | 3.57B | 4.32B | 4.06B | 3.08B |
| Total Debt | 5.38B | 5.73B | 3.96B | 4.36B | 3.83B | 5.35B |
| Total Liabilities | 44.66B | 37.46B | 32.67B | 32.87B | 39.12B | 34.38B |
| Stockholders Equity | 7.07B | 6.07B | 5.58B | 5.59B | 4.44B | 3.56B |
Cash Flow | ||||||
| Free Cash Flow | 658.80M | -51.33M | 725.09M | 1.22B | 2.79B | 2.81B |
| Operating Cash Flow | 1.54B | 1.10B | 2.01B | 2.80B | 4.08B | 3.65B |
| Investing Cash Flow | -1.15B | -1.06B | -1.28B | -1.92B | -1.50B | -975.90M |
| Financing Cash Flow | 1.10B | 1.19B | -1.34B | -413.78M | -1.76B | -3.23B |
Lenovo Group Technical Analysis
Positive
10.58
Price Trends
9.47
Positive
9.42
Positive
10.09
Positive
Market Momentum
0.33
Negative
73.54
Negative
91.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0992, the sentiment is Positive. The current price of 10.58 is above the 20-day moving average (MA) of 9.69, above the 50-day MA of 9.47, and above the 200-day MA of 10.09, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 73.54 is Negative, neither overbought nor oversold. The STOCH value of 91.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0992.
Lenovo Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$131.24B | 6.70 | 26.43% | 4.17% | 19.18% | 36.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | HK$21.42B | 1.76 | 1.82% | ― | 19.58% | ― | |
42 Neutral | HK$72.93M | -0.59 | 927.59% | ― | -20.25% | 46.77% | |
42 Neutral | HK$428.01M | -12.55 | -23.45% | ― | 29.21% | -137.50% |
* Technology Sector Average
HK:0992
Lenovo Group
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Lenovo Group Corporate Events
Lenovo Announces Resignation of Non-Executive Director Amit Midha
Apr 16, 2026
Lenovo Group has announced that non-executive director Amit Midha will step down from the board effective April 16, 2026, citing changes in work arrangements. The company emphasized that Midha has no disagreements with the board and that there are...
Lenovo Details Board Composition and Committee Roles
Apr 16, 2026
Lenovo Group has reaffirmed the composition of its board of directors, led by chairman and chief executive officer Yang Yuanqing, and detailed the mix of executive, non-executive and independent non-executive directors overseeing the company. The ...
Lenovo Raises Fujitsu Manufacturing Cap and Renews Connected Deals
Feb 27, 2026
Lenovo Group has revised the annual spending cap under its Manufacturing Agreement with Fujitsu’s unit FIT for the year ending March 31, 2026, raising the limit to JPY 554 million from JPY 503 million to accommodate a larger-than-expected vo...
Lenovo Posts Record Quarterly Revenue as AI Business Surges
Feb 12, 2026
Lenovo reported record third-quarter revenue of US$22 billion for FY2025/26, up 18% year-on-year, with adjusted profit attributable to equity holders rising 36% to US$589 million. AI-related revenue surged 72% and now represents nearly a third of ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.