Not only Lenovo, which sells computers, but also what's new?

source | Mantis observation

writing  |  Ye Xiaoan

“ The cycle always wins at the end , Because it is eternal ”, American investment master Howard · Max once said . It's about people 、 Enterprises and even everything can not get rid of the impact of the cycle on themselves . For those enterprises in cyclical industries , A sustained linear rise is obviously unrealistic , How to maintain long-term growth , It is a difficult problem that everyone has been thinking about .

PC market , This typical cyclical market , Affected by the global economic situation 、 Per capita disposable expenditure 、 Epidemic situation, etc 、 The influence of micro factors , Demand will fluctuate like a wave curve . Third party data display ,2020 year —2021 year , The global PC The market has been 6 Quarter growth ,2021 In, the global shipment volume reached 10 Year high . But after the outbreak hit hard , The global PC Shipments continued to decline .Gartner The preliminary statistics released show that , Global personal computers （PC） stay 2021 Total shipments in the fourth quarter of 2013 8840 Ten thousand units , a 2020 Decline in the fourth quarter of 5%.

Coupled with the normalization of the epidemic ,PC The market is likely to remain at a low point for some time , But Lenovo, which sells computers first in the world , The new financial year report released recently is not as expected by some investment banks ,“ Under the superimposed influence of multiple macro uncertainty factors in the market , By 6 Lenovo Group's sales may slow down in the first fiscal quarter ending at the end of the month , Among them, the decline of PC shipments in the first fiscal quarter may reach double digits ”

Results show that , Lenovo Group's revenue reached 4600 One hundred million yuan , Year-on-year growth 18%; The net profit exceeded the 10 billion mark for the first time , achieve 130 One hundred million yuan , Year-on-year growth 72%. This is the 2014 Completed the research on Motorola mobile and IBM x86 Since the server merger , For the first time, the company realized full line profit in its main business .

that , How does association go through the cycle , To realize the overall profitability of the main business ？

Crossing period , complete “ Spiral type ” rising

Howard · Max once said ,“ Nothing can develop in the same direction forever .” Enterprises should survive for a long time , You need to grow , Business innovation , Until we find a new growth engine .

As an enterprise that sells computers for every household , Lenovo Group has long been looking for new growth engines .4 month , Yangyuanqing, chairman of Lenovo Group, once expressed his ideas on how to successfully cross the cycle at the swearing in conference of the new fiscal year . He said ,“ The company is entering a new stage of development , Facing the challenge of a new cycle , What a successful enterprise should do is , Complete the spiral rise in one cycle after another ...... Through technological innovation , Through the upgrading of business model , Build a new growth engine as soon as possible .”

Lenovo Group's new growth engine , It is SSG Programme services business 、ISG The two major businesses of infrastructure program business .

Results show that , Lenovo Group's largest business is intelligent equipment business （IDC） The annual revenue is close to 4000 One hundred million yuan , Year-on-year growth 18%; Operating profit reaches 304.1 One hundred million yuan , Year-on-year growth 27%. In the middle of PC Business performance is also good , The company continues to hold the No. 1 position in the world in terms of personal computer business , game 、 High-end YOGA And other high-end segment products 30% The growth of , The growth of workstation category exceeds 60%,SMB The business turnover of small and medium-sized enterprises increased year-on-year 28%.

But here's the thing , Lenovo group LTD. PC The proportion of businesses other than the main business is increasing , achieve IDG Total revenue 18.4%. among ,SSG The profitability of the program service business broke the record , The revenue has reached 349.2 One hundred million yuan , Year-on-year growth 30%; Operating profit 76.7 One hundred million yuan , Year-on-year growth 40%, The operating profit margin has reached 22%;

It is reported that ,SSG Business with new IT Technical architecture advantages of , Integrate Lenovo's full stack service capabilities , Through support services 、 management service 、 Project based services （ Industry solutions ） And maintenance services , Help all walks of life in intelligent transformation and upgrading . last year 9 month , Lenovo launched TruScale service , For traditional hardware 、 Software 、 Services and other decentralized procurement modes , Form subscribable services 、 One stop all inclusive service mode ; The service's portfolio now extends to areas such as office digital solutions .

ISG The infrastructure solutions business also performed strongly , Since the first quarterly profit in the third fiscal quarter , The first full year profit was realized this time , Revenue achieved 458.2 One hundred million yuan , Year-on-year growth 13%;ISG China's revenue grew year on year 19%. It is reported that ,ISG Business includes storage 、 Software 、 Services and high-performance computing , It also includes the “ End - edge - cloud - network - wisdom ” Full element architecture , The architecture is also praised by the China Academy of communications as “ new IT”, It can promote the intergenerational revolution of infrastructure in the digital age , Become the engine of China's economic transformation and upgrading .

Look at the quarterly results , In the fourth fiscal quarter, Lenovo Group also achieved a double harvest in revenue and net profit , Revenue achieved 1060 One hundred million yuan , Year-on-year growth 7%; Net income of 26 One hundred million yuan , continuity 7 The year-on-year growth rate in the last quarter exceeded 50%.

Before the release of this year's and quarterly reports , Yang Yuanqing once said “ Our revenue for the entire fiscal year is expected to reach a new milestone , stride across 700 Billion dollars , namely 4500 Billion yuan mark .” This time, Lenovo Group has exceeded its target . On the business performance of this year , Yang Yuanqing also said ,“ Infrastructure solutions and mobile services are in the harvest period , Contributed to the profits , And together with the programme services business , Become the company's new growth engine .”

For this financial report , The secondary market is also optimistic .

According to the observation of Mantis , stay 5 month 26 After the release of the new financial report of Lenovo Group on the th , The volatility of its share price is higher . to 27 Closing of Japanese and Hong Kong stocks , Lenovo Group shares closed 7.5 The Hong Kong dollar , rose 3.16%, The total market value is 903.13 Million Hong Kong dollars ; But before the results are announced , According to media reports, several investment banks have lowered the rating and target price of Lenovo Group , Macquarie analysts believe that ,“ lenovo PC/Tablet 2022 Fiscal year sales are forecast to decline 8%/15%;（IDG） The operating profit margin was lowered to 7.0%”. After the results are announced , The rise of share price and the performance of the company actually overturned this kind of market sentiment .

The screenshot from ： Snowball

The short-term market investment may be based on the company's recent performance and trends , But the long-term view is the growth of the company , And the sustained growth of the enterprise , Nor is it the profit of the new hatching business in the short term or the blood transfusion of the old business , Lenovo Group's new 、 Old business can burst out for a long time “ vitality ” Do you ？

Long term vitality is enough ？

Judge the growth of a company , That is to study the business composition of a company , Track potential of the industry and market penetration and other factors .

The above supports Lenovo Group to complete... In a new cycle “ Spiral type ” The logic of ascension , It is the main business with strong performance , add SSG、ISG The result of two new growth engines , And these businesses can burst into vitality , It is related to the cost invested by the company .

Results show that , The R & D investment of Lenovo Group this year reached 130 One hundred million yuan , Year on year increase 43%, The recruitment of R & D talents is close 5000 people ; In fact, the R & D investment of Lenovo Group only accounts for 2.8%, It is lower than a technology-based enterprise 10%-30% The normal ratio of .

Although the R & D investment does not reach the normal ratio , But Lenovo Group focuses on incubating SSG、ISG The two businesses belong to industries with great potential .

2020 The outbreak of the epidemic in has stimulated the demand for digital transformation of enterprises , Until then “ the 14th Five-Year Plan ” The plan clearly proposes to build a digital China , Independent technology 、 Information infrastructure 、 Industry digitalization and digital industrialization have become the focus , In fact, the process of digital transformation of many large enterprises has gone through from 0 To 1 The popularization stage of , Start moving into deep water .

This is the traditional tradition IT It has been unable to meet the diverse needs of digital transformation of key customers , Yes “ End - edge - cloud - network - wisdom ” new IT The need for all factors to work together is becoming more and more urgent . according to IDC expect , To 2022 In the world IT And business services revenue will grow 5.6%, In the last year 10 The monthly forecast has been raised 160 BPS .

Digital transformation drives into the deep sea , Enterprises providing relevant services need to upgrade their own hardware 、 Software 、 Technology and other services , Improve its own closed-loop service . Actually, I put forward “3S” Since the strategic transformation , Lenovo Group is constantly laying out “ End - edge - cloud - network - wisdom ” new IT All elements and all structures .

Yang Yuanqing once said ,“ To 2023/2024 At the end of the fiscal year , R & D investment will be 2020/2021 Doubling on the basis of fiscal year . In the next five years , The total R & D investment will exceed 1000 One hundred million yuan ” These R & D investments are mainly focused on “ End - edge - cloud - network - wisdom ” Technical framework , Strengthen basic research and breakthrough technology .

Lenovo Group SSG Business 、ISG Business can take advantage of new IT Technical architecture advantages of , Help all walks of life in intelligent transformation and upgrading , Its own business also achieved year-on-year growth 63% The best . Among them, the revenue of operation and maintenance service business, which goes deeper into the industry than traditional hardware support services, has occupied SSG Nearly half of the overall business , Year-on-year growth 63%.

In addition, draw areas to see , Lenovo Group China 21/22 The revenue of the whole fiscal year increased year-on-year 28%, All three business groups achieved double-digit growth ; Sales in the United States increased year on year 24%; In Europe, 、 Middle East and Africa , The group's revenue increased year on year 15%. What we can see is , Lenovo China is becoming a new growth point of Lenovo Group .

Lenovo China has been accelerating “3S The transformation of ” strategic , At present, a new IT Full stack service capability , The whole fiscal year 3S The proportion of business revenue has exceeded 25%. From the perspective of splitting business , Infrastructure business （SI） Revenue increase 19%, And make profits , Servers rank fourth in the Chinese market ; Programme services business （SS） For the first time 100 A milestone of 100 million yuan Booking income , Year by year 42%, Rush into China IT Top four in the service market ; Smart device business （SD） Year on year growth in revenue 80%; meanwhile PC Business performance is robust ,PC The sales market share and sales market share reached a record high , Reach respectively 39.7% and 42.6%.

Lenovo China in Edge AI、 Intelligent gateway and other key technologies 、 The field of commercial products is accelerating , To improve the solutions and service capabilities of various industries , And try to be China IT The king in the market . Liu Jun, executive vice president of Lenovo and President of China, Zeng Qingming ：“PC Keep leading market share ”、“x86 Server and solution services hit the first on the two tracks ”、“ The overall turnover of key customer business has exceeded 100 billion yuan ” Three goals . Increase the R & D investment of Lenovo Group , Lenovo China “3S” The business is constantly upgraded , The goal of China may be achieved .

But do To B Our business is different from the hardware business , To establish a long-term customer base and brand image and reputation , It is not just about R & D investment , It also depends on the capital reserve 、 Market competition environment, technology precipitation and other factors .

Back to Lenovo Group , During the reporting period, the group's annual cash flow from operating activities reached 41 Billion dollars , Net debt decreases 15 Billion dollars . Sufficient capital reserves , But distance “ Invest 100 billion yuan in five years ” The figures are quite different .

in addition , Huawei 、 Ali 、 Tencent and many other technology giants have launched global IT And the layout of the commercial service market , The proportion of people's input is no longer small ; Huawei 2021 R & D investment in the whole year of 1427 One hundred million yuan , Although not disclosed in IT Market investment , But there is news that 2015 Time is in IT The investment in the business has reached 3.5 Billion dollars （ Renminbi conversion 23.5 One hundred million yuan ）.

Contrast looks , Lenovo group LTD. “3S The transformation of ” Although strategy is constantly releasing energy ISG、SSG The continuous growth of the two businesses , But in the fierce global IT And break through the competition in the commercial service market , Lenovo Group also needs to continuously increase R & D investment and technological innovation , To maintain the lasting vitality of the new business , Provide truly useful products and solutions for enterprises undergoing digital transformation .

On the whole , Lenovo Group takes technological innovation as its axis in the new cycle , Service oriented fundamentals , Create two new growth engines to cross the trough , This year's performance report has come to a perfect conclusion . Recently, the rating agencies have given Lenovo a relatively positive rating . Fitch confirmed Lenovo's rating as BBB, Looking forward to stability ; S & P confirmed Lenovo's rating as BBB-, The outlook is positive ; Moody's will Lenovo's issuer rating and senior unsecured rating , from “Baa3” Up to “Baa2”.

* The pictures in this article are all from the Internet