- Lenovo Group designs, manufactures, and sells consumer electronics, software, business solutions, and other services.
- Management expects to make a considerable amount of money from new sophisticated IT services.
- The company expects to enjoy tablet revenue growing at 20% y/y and accessory sales growth of 31% y/y.
- I would expect a gradual increase in the FCF margin and EBITDA margin because management promised to focus on high margin businesses in a recent press release.
- In my view, if leverage continues to decline, the financial risk would diminish significantly, which would lead to an appreciation of the company’s fair price.
For further details see:
If Lenovo Meets The Expectations, The Company Remains A Top Pick