The company reported mid-term results for the 2021 fiscal year 2022, with operating revenue of $34.798 billion, up 25 per cent year-on-year, and net profit of $978 million, up 87 per cent year-on-year.
All three businesses have maintained rapid growth. After the organizational restructuring, the company divided the business into three parts: smart device Business Group (IDG) grew 24% year-on-year in the first half of the year, achieving operating income of $30.005 billion; Infrastructure Solutions Business Group (ISG) grew 24% year-on-year in the first half of the year, achieving operating income of $3.803 billion Programme Services Business Group (SSG) grew 33% in the first half of the year compared with the same period last year, with operating income of US $2.548 billion and total revenue internally offset by US $1.557 billion.
With the continuous upgrading of products, the growth rate of notebooks remains the first. At Lenovo Innovation Conference, the company launched a series of high-end Yoga products such as TruScale as a service brand, enhanced edge cloud product portfolio, Lenovo artificial intelligence (AI) brain, enterprise artificial intelligence edge platform ThinkEdge and Lenovo YogaSlim7. According to Strategy Analytics,2021 's annual Q3, Lenovo shipped 15.3 million notebook computers, an increase of 5% over the same period last year, keeping notebook shipments first.
Mobile phones are starting to turn a profit, and data centers are reducing losses. In the second quarter, Lenovo made a profit of 600 million yuan in its mobile phone business, reduced its loss in its data center business to $6 million, and continued to fill undelivered orders in its PC business. At the same time, the proportion of sales of the company's high-end PC, servers and other products has increased, and the operation of each business has remained good.
Investment advice: in the long run, the software and service business is expected to improve the company's anti-cyclical performance, the company's business lines continue to maintain a good trend of development. The company's performance continued to exceed our expectations, and we expect the company's EPS for fiscal year 2021-2022 to be $0.15 and $0.18, respectively, maintaining a buy rating.
Risk hints: PC market competition intensifies; mobile phone business progress falls short of expectations; solution services fall short of expectations