Jinwu Financial News | According to SDIC Securities Research, Lenovo Holdings (03396) achieved revenue of 436 billion yuan (YoY -10%) and net profit of 3.9 billion yuan (same period last year: 1.2 billion yuan) for the full year of 2023. The main causes of net profit loss: 1) Net profit attributable to mother in the industrial operation sector was 1.7 billion yuan, of which Lenovo Group contributed 2.2 billion yuan of net profit year over year, mainly affected by weak demand in the PC market; Lianhong Group contributed 300 million yuan in net profit year over year, mainly affected by falling EVA market prices. 2) Net profit from the industrial incubation and investment sector was 3.2 billion yuan year-on-year, mainly affected by capital market fluctuations, the tightening pace of IPOs, and the slowing progress of holdings reduction.
According to the bank, in 2023, the company's industrial incubation and investment sector achieved revenue of 4.4 billion yuan (YoY +8%) and net profit to mother of 5.6 billion yuan (same period last year: -2.3 billion yuan), mainly affected by various factors such as capital market fluctuations, the pace of IPOs, and the progress of financial investment holdings reduction. The company adheres to “scientific and technological innovation” as its strategic leadership. Up to now, the company has laid out more than 200 AI industry chain enterprises
The bank maintains a buy-A investment rating. The company's performance in 2023 is under pressure, mainly due to changes in the industry cycle and capital market fluctuations. It is expected to improve marginally in the future as the external environment improves. The bank expects the company's 2024-2026 EPS to be $0.91, $1.03, and $1.26, respectively. The corresponding 6-month target price is HK$6.36 (converted exchange rate).