China's Lenovo posts 65% rise in Q2 profit

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A Lenovo logo is seen astatine the machine successful Kiev, Ukraine April 21, 2016. REUTERS/Gleb Garanich

SHANGHAI, Nov 4 (Reuters) - China's Lenovo Group (0992.HK), the world's biggest shaper of idiosyncratic computers, reported a 65% emergence successful second-quarter nett connected Thursday and said it was capable to outgrow the marketplace by securing much components amid a planetary spot shortage.

Profit for the 4th ended Sept. 30 attributable to equity holders jumped to $512 cardinal versus $310 cardinal successful the aforesaid play a twelvemonth earlier, and Lenovo said it remained connected way towards its extremity of doubling profitability successful 3 years.

Revenue roseate 23% to $17.9 billion, somewhat supra an mean estimation of $17.3 cardinal from 9 analysts, according to Refinitiv data.

"The industry-wide constituent shortage of assorted integrated circuits (ICs) remained a concern challenge, causing delays successful bid fulfilment and important back-log orders crossed PCs, smartphones, and servers," it said successful a statement.

"The radical was capable to excel successful operational ratio by securing much proviso of components than peers to outgrow the market."

It besides said that it saw beardown income maturation successful China and America, but a diminution elsewhere successful the Asia Pacific owed to less acquisition deals successful Japan.

Growth successful worldwide PC shipments slowed successful the September 4th arsenic easing anti-virus measures and the rising availability of COVID-19 vaccines shifted user and acquisition spending distant from PCs to different priorities, according to probe consultancy Gartner said.

Lenovo retained the rubric of largest worldwide PC vendor by shipments, though its maturation slowed aft 5 consecutive quarters of treble digit growth, Gartner said. In the 3rd quarter, Lenovo's planetary marketplace stock grew 1.8% to 23.7%.

Shares successful Lenovo tumbled past period aft it abruptly withdrew its exertion for a 10 cardinal yuan ($1.55 billion) stock listing successful Shanghai, days aft it had been accepted by Shanghai's STAR Market. work much

But its Hong Kong shares are inactive up much than 70% implicit the past year, boosted by beardown request for electronics arsenic much radical enactment from home.

Reporting by Brenda Goh; Editing by Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.

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