Company briefs: SMIC; Lenovo; Nvidia

Semiconductor Manufacturing International Corp (SMIC) has been added to two Hong Kong indexes focused on environmental, social and governance (ESG) risks, even as China's largest chipmaker remains a sanctioned entity in the United States.

The company will join the HSI ESG Enhanced Index and the HSI ESG Enhanced Select Index following a review, according to a statement from Hang Seng Indexes late on Wednesday. The change will come into effect on June 13.

Shares rose as much as 1.3 per cent yesterday before erasing gains.

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Lenovo Group's profit beat market estimates after the world's biggest personal computer maker widened its lead over longtime rival HP. Net income of the Chinese PC giant jumped 58 per cent to US$412 million (S$567 million) in the first three months of the year, a company filing showed, higher than analysts' average estimate of US$354 million.

Sales were US$16.7 billion in the same period, compared with the average expectation of US$17.6 billion. Shares of Lenovo fell slightly in Hong Kong yesterday morning before the results were announced.

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Nvidia Corp, the largest US chipmaker by market value, slid in pre-market trading after China's Covid-19 lockdowns and the war in Ukraine weighed on its sales forecast. Revenue in the current quarter will be roughly US$8.1 billion (S$11.2 billion), the company said in a statement on Wednesday. That compares with an US$8.44 billion average analyst estimate, according to data compiled by Bloomberg. The outlook reflects the continuing supply-chain chaos in China, which has made it harder for firms like Nvidia to capitalise on still-growing demand for chips.

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