HONG KONG, May 27 (Reuters) - China's Lenovo Group
on Thursday posted a better-than-expected rise of 512% in
fourth-quarter profit as more people working and studying from
home powered demand for the world's biggest maker of personal
Profit for the quarter that ended on March 31 jumped to $260
million, above an average estimate of $204.7 million from seven
analysts, according to Refinitiv data.
Revenue rose 48% to $15.63 billion from $10.58 billion a
year earlier. Analysts expected revenue of $14.33 billion.
"We had the strongest quarter last quarter, actually we
haven't seen such growth in almost a decade," said Yang
Yuanqing, chairman of Lenovo, in an interview with Reuters on
Thursday after the results were announced.
Yang said growth would be sustainable even when people are
returning to offices in some parts of the world, as the pandemic
has changed people's behavior.
"Now everybody wants to have a PC for themselves. If you
have three kids, you need three PCs for them to study," he said.
Also, business in China was strong, he said.
Lenovo said in a statement its board recommended a final
dividend of 24 Hong Kong cents per share for the year ended
March 31. In 2020, it paid 21.5 cents per share.
Yang said Lenovo was "in better shape" despite a worldwide
shortage of chips, mainly driven by the stronger-than-expected
demand for PCs, tablets, and electronic cars, and it would
continue to grow and outperform the market due to its unique
hybrid supply chain model of sourcing from both inhouse
manufacturing and outsourcing.
"For the large companies, if they can buy chips, they will
buy ... I think this decision is right, because the shortage
will last at least three or four more quarters," he said.
According to research firm Gartner, worldwide shipments of
personal computers rose nearly a third in the March quarter,
following a weak 2020 base, the fastest year-over-year growth
since Gartner began tracking the PC market two decades ago.
Lenovo strengthened its lead in PCs with a quarter of share
of the market, ahead of HP Inc with 21.4% and Dell
Technologies with 16.5%, Gartner said.
(Reporting by Pei Li; Editing by Devika Syamnath, Robert