Equity Analysis /
Hong Kong

HK : Lenovo Group - PC sales continue to lead earnings growth

    Ray Kwok
    Ray Kwok

    Technology Analyst

    15 January 2021
    Published byCGS-CIMB

    Lenovo is benefitting from robust PC demand as people stay at home amid the Covid-19 pandemic. The PC segment will continue lead to Lenovo’s earnings growth due to strong shipment growth and rising PBT margin, thanks to rising services revenue. We reiterate Add, with a higher TP HK$11.68, based on CY22F P/E. We raise FY21F/22F/23/F EPS forecasts by 26%/31%/45% on higher PC sales.