Print

Mail

wiki links

Lenovo's results disappoint investors

China's largest computer maker Lenovo Ltd (聯想) reported yesterday a 13.45 percent increase in first-half net profit, boosted by the contribution from its personal computer unit -- which it recently acquired from IBM Corp -- but its shares slumped over 7 percent by the market's close.

Lenovo reported a net profit of HK$711 million (US$91.2 million) in the six months to September, compared with HK$627 million a year earlier.

The company said sales jumped to HK$48.11 billion during the half-year period from HK$11.53 billion. Operating profits rose to HK$1.17 billion from HK$645 million.

However, investors reacted negatively as profit in the first half was near the low end of market forecasts. The stocks closed 7.24 percent lower to HK$3.525.

"Many investors were disappointed because its profit came at the low end of market expectations," said Wong Chi Man, analyst at China Everbright Securities.

"People are still in the dark, [on whether] its lower-than-expected profit was due merely to a one-off item or pressures on its profit margin, he added.

Lenovo, the world's third-biggest PC maker, attributed the second-quarter profit increase to the 13 percent rise in PC shipments after the acquisition of IBM's PC unit. The company highlighted strong growth in emerging markets including China and India, with revenue and volume in both places outpacing the overall PC industry.
This story has been viewed 1452 times.