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LENOVO GROUP Targets NPM Above 5% in 3-5 Yrs; Valuation Re-rating Potential Remains
2026-06-26 11:21:41 LENOVO GROUP (00992.HK) held its Investor Day yesterday (25th). Group CFO Winston Cheng forecasts the company to achieve a net profit margin of above 5% within three to five years. Over the longer term, as all business segments grow in full force, the overall net margin is expected to exceed 8%. Specifically, within one to two years, Lenovo targets annual revenue of USD100 billion, a net margin of above 3%, and EPS growth of 1.5x. Within three to five years, it aims for annual revenue of USD130 billion, a net margin of above 5%, and EPS growth of 3.2x. Beyond five years, the company targets annual revenue of USD150 billion, a net margin of above 8%, and EPS growth of 5.9x. Cheng said Lenovo’s future focus will not only be on expanding revenue scale, but also on continuously improving margins and EPS performance. With enhanced profitability from AI devices, AI infrastructure and AI services, Lenovo’s valuation should no longer be confined to the PC peer framework. Instead, it should be re-rated based on a diversified business portfolio, corresponding to a combined valuation pool of approximately USD223 billion, or about RMB1.51 trillion, equivalent to around 5.7x the company’s current market capitalization benchmark. Valuation re-rating potential therefore remains. ~ AASTOCKS Financial News Website: www.aastocks.com | |