Covid demand pumps Lenovo to US$213m

Lenovo Group (0992) said its net profit rose 31.2 percent to US$213 million (HK$1.66 billion) for the quarter ended June, beating estimates, as the world's biggest personal computer maker saw increasing demand thanks to work-from-home and study-from-home trends amid the Covid-19 pandemic. Revenue...

Avery Chen

Friday, August 14, 2020

Lenovo Group (0992) said its net profit rose 31.2 percent to US$213 million (HK$1.66 billion) for the quarter ended June, beating estimates, as the world's biggest personal computer maker saw increasing demand thanks to work-from-home and study-from-home trends amid the Covid-19 pandemic.
Revenue rose 7 percent to US$13.35 billion for the three months ended June. Revenue from PC and smart devices grew 10.1 percent year-on-year to US$10.6 billion. Its data center business reported an 18.9 percent revenue growth to US$1.61 billion.
Lenovo expects its business will continue to benefit from Covid-19-driven new normal in the next few quarters. Chairman and chief executive Yang Yuanqing projects remote working and online education will be a long-term trend, even after the pandemic.
The emerging market is expected to be a new revenue driver of its PC business, as smartphones are not enough to support remote education and working, Yang said.
Yang said multinational companies definitely will be affected by increasing tensions between China and the United States, but the group will not change its global development strategy or spinoff of its US business.