# Lenovo Group (0992.HK)

Canonical: https://gigainvestors.com/s/0992.HK

Analysis as of: 2026-10-16T07:34:04.238Z. Financial observations: FY2000–FY2026.

Listing currency: HKD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: HKD 25.98 per share; close as of 2026-10-15.

Estimated value: low HKD 18.35 per share, central HKD 22.37 per share, high HKD 25.77 per share. Buy at or below the central value HKD 22.37 per share. Valuation as of 2026-10-16T07:34:04.238Z; scenarios are not confidence intervals.

Expected annual return: 8.9% at the stated quote. About 8.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; HK 10-year bond 4.0% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.01×

- FY2019: 0.02×

- FY2020: 0.03×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.03×

- FY2026: 0.04×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 27.1%

- Typical minus recent gross margin: 0.7 pp

- Typical gross margin (annual median): 16.1%

- Recent gross margin (lower of latest and 3-year median): 15.4%

- Years with nonpositive capital: 1

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 17.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: >100%

- FY2018: 11.9%

- FY2019: 38.2%

- FY2020: >100%

- FY2021: >100%

- FY2022: 27.1%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

- FY2026: 86.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $8.3B

- Net income, five-year total: $7.9B

- Return on incremental invested capital: 39.3%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.3 pp

- Working capital / revenue, final three-year average: 13.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 0.86×

- FY2024: 1.13×

- FY2025: 1.19×

- FY2026: 1.08×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 38.2% vs 100.1%

- Per-share earnings: -0.01 to 0.09 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.0%

- Ordinary dilution, 5-year annual growth: 2.3%

- Market cap gain: $9.7B

- Cumulative retained earnings: $5.6B

- Diluted shares, 10-year annual growth: 3.0%

- Diluted shares, 5-year annual growth: 2.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: $0.10

- Per-share value, starting three-year median: -$0.01

- Per-share value, ending three-year median: $0.09

- Buybacks concentrated in cheaper years (correlation): 0.26

- Average buyback yield: 1.7%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $1.3B

- Cumulative net income, 10 years: $11B

- ROIC, first three-year median: 38.2%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.05

- FY2018: -$0.01

- FY2019: $0.05

- FY2020: $0.05

- FY2021: $0.09

- FY2022: $0.16

- FY2023: $0.12

- FY2024: $0.08

- FY2025: $0.09

- FY2026: $0.13

### accounting: pass

- Sloan accruals: -3.9%

- Receivables to sales index (DSRI): 1.25×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.16×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.08×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.8%

- FY2018: 2.2%

- FY2019: -2.7%

- FY2020: -4.6%

- FY2021: -6.4%

- FY2022: -4.6%

- FY2023: -3.1%

- FY2024: -2.6%

- FY2025: 0.6%

- FY2026: -3.9%

## Holders

## Price story

Down 25% since Sep 2026 · "Lenovo Jumps 17% After AI Revenue Surges 84%" (finance.yahoo.com, May 2026) · sales +19.7%

Story as of 2026-10-16T09:59:58.946Z; price observation 2026-10-15.

Price needs cash profits to grow 5.1% a year for ten years

- 2025-05-22: China's Lenovo posts quarterly profit far short of estimates, shares slide ([finance.yahoo.com](https://finance.yahoo.com/news/lenovo-reports-64-profit-decline-042340295.html))

- 2026-02-12: Lenovo Posts Earnings Beat on AI-Driven Demand ([finance.yahoo.com](https://finance.yahoo.com/m/d135c9be-c9de-3d3f-9d3c-12124e8a43c3/lenovo-posts-earnings-beat-on.html))

- 2026-05-22: Lenovo Jumps 17% After AI Revenue Surges 84% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/lenovo-jumps-17-ai-revenue-131327937.html))

- 2026-08-13: China's Lenovo posts 43% jump in Q1 revenue, riding AI infrastructure boom ([finance.yahoo.com](https://finance.yahoo.com/technology/articles/chinas-lenovo-posts-43-jump-041721026.html))

### Sales · FY2025–2026

sales +19.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: $43B 

- FY2018: $45B 

- FY2019: $51B 

- FY2020: $51B 

- FY2021: $61B 

- FY2022: $72B 

- FY2023: $62B 

- FY2024: $57B 

- FY2025: $69B 

- FY2026: $83B 

### Gross margin · FY2026

gross margin 15.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 14.2% 

- FY2018: 13.8% 

- FY2019: 14.4% 

- FY2020: 16.5% 

- FY2021: 16.1% 

- FY2022: 16.8% 

- FY2023: 17.0% 

- FY2024: 17.2% 

- FY2025: 16.1% 

- FY2026: 15.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in computer hardware; annual sales are USD 82.7 billion.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2026-03-31 (filed 2026-10-16T07:34:04.238Z); FY2026: revenue 82680663000; grossProfit 12748687000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0992.HK: 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. The company offers commercial and consumer personal computers, servers and workstations, and smartphones, as well as laptops, desktops, tablets, monitors, and accessories and software. It also provides consulting, deployment, managed, support, and security services. In addition, the company manufactures and distributes IT products, computers, computer hardware, and peripheral equipment; and offers IT, business planning, management, global supply chain, finance and accounting, administration support, procurement agency, data management, intellectual property, and investment management services. Further, it is involved in the retail and service business for consumer electronic products and related digital services; development, ownership, licensing, and sale of communications hardware and software; and develops software and applications. It operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. The company was founded in 1984 and is headquartered in Quarry Bay, Hong Kong.

### Why customers stay

Margins ranged from 15.4% to 17.2% during 2024–26; it earns over 100% on its capital.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2024-03-31 (filed 2026-10-16T07:34:04.238Z); FY2024: grossProfit / revenue = 17.2%.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2025-03-31 (filed 2026-10-16T07:34:04.238Z); FY2025: grossProfit / revenue = 16.1%.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2026-03-31 (filed 2026-10-16T07:34:04.238Z); FY2026: grossProfit / revenue = 15.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:04.238Z); 10-year return on capital observations [[2017,5.073214164447027],[2018,0.11918142349216765],[2019,0.38167317458997463],[2020,1.35547051826181],[2021,33.16510119677574],[2022,0.2707307690192135],[2023,4.1861767605684825],[2024,1.510979790310346],[2025,1.0014643942766412],[2026,0.8664358111511365]]; median 1.1784674562692257. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 17% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:04.238Z); Gross margin observations: [[2021,0.16080861393619655],[2022,0.1682389714929509],[2023,0.16951776114409298]]; range within 2 percentage points.

### Where the cash goes

Reinvests 0.1% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2017-03-31 (filed 2026-10-16T07:34:04.238Z); FY2017: growth capex 0; upkeep 803454000; owner earnings 474411527. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2019-03-31 (filed 2026-10-16T07:34:04.238Z); FY2019: growth capex 0; upkeep 700821000; owner earnings 747102369. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2020-03-31 (filed 2026-10-16T07:34:04.238Z); FY2020: growth capex 0; upkeep 953080000; owner earnings 741045281. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2021-03-31 (filed 2026-10-16T07:34:04.238Z); FY2021: growth capex 0; upkeep 843750000; owner earnings 1424143606. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2022-03-31 (filed 2026-10-16T07:34:04.238Z); FY2022: growth capex 27795670; upkeep 1256285330; owner earnings 2029818000. Growth capex / owner earnings = 0.01369367598474346.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2023-03-31 (filed 2026-10-16T07:34:04.238Z); FY2023: growth capex 0; upkeep 1578146000; cash acquisitions 506877000; owner earnings 1379906646. Growth capex plus acquisitions / owner earnings = 0.36732702278759805.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2024-03-31 (filed 2026-10-16T07:34:04.238Z); FY2024: growth capex 0; upkeep 1285897000; cash acquisitions 147124000; owner earnings 1137762000. Growth capex plus acquisitions / owner earnings = 0.12930999629096418.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2025-03-31 (filed 2026-10-16T07:34:04.238Z); FY2025: growth capex 0; upkeep 1151152000; cash acquisitions 24726000; owner earnings 1652428000. Growth capex plus acquisitions / owner earnings = 0.01496343562321626.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2026-03-31 (filed 2026-10-16T07:34:04.238Z); FY2026: growth capex 0; upkeep 1256011341; cash acquisitions 3001000; owner earnings 2058381659. Growth capex plus acquisitions / owner earnings = 0.001457941478869347.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:04.238Z); Dividend observations: [[2017,376898000],[2018,380750000],[2019,404350000],[2020,437148000],[2021,445869000],[2022,495207000],[2023,580676000],[2024,583273000],[2025,608351000],[2026,609607818]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/LNVGF.US.json#2026-03-31 (filed 2026-10-16T07:34:04.238Z); FY2026: cash repurchases 562580855 USD.

### Are managers owners

Insiders own 38.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 0992.HK SharesStats.PercentInsiders = 38.629999999999995 percentage points; cache date 2026-10-16.

### What could break it

US import tariffs could raise product costs.

- Source: https://doc.irasia.com/listco/hk/lenovo/annual/2025/ar2025.pdf (filed ); mited 2024/25 Annual Report

17

 Management’s discussion & analysis
The Group’s non-HKFRS and HKFRS net profit grew 36
and 37 percent, respectively, with all three Business Groups
contributing incrementally. ISG returned to profitability in
the second half of the year after reversing earlier losses,
with a strategic focus on addressing rapidly growing cloud
demand. IDG achieved high profitability within its historical
upper range and retained industry leadership, despite an
unexpected negative tariff impact in the last part of the
fiscal year. SSG upheld a 21 percent operating margin,
contributing 

[Noncontiguous filing excerpt]

nfrastructure

PC

Group Financial Performance
The Group reported a 21 percent year-on-year sales
growth to US$69 billion, the second highest in its history.
Contributing to this was ISG’s 63 percent revenue growth,
driven by robust server orders, renewed enterprise
demand, and new customer acquisition. Meanwhile, SSG
saw a 13 percent year-on-year revenue increase to a new

Services
Others
2025
Notes:
1
Revenue before eliminations.
2
Non-PC revenue includes revenues from SSG, ISG and non-PC
part of IDG.

Lenovo Group Limited 2024/25 Annual Report

17

 Management’s discussion & analysis
The Group’s non-HKFRS and HKFRS net profit grew 36
and 37 percent, respectively, with all three Business Groups
contributing incrementally. ISG returned to profitability in
the second half of the year after reversing earlier losses,
with a strategic focus on addressing rapidly growing cloud
demand. IDG achieved high profitability within its historical
upper range and retained industry leadership, despite an
unexpected negative tariff impact in the last part of the
fiscal year. SSG upheld a 21 percent operating margin,
contributing 33 percent of the combined segment profit
across all Business Groups.

Performance by Product Business Group
Intelligent Devices Group (IDG)
IDG, encompassing PCs, tablets, smartphones, and other
smart devices, achieved a 13 percent revenue increase
and a 14 percent se

[Noncontiguous filing excerpt]

istory.
Contributing to this was ISG’s 63 percent revenue growth,
driven by robust server orders, renewed enterprise
demand, and new customer acquisition. Meanwhile, SSG
saw a 13 percent year-on-year revenue increase to a new

Services
Others
2025
Notes:
1
Revenue before eliminations.
2
Non-PC revenue includes revenues from SSG, ISG and non-PC
part of IDG.

Lenovo Group Limited 2024/25 Annual Report

17

 Management’s discussion & analysis
The Group’s non-HKFRS and HKFRS net profit grew 36
and 37 percent, respectively, with all three Business Groups
contributing incrementally. ISG returned to profitability in
the second half of the year after reversing earlier losses,
with a strategic focus on addressing rapidly grow

### What the price says

The price assumes cash profits grow 5.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:04.238Z); Ten-year compound average after fade. Initial solved rate 0.06048663489157258. Price 25.98; FX 7.84744565643883; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.028892440601310708 → FY2026 0.13972336361483395. Closing-price date 2026-10-15.

## Monthly share-price history (HKD per share)

- 2016-10: HKD 4.98 per share

- 2016-11: HKD 4.81 per share

- 2016-12: HKD 4.70 per share

- 2017-01: HKD 5.11 per share

- 2017-02: HKD 4.66 per share

- 2017-03: HKD 5.12 per share

- 2017-04: HKD 4.98 per share

- 2017-05: HKD 5.10 per share

- 2017-06: HKD 4.93 per share

- 2017-07: HKD 4.84 per share

- 2017-08: HKD 4.28 per share

- 2017-09: HKD 4.31 per share

- 2017-10: HKD 4.52 per share

- 2017-11: HKD 4.44 per share

- 2017-12: HKD 4.41 per share

- 2018-01: HKD 4.51 per share

- 2018-02: HKD 4.09 per share

- 2018-03: HKD 4.01 per share

- 2018-04: HKD 3.75 per share

- 2018-05: HKD 4.16 per share

- 2018-06: HKD 4.25 per share

- 2018-07: HKD 4.35 per share

- 2018-08: HKD 5.12 per share

- 2018-09: HKD 5.72 per share

- 2018-10: HKD 4.99 per share

- 2018-11: HKD 5.65 per share

- 2018-12: HKD 5.29 per share

- 2019-01: HKD 5.70 per share

- 2019-02: HKD 7.07 per share

- 2019-03: HKD 7.06 per share

- 2019-04: HKD 7.27 per share

- 2019-05: HKD 5.45 per share

- 2019-06: HKD 6.05 per share

- 2019-07: HKD 6.36 per share

- 2019-08: HKD 5.16 per share

- 2019-09: HKD 5.23 per share

- 2019-10: HKD 5.48 per share

- 2019-11: HKD 5.17 per share

- 2019-12: HKD 5.23 per share

- 2020-01: HKD 5.13 per share

- 2020-02: HKD 4.81 per share

- 2020-03: HKD 4.16 per share

- 2020-04: HKD 4.22 per share

- 2020-05: HKD 4.21 per share

- 2020-06: HKD 4.29 per share

- 2020-07: HKD 4.67 per share

- 2020-08: HKD 5.18 per share

- 2020-09: HKD 5.11 per share

- 2020-10: HKD 4.85 per share

- 2020-11: HKD 5.53 per share

- 2020-12: HKD 7.32 per share

- 2021-01: HKD 9.13 per share

- 2021-02: HKD 9.81 per share

- 2021-03: HKD 11.06 per share

- 2021-04: HKD 10.68 per share

- 2021-05: HKD 9.30 per share

- 2021-06: HKD 8.93 per share

- 2021-07: HKD 7.24 per share

- 2021-08: HKD 8.62 per share

- 2021-09: HKD 8.37 per share

- 2021-10: HKD 8.46 per share

- 2021-11: HKD 7.97 per share

- 2021-12: HKD 8.96 per share

- 2022-01: HKD 8.37 per share

- 2022-02: HKD 8.69 per share

- 2022-03: HKD 8.52 per share

- 2022-04: HKD 7.68 per share

- 2022-05: HKD 7.74 per share

- 2022-06: HKD 7.33 per share

- 2022-07: HKD 7.59 per share

- 2022-08: HKD 6.50 per share

- 2022-09: HKD 5.46 per share

- 2022-10: HKD 6.28 per share

- 2022-11: HKD 6.58 per share

- 2022-12: HKD 6.41 per share

- 2023-01: HKD 6.27 per share

- 2023-02: HKD 7.04 per share

- 2023-03: HKD 8.50 per share

- 2023-04: HKD 8.02 per share

- 2023-05: HKD 7.36 per share

- 2023-06: HKD 8.17 per share

- 2023-07: HKD 8.94 per share

- 2023-08: HKD 8.87 per share

- 2023-09: HKD 8.07 per share

- 2023-10: HKD 9.10 per share

- 2023-11: HKD 9.65 per share

- 2023-12: HKD 10.92 per share

- 2024-01: HKD 8.17 per share

- 2024-02: HKD 8.67 per share

- 2024-03: HKD 9.07 per share

- 2024-04: HKD 8.93 per share

- 2024-05: HKD 11.22 per share

- 2024-06: HKD 11.02 per share

- 2024-07: HKD 10.08 per share

- 2024-08: HKD 9.59 per share

- 2024-09: HKD 10.60 per share

- 2024-10: HKD 10.30 per share

- 2024-11: HKD 9.11 per share

- 2024-12: HKD 10.08 per share

- 2025-01: HKD 9.29 per share

- 2025-02: HKD 11.58 per share

- 2025-03: HKD 10.48 per share

- 2025-04: HKD 8.99 per share

- 2025-05: HKD 9.04 per share

- 2025-06: HKD 9.42 per share

- 2025-07: HKD 10.12 per share

- 2025-08: HKD 11.08 per share

- 2025-09: HKD 11.55 per share

- 2025-10: HKD 11.36 per share

- 2025-11: HKD 9.68 per share

- 2025-12: HKD 9.26 per share

- 2026-01: HKD 8.88 per share

- 2026-02: HKD 9.73 per share

- 2026-03: HKD 9.15 per share

- 2026-04: HKD 11.68 per share

- 2026-05: HKD 24.00 per share

- 2026-06: HKD 23.02 per share

- 2026-07: HKD 23.86 per share

- 2026-08: HKD 30.04 per share

- 2026-09: HKD 34.54 per share

- 2026-10: HKD 25.98 per share

## Annual estimated value (HKD per share)

- FY2017: low HKD 5.95 per share, central HKD 7.71 per share, high HKD 8.79 per share

- FY2018: low HKD 4.19 per share, central HKD 4.68 per share, high HKD 5.32 per share

- FY2019: low HKD 5.64 per share, central HKD 7.51 per share, high HKD 8.63 per share

- FY2020: low HKD 5.93 per share, central HKD 7.54 per share, high HKD 8.57 per share

- FY2021: low HKD 7.99 per share, central HKD 10.44 per share, high HKD 12.03 per share

- FY2022: low HKD 9.52 per share, central HKD 12.10 per share, high HKD 13.90 per share

- FY2023: low HKD 11.86 per share, central HKD 14.26 per share, high HKD 16.32 per share

- FY2024: low HKD 9.83 per share, central HKD 10.98 per share, high HKD 12.52 per share

- FY2025: low HKD 11.14 per share, central HKD 12.43 per share, high HKD 14.14 per share

- FY2026: low HKD 14.27 per share, central HKD 17.34 per share, high HKD 19.94 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.