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<Research>UBS Predicts Rising Memory Prices to Impact LENOVO GROUP, Keeps Rating as Neutral
Recommend 10 Positive 11 Negative 4 |
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According to a UBS research report, LENOVO GROUP (00992.HK)'s 3QFY26 sales grew by 9% QoQ or 18% YoY to USD22.2 billion, beating both the broker's and the market's expectations by 5%, primarily due to double-digit YoY growth in core business sales. Driven by the operating leverage of the PC and device business, as well as the continued growth of the Solutions and Services Group (SSG), LENOVO GROUP's GPM and operating profit margin reached 15.1% and 4.3% respectively, exceeding UBS' expectations. UBS forecasts that the average selling prices of DDR and NAND memory will increase by 159% and 98% respectively this year, while LENOVO GROUP's PC and smartphone shipments will decline by 9% and 8% YoY, more conservative than management's guidance. Believing that price hikes will offset the impact of shipment declines, the broker projects PC and smartphone sales to rise by 13% and 16% respectively in FY27. UBS has kept a Neutral rating on LENOVO GROUP, with an unchanged target price of HKD9.5. AAStocks Financial News |
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