Lenovo Group's 1%-strong index has praised profit margin rebound

View the latest quotes November 6 news, Lenovo Group shares in the market this morning with a small, half a half-day increase of 1.35% to 4.5 Hong Kong dollars, slightly ran the red chip index increases, the deal 33.97 million shares. Macquarie issued a report saying that it maintained the shares to win the market rating, the target price from 4.45 Hong Kong dollars to 5.05 Hong Kong dollars, than the market premium of 12%. Since most commercial PCs are still installed in the 2001 version of Windows XP, the business-swap PC will eventually boost the unit, with Lenovo's business computer businesses still more.　　Among the factors contributing to the stock's share price was the increase in sales of the global PC industry, which ran at more than 2% per cent in fiscal year 2011. Goldman Sachs also maintained its belief in the buying list, with the target price rising from HK $4.9 to HK $5, the equivalent of 17 times times the 10 earnings ratio.　　Lenovo's second-quarter earnings were better than expected, with its PC sales growing, gross profit margins improving, and corporate demand expected to return to growth in 2010, raising the forecast for fiscal year 2009-2011 earnings and earnings per share by 2% to 4%. Morgan Stanley, however, only maintained its neutral rating, giving a target price of HK $4. While the company's net profit in the second quarter was higher than expected, it was boosted by sales gains. And the decline in gross profit margins was unexpected and negatively affected, although the impact was offset by a record-low operating expenditure. It is expected that Lenovo's gross profit margins will only remain modest until the company's PC market recovers substantially, as it will focus on Low-margin consumer laptop business.