Lenovo pushes expansion plan as profits remain solid
PC giant reports 30pc rise in profit in last quarter and predicts its aggressive strategies will push it closer to unseating industry leader HP
Unfazed by the sluggish global economy, Chinese technology giant Lenovo expects to further expand personal computer and smartphone sales this year after logging big gains in the quarter to June 30.
Lenovo's share price rose 6.28 per cent to finish at HK$6.60, its highest close since reaching HK$6.69 on June 22, after the company announced its April-June performance yesterday.
The world's second-largest supplier of personal computers posted a 30 per cent increase in net profit to US$141 million from a year earlier.
On a quarterly basis, net profit jumped 112 per cent from US$67 million in the three months ended March 31.
That result was better than an average forecast of US$131.2 million in a poll of 10 analysts by Thomson Reuters' I/B/E/S service.
In a conference call yesterday, Lenovo chairman and chief executive Yang Yuanqing attributed that healthy profit to balanced growth across all of the company's markets, customer segments and product lines.
Revenue climbed 35 per cent to US$8 billion from the previous year. Lenovo's core mainland market accounted for US$3.5 billion, or 44 per cent, of total worldwide sales in the quarter.