Rhea-AI Impact
Rhea-AI Sentiment
Rhea-AI Summary
Lenovo Group reported strong Q2 FY2024/25 results with revenue increasing 24% year-on-year to US$17.9 billion. Net income rose 48% to US$404 million on a non-HKFRS basis. The company’s Intelligent Devices Group (IDG) achieved revenue of US$13.5 billion, up 17% year-on-year, while Infrastructure Solutions Group (ISG) revenue grew 65% to US$3.3 billion. Solutions and Services Group (SSG) maintained double-digit growth for the 14th consecutive quarter, reaching US$2.2 billion with a 20% operating margin. The company’s AI PC initiative showed success in China, reaching double-digit share of notebook shipments.
Lenovo Group ha riportato risultati forti per il secondo trimestre dell’anno fiscale 2024/25, con un aumento del fatturato del 24% su base annua, arrivando a 17,9 miliardi di dollari USA. L’utile netto è salito del 48% a 404 milioni di dollari USA su base non conforme agli HKFRS. Il Gruppo Dispositivi Intelligenti (IDG) ha raggiunto un fatturato di 13,5 miliardi di dollari USA, registrando un incremento del 17% rispetto all’anno precedente, mentre il fatturato del Gruppo Soluzioni per le Infrastrutture (ISG) è cresciuto del 65%, arrivando a 3,3 miliardi di dollari USA. Il Gruppo Soluzioni e Servizi (SSG) ha mantenuto una crescita a due cifre per il 14° trimestre consecutivo, raggiungendo 2,2 miliardi di dollari USA con un margine operativo del 20%. L’iniziativa AI PC dell’azienda ha mostrato successo in Cina, conquistando una quota a due cifre delle spedizioni di notebook.
Lenovo Group reportó resultados sólidos para el segundo trimestre del año fiscal 2024/25, con un aumento del 24% en los ingresos interanuales, alcanzando 17,9 mil millones de dólares estadounidenses. El ingreso neto creció un 48% a 404 millones de dólares estadounidenses bajo una base no HKFRS. El Grupo de Dispositivos Inteligentes (IDG) logró ingresos de 13,5 mil millones de dólares estadounidenses, un aumento del 17% interanual, mientras que los ingresos del Grupo de Soluciones de Infraestructura (ISG) crecieron un 65% a 3,3 mil millones de dólares estadounidenses. El Grupo de Soluciones y Servicios (SSG) mantuvo un crecimiento de dos dígitos durante el 14º trimestre consecutivo, alcanzando 2,2 mil millones de dólares estadounidenses con un margen operativo del 20%. La iniciativa de PC AI de la compañía mostró éxito en China, logrando una participación de dos dígitos en los envíos de portátiles.
레노버 그룹은 2024/25 회계연도 2분기 실적을 발표하며, 전년 대비 매출이 24% 증가하여 179억 달러에 도달했다고 보고했습니다. 순이익은 비-HKFRS 기준으로 48% 증가하여 4억 4백만 달러를 기록했습니다. 지능형 디바이스 그룹(IDG)은 전년 대비 17% 증가한 135억 달러의 매출을 달성했으며, 인프라 솔루션 그룹(ISG)의 매출은 65% 증가하여 33억 달러에 이르렀습니다. 솔루션 및 서비스 그룹(SSG)은 14분기 연속 두 자릿수 성장을 유지하며, 22억 달러에 도달하고 20%의 운영 마진을 기록했습니다. 회사의 AI PC 이니셔티브는 중국에서 성공을 거두어 노트북 출하량의 두 자릿수 점유율에 도달했습니다.
Lenovo Group a présenté des résultats solides pour le deuxième trimestre de l’exercice 2024/25, avec une augmentation du chiffre d’affaires de 24% d’une année sur l’autre, atteignant 17,9 milliards de dollars américains. Le bénéfice net a augmenté de 48%, atteignant 404 millions de dollars américains sur une base non HKFRS. Le Groupe des Dispositifs Intelligents (IDG) a obtenu un chiffre d’affaires de 13,5 milliards de dollars américains, en hausse de 17% par rapport à l’année précédente, tandis que le chiffre d’affaires du Groupe des Solutions d’Infrastructure (ISG) a augmenté de 65%, atteignant 3,3 milliards de dollars américains. Le Groupe des Solutions et Services (SSG) a maintenu une croissance à deux chiffres pour le 14ème trimestre consécutif, atteignant 2,2 milliards de dollars américains avec une marge opérationnelle de 20%. L’initiative de PC AI de l’entreprise a rencontré un succès en Chine, atteignant une part à deux chiffres des expéditions de portables.
Lenovo Group berichtete über starke Ergebnisse im 2. Quartal des Geschäftsjahres 2024/25, mit einem Umsatzanstieg von 24% im Jahresvergleich auf 17,9 Milliarden US-Dollar. Der Nettogewinn stieg um 48% auf 404 Millionen US-Dollar auf einer nicht-HKFRS-Basis. Die Intelligent Devices Group (IDG) erzielte einen Umsatz von 13,5 Milliarden US-Dollar, was einem Anstieg von 17% im Jahresvergleich entspricht, während der Umsatz der Infrastructure Solutions Group (ISG) um 65% auf 3,3 Milliarden US-Dollar wuchs. Die Solutions and Services Group (SSG) hielt das Wachstum im zweistelligen Bereich im 14. Quartal in Folge aufrecht und erreichte 2,2 Milliarden US-Dollar mit einer operativen Marge von 20%. Die KI-PC-Initiative des Unternehmens verzeichnete in China Erfolge und erreichte einen zweistelligen Anteil an den Notebook-Lieferungen.
Positive
- Revenue increased 24% YoY to US$17.9 billion
- Net income up 48% YoY to US$404 million
- PC market share expanded to 24%, widening lead over competitors
- ISG revenue grew 65% YoY to US$3.3 billion
- SSG maintained 20% operating margin
- R&D investment increased 10% YoY to US$548 million
Negative
- ISG segment still operating at a loss, though narrowing
Lenovo delivers robust, sustainable, and accelerated growth – focus on hybrid AI driving market differentiation and industry leadership
HONG KONG–(BUSINESS WIRE)– Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries (‘the Group’), today announced Q2 results for fiscal year 2024/25, reporting significant increases and growth in net income, year-on-year revenue growth for the 4th consecutive quarter, and strong double-digit year-on-year revenue increases from all its business groups. Group revenue increased 24% year-on-year to US$17.9 billion. Net income was up 48% year-on-year to US$404 million on a non-Hong Kong Financial Reporting Standards (non-HKFRS)[1] basis, and non-PC revenue mix was up five points year-to-year to 46%. The Group’s results reflect its clear strategy, operational excellence, investment in R&D, innovations in hybrid AI, and global footprint.
The Group’s hybrid AI strategy and years of continuous investment in R&D and innovations are paying off, with its first phase of AI PCs, launched in China in May 2024, already reaching double digit share of its total notebook shipments in the China market. Recent launches of AI PCs for the global market with Lenovo AI Now have also been received positively. For enterprise AI, the Group is leveraging its full-stack hybrid infrastructure as well as Lenovo Hybrid AI Advantage to capture growth opportunities. This relentless focus on AI innovation as well as investment in R&D (up 10% year-on-year to US$548 million) is firmly establishing the Group’s market differentiation and industry leadership.
Looking ahead to growth, Lenovo will drive continued innovation in hybrid AI to further accelerate growth and profitability increases and is optimistic its current momentum will continue through the rest of the fiscal year.
Lenovo’s Board of Directors declared an interim dividend of 8.5 HK cents per share.
Chairman and CEO quote – Yuanqing Yang:
“Last quarter, we achieved strong, sustainable, and accelerated growth, marking another period of revenue expansion across all business groups. This significant momentum is driven by our clear strategy, innovation investment, operational excellence, and global presence, as well as our commitment to hybrid AI, where we are further strengthening our market differentiation and industry leadership. As we look ahead, we are confident that our ongoing innovation advancements in hybrid AI will continue to accelerate growth and profitability, propelling us forward for the rest of the fiscal year.”
Financial Highlights:
|
|
Q2 FY 24/25 US$ millions |
Q2 FY 23/24 US$ millions |
Change
|
|
Group Revenue |
17,850 |
14,410 |
24% |
|
Pre-tax income |
473 |
358 |
32% |
|
Net Income (profit attributable to equity holders) |
359 |
249 |
44% |
|
Net Income (profit attributable to equity holders – non-HKFRS) [1] |
404 |
273 |
48% |
|
|
|||
|
Basic earnings per share (US cents) |
2.92 |
2.09 |
0.83 |
Intelligent Devices Group (IDG): Significant growth and leading profitability, accelerating in personal AI
Q2 FY24/25 performance:
- IDG delivered a strong quarter of double-digit year-on-year revenue growth with revenue of US$13.5 billion, up 17% year-on-year.
- The PC business expanded its market leadership to almost 24% market share, widening the lead to the number two player to four points and with AI PCs reaching double digit share of total notebook shipments for the Group in the China market.
- Both the smartphone and tablet businesses delivered high double-digit revenue growth, up 43% and 19% year-on-year respectively, with hypergrowth for smartphones in North America, EMEA and Asia Pacific markets.
Opportunities and Sustainable Growth:
- The PC market is expected to steadily recover and enter a new refresh cycle driven by AI PCs, gradually growing to represent around 80% of the PC industry landscape by 2027.
- The new development of AI technologies is also expected to drive a refresh in the smartphone market.
- IDG will continue to leverage its five-feature AI PCs to establish leadership in the AI PC market, while at the same time building a richer AI device portfolio.
Infrastructure Solutions Group (ISG): Hypergrowth, building hybrid AI infrastructure
Q2 FY24/25 performance:
- Driven by strong cloud momentum and recovering enterprise business, ISG set a new quarterly record, increasing revenue 65% year-on-year to US$3.3 billion.
- Operating losses continued to narrow, with the business group on track to breakeven.
- Combined revenue from storage, software and services grew 35% year-on-year to a record high. Revenue from ISG’s Lenovo Neptune TM liquid-cooled servers grew 48% year-on-year.
Opportunities and Sustainable Growth:
- ISG will continue to strengthen the enterprise and SMB business model, including simplifying portfolios and improving operations, as well as diversifying Cloud Service Provider customers.
- It will continue to build differentiation with its industry-leading liquid cooling technology to meet the increasing performance and energy efficiency demands of AI workloads.
- In addition, ISG will continue to grow key strategic partnerships to develop hybrid AI infrastructure solutions.
Solutions and Services Group (SSG): High margin and double-digit growth, building hybrid AI Advantage
Q2 FY24/25 performance:
- SSG extended its double-digit revenue growth streak to 14 straight quarters, with revenue of US$2.2 billion and an operating margin of 20%.
- Revenue mix from managed services and project and solutions services grew three points year-on-year to account for nearly 60% of SSG’s revenue.
- Hero offerings such as Digital Workplace Solutions, Hybrid Cloud, and Sustainability Solutions also delivered strong growth.
Opportunities and Sustainable Growth:
- The global IT services market is expected to see steady double-digit growth over the next three years, with AI services growing more than twice as fast as the market to become the primary driver of the IT services market.
- Lenovo will continue to embed AI in its key offerings, such as Digital Workplace Solutions, Hybrid Cloud and Sustainability solutions.
- SSG will develop more AI native services for customers to adopt AI use cases and capture hybrid AI opportunities.
ESG and corporate highlights
Achievements, announcements, and notable commitments over the past quarter include:
[1] Non-HKFRS measure was adjusted by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, mergers and acquisitions related charges, impairment of intangible assets; and the corresponding income tax effects, if any.
About Lenovo
Lenovo is a US$57 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world’s largest PC company with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo’s continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.
|
LENOVO GROUP LIMITED |
||||
|
FINANCIAL SUMMARY |
||||
|
For the quarter ended September 30, 2024 |
||||
|
(in US$ millions, except per share data) |
||||
|
|
|
|
|
|
|
Revenue |
|
17,850 |
14,410 |
24% |
|
Gross profit |
|
2,796 |
2,522 |
11% |
|
Gross profit margin |
|
15.7% |
17.5% |
(1.8) pts |
|
Operating expenses |
|
(2,145) |
(2,008) |
7% |
|
R&D expenses |
|
(548) |
(498) |
10% |
|
Expenses-to-revenue ratio |
|
12.0% |
13.9% |
(1.9) pts |
|
Operating profit |
|
651 |
514 |
27% |
|
Other non-operating income/(expenses) – net |
|
(178) |
(156) |
13% |
|
Pre-tax income |
|
473 |
358 |
32% |
|
Taxation |
|
(90) |
(69) |
31% |
|
Profit for the period |
|
383 |
289 |
33% |
|
Non-controlling interests |
|
(24) |
(40) |
(38)% |
|
Profit attributable to equity holders |
|
359 |
249 |
44% |
|
Profit attributable to equity holders- non-HKFRS [1] |
|
404 |
273 |
48% |
|
EPS (US cents) |
|
2.92 |
2.09 |
0.83 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241114306608/en/
Hong Kong – Angela Lee, angelalee@lenovo.com, +852 2516 4810
London – Charlotte West, cwest@lenovo.com, +44 7825 605720
Zeno Group – LenovoWWcorp@zenogroup.com
Source: Lenovo Group Limited
FAQ
What was Lenovo’s (LNVGY) revenue growth in Q2 FY2024/25?
Lenovo’s revenue grew 24% year-over-year to US$17.9 billion in Q2 FY2024/25.
What is Lenovo’s (LNVGY) market share in the PC business?
Lenovo expanded its PC market leadership to almost 24% market share, with a four-point lead over the second-place competitor.
How much did Lenovo (LNVGY) invest in R&D in Q2 FY2024/25?
Lenovo invested US$548 million in R&D during Q2 FY2024/25, representing a 10% increase year-over-year.
What was Lenovo’s (LNVGY) net income in Q2 FY2024/25?
Lenovo’s net income increased 48% year-over-year to US$404 million on a non-HKFRS basis.
