Lenovo Group, the world's largest personal computer maker, today posted better-than-expected quarterly results and shrugged off the impact of a bruising Sino-US trade war.
The news sent its shares soaring 11% to three-year highs.
The company is dual-headquartered in China and the US and is optimistic of further growth in China.
Lenovo will focus on the premium market, its CEO and chairman Yang Yuanqing said after December quarter revenue rose to the highest in four years on a strong showing across its major business groups.
"Definitely we don't want to see more trade war, political tension. If that continues, that would affect everyone, not just us, all multinationals," Yang said in an interview.
Lenovo shares are poised for their best one-day gains in almost 10 years, and adding about $1 billion to their market value.
Yang said Lenovo is well-prepared for geopolitical and economic volatility as its manufacturing facilities are spread across China, the US, India, Brazil, Japan and Mexico, ensuring a stable supply.
Lenovo, which bought IBM Corp's personal computer and server businesses, relies on the Americas for 31%of its total revenue compared to 26% from China.
Net profit for the quarter was $233m, ahead of the $207m average of 10 analyst estimates compiled by Refinitiv and up from a loss of $289m the same time a year earlier when Lenovo took a one-off hit due to US tax reforms.
Lenovo said its share in the global PC market rose to 24.6% and that it expanded in premium markets such as workstations, thin and light PCs and gaming PCs.
Total revenue in the quarter rose 8.5% to $14.04 billion, while that from its PC and smart devices group rose 12% to a record $10.7 billion.
Industry tracker Gartner said last month worldwide PC shipments fell 4.3% in the December quarter and 1.3% in 2018.
But it noted that the biggest three vendors – Lenovo, HP and Dell – expanded their market share in the quarter to 63% of total shipments from 59%.
Lenovo's mobile phone business recorded a pre-tax profit – of $3m, its first pre-tax profit since it bought Motorola's mobile business in 2014 for $2.9 billion and struggled to integrate the assets.
But revenue declined 20%, with Lenovo attributing the fall to a strategy of focusing on core markets.
Yang said he expects the PC market to consolidate further and that Lenovo would "leverage suitable opportunities".
He also said the group sees further growth potential in the China PC market, which still lags the US industry in sales volume and revenue.
"This is not consistent with our population," Yang said, drawing reference to China's smartphone and automobile markets, which are the world's largest.
The loss in Lenovo's data centre business narrowed to $55m from $86m a year earlier, while revenue grew 31%.
Yang said a new joint venture with US cloud storage company NetApp would give a further boost to this segment, but declined to give a target date for breaking even.