Bond Market News

PC-maker Lenovo reported a 65% YoY jump in its Q2 profits to $512mn. Revenues jumped 23% YoY to $17.9bn. Both, revenues and profits were at record levels for the company. Operating cashflows doubled YoY to $1.6bn. All divisions performed well led by the Intelligent Devices Group (IDG) with revenue growth of 21% YoY to $15.3bn and profitabiltiy growth up 34% to $1.2bn. It said that smartphones had its best quarter ever with profit reaching a new historic high of $89mn and revenues growing 27%, the highest in over 3 years. However, Lenovo also said,  “The industry-wide component shortage of various integrated circuits (ICs) remained a business challenge, causing delays in order fulfilment and significant back-log orders across PCs, smartphones, and servers”.

Lenovo’s dollar bonds were stable with its 5.875% 2025s at 112.14, yielding 2.21%.

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