Lenovo Group (HKSE: 992) (ADR: LNVGY) recently announced record fiscal quarter results for the Group. The opportunities for Lenovo Group were created by accelerated digitalisation, intelligent transformation and IT upgrades in devices, infrastructure, and applications around that world continue to fuel Lenovo Group’s long term and sustainable profitability increases.<\/p>\n
This report and findings would interest investors (both institutional and personal investors) as well as those covering technology news (consumer and enterprise) on their growth, expansion plans and the sectors that they are interested in. What does the future lies for Lenovo Group, where do they see the opportunities for growth and which sectors are they looking at?<\/p>\n
Looking ahead, Lenovo Group sees continued opportunities for sustainable growth and profitability improvements across its business in areas such as:<\/p>\n
Innovation will continue to help drive profitable, sustainable growth. They have increased R&D expense in the first quarter by 40% year-on-year<\/span>, Lenovo will further invest in innovation and double its R&D investments over the next three years<\/span>.<\/p>\n This quarter is the first time the company is reporting under the new business group structure of Solutions and Services Group (SSG), Infrastructure Solutions Group (ISG), and Intelligent Devices Group (IDG) that was announced earlier this year.<\/p>\n Financial Highlights:<\/b><\/span><\/p>\n US$ millions <\/span><\/td>\n US$ millions <\/span><\/td>\n Chairman and CEO quote \u2013 Yuanqing Yang: <\/b><\/span><\/p>\n \u201cThe accelerated digital and intelligent transformation has created significant market opportunities globally. Lenovo is successfully seizing these as we transform from a device company to a services and solutions provider. The proof is in our performance – this quarter alone we\u2019ve doubled profitability year-on-year while net income margin reached the highest in many years,\u201d said Yuanqing Yang, Lenovo Chairman and CEO. \u201cGoing forward, we will continue to increase R&D investment, aiming to double it over the next three years; we will further improve our operational excellence; and we remain committed to green innovation and corporate citizenship to achieve long-term sustainable profitability increases.\u201d<\/em><\/p>\n Solutions and Services Group (SSG): driving increased Group profitability in rapid growth sectors<\/b><\/span><\/p>\n The industry is transforming with customers needing more sophisticated IT services, creating huge opportunities for solution services and managed services<\/span>, including the subscription-based as-a-Service model. It\u2019s estimated that the IT services market will be worth over US$1 trillion through 2025.<\/p>\n Q1 performance: <\/i><\/p>\n Looking ahead: <\/i><\/p>\n Infrastructure Solutions Group (ISG): accelerating profitability and significantly outgrowing the market quarter after quarter <\/b><\/span><\/p>\n ICT infrastructure is the foundation to digital and intelligent transformation, with ICT infrastructure predicted to be a near US$250 billion market through 2025<\/span>. After investing in building a strong foundation, Lenovo is well positioned as a \u201cfull-stack\u201d ICT provider.<\/p>\n Q1 performance: <\/i><\/p>\n Looking ahead: <\/i><\/p>\n Intelligent Devices Group (IDG): record profit, further growing non-PC businesses <\/b><\/span><\/p>\n The pandemic has changed how people live and work, with PCs returning to the center of digital lives<\/span>. The PC refreshment cycle has shortened, the penetration rate has increased and the total PC demand until 2025 will at least remain at current levels, with commercial demand rebounding quickly. At the same time, the IoT market is expected to surge by 11% CAGR through 2025<\/span>. And new opportunities in non-PC businesses are growing rapidly.<\/p>\n Q1 performance: <\/i><\/p>\n Looking ahead: <\/i><\/p>\n Operational highlights and investing for the future <\/b><\/span><\/p>\n * Information courtesy of Lenovo Singapore and WE Communications *<\/p>\n","protected":false},"excerpt":{"rendered":" Lenovo Group: First Quarter Results 2021\/22<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[10,2493,15,24,23,13,25,12,1,274],"tags":[102,1343,1348,3546,5657,3563,1611,4661,95,1346,37,1352,1642,185,40,1609,3706,38,5013,5661,5662,5654,5656,5655,5660,5663,5653,5664,5666,5667,5659,5014,5665,1345,5658,186,3950,35,627,1381,33,1339,29,1355,1606,3270,4612,2274],"jetpack_publicize_connections":[],"yoast_head":"\n\n\n
\n <\/td>\n Q1 21\/22 <\/b><\/span><\/p>\n Q1 20\/21 <\/b><\/span><\/p>\n Change<\/b><\/span><\/td>\n<\/tr>\n \n Group Revenue <\/b><\/span><\/td>\n 16,929<\/span><\/td>\n 13,348<\/span><\/td>\n 27%<\/span><\/td>\n<\/tr>\n \n Pre-tax income<\/b><\/span><\/td>\n 650<\/span><\/td>\n 332<\/span><\/td>\n 96%<\/span><\/td>\n<\/tr>\n \n Net Income (profit attributable to equity holders)<\/b><\/span><\/td>\n 466<\/span><\/td>\n 213<\/span><\/td>\n 119%<\/span><\/td>\n<\/tr>\n \n Basic earnings per share (US cents)<\/b><\/span><\/td>\n 4.02<\/span><\/td>\n 1.80<\/span><\/td>\n 2.22<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n
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