Core Viewpoint - Goldman Sachs projects Lenovo Group's revenue compound annual growth rate (CAGR) to reach 11% from fiscal years 2025 to 2027, driven by increased AI PC penetration, growth in server business, and a significant year-on-year increase in PC shipments [1] Group 1: Revenue Growth Drivers - Increased AI PC penetration is expected to enhance unit value and expand market share [1] - Continuous development in the server business with a rising proportion of high-end server revenue [1] - Lenovo's PC shipments in the September quarter grew by 17% year-on-year, surpassing the global market's 9% growth rate, indicating positive market sentiment towards Lenovo [1] Group 2: Future Projections - Goldman Sachs anticipates further increases in Lenovo's AI PC production, optimizing the PC product structure [1] - The server business is expected to continue its trend of product structure upgrades, focusing on high-end products priced between $10,000 and $100,000, which will drive ISG revenue growth [1] - The rating for Lenovo is maintained at "Buy," with the target price raised to HKD 13.56 [1]

Core Viewpoint - Goldman Sachs projects Lenovo Group's revenue compound annual growth rate (CAGR) to reach 11% from fiscal years 2025 to 2027, driven by increased AI PC penetration, growth in server business, and a significant year-on-year increase in PC shipments [1] Group 1: Revenue Growth Drivers - Increased AI PC penetration is expected to enhance unit value and expand market share [1] - Continuous development in the server business, with a rising proportion of high-end server revenue [1] - Lenovo's PC shipments in the September quarter grew by 17% year-on-year, surpassing the global market's 9% growth rate, indicating positive market sentiment towards Lenovo [1] Group 2: Future Projections - Goldman Sachs anticipates further increases in Lenovo's AI PC production, optimizing the PC product structure [1] - The server business is expected to continue its trend of product structure upgrades, focusing on high-end products priced between $10,000 and $100,000, which will drive ISG revenue growth [1] - Goldman Sachs maintains a "Buy" rating on Lenovo and raises the target price to HKD 13.56 [1]

Flash | Michael Hung +886-2-8726-9092 michael.hung@citi.com 20 Oct 2025 10:33:44 ET │ 13 pages Lenovo Group (0992.HK) Stable Fundamentals & Steady Execution; Maintain Buy CITI'S TAKE We had a brief catch-up with Lenovo's IR team recently. Management noted a non-cash/non-operational warrant valuation loss of about US$148mn, which may weigh on 2QFY26 GAAP earnings. Excluding this item, Lenovo's fundamentals remain solid in 2QFY26 – IDG delivered double-digits % y-o-y shipment growth (as reported by IDC) with ...

Core Insights - Lenovo is launching the third season of the "New Business Innovation Ecosystem Roadshow" to support small and medium-sized enterprises (SMEs) by addressing their challenges in funding, channels, and resource connections [3][9] - The initiative has attracted over 350 innovative projects and facilitated nearly 100 companies to connect, with more than 60 projects achieving proof of concept (PoC) and around 20 products commercialized [3][4] Group 1: Event Overview - The third season will focus on four key tracks: AI PC-side intelligent technology, AI hardware and interaction technology, industry intelligent agents, and advanced manufacturing [4] - The competition format has been upgraded to include "3 city roadshows + 1 city showcase + 1 industry tour," taking place in five major industrial hubs: Shanghai, Hangzhou, Shenzhen, Hefei/Tianjin, and Beijing [4] Group 2: Support and Resources - Participants will unlock five core benefits: collaborative research and development, open ecosystem, capital support, brand empowerment, and service empowerment [5][25] - Winning projects will receive expert consulting, opportunities for million-level PoC projects, priority collaboration with Lenovo's factories, closed-door meetings with top investment institutions, and significant industry exposure [5][20] Group 3: Strategic Goals - Lenovo aims to create a deeper, more sustainable, and open co-creation ecosystem, linking innovative projects with investment institutions, industry leaders, local innovation clusters, and policy resources [9] - The initiative is positioned as a systematic innovation acceleration experiment, providing a platform for innovative ideas to gain visibility and support for commercialization [9][10]

Group 1 - The core viewpoint of the article highlights a significant shift in the growth focus of China's technology industry towards overseas markets due to intense domestic competition and market saturation [1][3][4] - The domestic market has transitioned from "incremental competition" to "stock competition," with companies facing resource depletion and rising costs in both ToB and ToC sectors [3][5] - The Chinese software market holds only 2%-3% of the global share, indicating a fragmented domestic market that limits growth potential [5][6] Group 2 - The article discusses the "double squeeze" faced by the Chinese technology market, characterized by a visible market ceiling and hidden internal competition, leading to a consensus that domestic growth is stalling [4][5] - The competition has devolved from "differentiated innovation" to "low-cost replication," particularly evident in the AI hardware and new energy vehicle sectors [6][9] - The article emphasizes the need for Chinese technology companies to adopt a systematic approach to overseas expansion, moving from "strategic alternatives" to "survival necessities" [3][8] Group 3 - Various sectors, including new energy vehicles and AI hardware, are exploring differentiated paths for overseas expansion, focusing on "global technology, local operations, and cultural empathy" [8][9] - Successful examples include Xiaopeng Motors collaborating with Volkswagen to develop standardized electric platforms, enhancing brand premium in Europe by 40% [9] - The article highlights the importance of localizing products and services to meet specific market needs, as demonstrated by companies like Keda Xunfei and Lenovo [15][24] Group 4 - The article outlines strategies for Chinese companies to navigate the complexities of the US-China trade war, including supply chain diversification and compliance with international regulations [25][26][27] - Companies are increasingly focusing on building a global compliance framework to mitigate risks associated with international operations [27][28] - The article predicts that overseas markets will become the primary battleground for Chinese technology companies, necessitating a shift from product competition to ecosystem competition [29][30] Group 5 - Emerging markets are expected to drive growth for Chinese technology companies, with significant opportunities in Southeast Asia, the Middle East, and Latin America [30][31] - The article stresses the importance of establishing international standards and building ecosystems to enhance competitiveness in global markets [31][32] - Companies must prioritize deep localization and global compliance to ensure survival and success in overseas markets [33][34]

Core Viewpoint - Citigroup predicts that Lenovo's upcoming quarterly financial report will reflect a solid fundamental performance, with double-digit year-on-year growth in IDG shipments and stable profit margins [1] Group 1: Business Performance - IDG's shipment volume has achieved double-digit year-on-year growth, indicating strong market demand [1] - Profit margins remain stable, showcasing Lenovo's robust operational efficiency in the PC sector [1] - SSG is experiencing steady expansion driven by recurring revenue growth [1] Group 2: Financial Outlook - ISG shows improvements in scale and cost control, with stable execution capabilities in server and server-related businesses contributing to net profit growth [1] - Overall, Lenovo's core business operations align with management's guidance for the second quarter of fiscal year 2026, with growth prospects unaffected [1] Group 3: Investment Rating - Citigroup maintains a "Buy" rating for Lenovo's stock, projecting a target price of HKD 13.6, reflecting confidence in the company's future execution capabilities [1]

总体而言，花旗认为联想集团的核心业务运营符合管理层此前对 2026 财年第二季度的指引，增长前景 未受影响。维持对该股的 "买入" 评级，并预计其未来执行能力将继续保持强劲，给予目标价13.6港 元，维持"买入"评级。 近日，知名大行花旗发布观点称，对于联想(00992)即将发布的下一季财报进行了预测，认为其基本面 依旧稳健，IDG的出货量实现了两位数的同比增长，同时利润率保持稳定，PC领域强劲的市场领导力无 可撼动；SSG则依托经常性收入的增长势头，保持稳步扩张；ISG则出现规模改善和成本控制向好，服 务器和服务器业务中稳定的执行能力，都会成为净利润稳步增长和股价上升的助推器； ...

Core Viewpoint - International investment bank Citi expects Lenovo's revenue for FY2Q26 to grow by 13% year-on-year and 7% quarter-on-quarter, reaching $20.1 billion, driven primarily by higher PC revenue [1] Group 1: Revenue and Profitability - Lenovo's PC shipments are projected to increase by 17% year-on-year and 14% quarter-on-quarter [1] - The IDG segment is expected to see revenue growth of 11% to $15 billion, with an operating profit margin stable at 7.1% [1] - The ISG segment is anticipated to grow by 20% to $4 billion, with improved operating profit margins [1] - The SSG segment is forecasted to grow by 17% [1] - Adjusted net profit margin is expected to improve to 2.2% both quarter-on-quarter and year-on-year, with adjusted net profit projected to increase by 14% year-on-year to $436 million [1] - Reported net profit is estimated at $260 million, which includes a non-cash warrant fair value loss of $176 million and convertible bond interest [1] Group 2: Target Price and Rating - Citi has raised its target price for Lenovo to HKD 12.8 and maintains an "outperform" rating [1]

Core Viewpoint - UBS expects Lenovo Group's upcoming earnings report to meet expectations, with adjusted profits increasing year-on-year and stable sales growth [1] Financial Performance - ISG (Infrastructure Solutions Group) is projected to grow by approximately 20% year-on-year [1] - SSG (Solutions and Services Group) is expected to see high double-digit growth [1] - Lenovo's PC business growth is anticipated to exceed market levels, with a year-on-year increase in the mid to low double digits [1] - Operating profit margin is expected to remain stable at 7% to 7.5% [1] - The net profit forecast is maintained at $440 million, up from a previous estimate of $435 million, with adjusted net profit expected to exceed prior estimates by $150 million to $200 million due to the impact of warrants and convertible interest [1] Strategic Initiatives - The company is focused on adjusting its enterprise product mix in the infrastructure business to achieve profitability, although higher storage costs will delay significant positive contributions [1] - Lenovo aims to expand its AI business, which currently accounts for a low single-digit percentage of sales [1] Target Price Adjustment - UBS has raised Lenovo Group's target price to HKD 12 [1]

Core Viewpoint - UBS expects Lenovo Group's upcoming performance report to meet profitability expectations, with adjusted profits showing year-on-year growth and stable sales figures [1] Financial Performance - Adjusted profit is anticipated to increase year-on-year, with net profit projected at $440 million, up from a previous estimate of $435 million [1] - Infrastructure Solutions Group (ISG) is expected to grow approximately 20% year-on-year, while Solutions and Services Group (SSG) is projected to see high double-digit growth [1] - Lenovo's PC business growth is expected to exceed market levels, with a year-on-year increase in the mid to low double digits [1] Operational Insights - Operating profit margin is expected to remain stable at around 7% to 7.5% [1] - The company is focusing on adjusting its enterprise product mix in the infrastructure business to achieve profitability, although higher storage costs may delay significant positive contributions [1] Strategic Outlook - Lenovo is working to expand its AI business, which currently accounts for a low single-digit percentage of sales [1] - UBS has raised Lenovo's target price to HKD 12 [1]