Investment Rating - The report maintains a "Buy" rating for Lenovo Group [4] Core Views - Lenovo Group's Q1 fiscal year 2024/25 shows significant revenue and profit growth, with revenue reaching $15.4 billion, a 20% year-over-year increase. The company's non-PC business now accounts for 47% of total revenue, a record high [1] - The ISG segment achieved a record revenue growth rate, with AI server orders expected to reach approximately $7 billion. The AI server pipeline grew over 20% quarter-over-quarter, with order growth exceeding 30% [1] - The IDG segment also reported double-digit growth, with revenue increasing 11% to $11.4 billion. AI PC products are expected to accelerate in the second half of the year, with a target penetration rate of 10% by year-end [1][2] Financial Summary - For the fiscal year 2024/25, the expected revenue is $62.1 billion, with a year-over-year growth of 9.3%. The net profit is projected to be $1.2 billion, reflecting a 17% increase [3][10] - The report forecasts revenue growth for the following years: $68 billion in 2025/26 (9.4% growth) and $77.3 billion in 2026/27 (13.7% growth) [2][3] - The expected net profit for 2025/26 is $1.5 billion (31% growth) and $2 billion for 2026/27 (29% growth) [2][3] Strategic Developments - Lenovo has established a strategic partnership with Alat, involving a $2 billion interest-free convertible bond issuance, aimed at enhancing financial flexibility and expanding customer reach in the MEA region [2] - The company plans to launch more AI PC products globally in the second half of the year, following initial shipments in China [1][2]

Investment Rating - The report maintains a "Buy" rating for Lenovo Group (00992.HK) [1] Core Views - Lenovo Group's Q1 FY2025 results show a revenue of $15.45 billion, a year-on-year increase of 20%, and a quarter-on-quarter increase of 12%. The gross margin is 16.6%, with a net profit of $240 million, reflecting a year-on-year increase of 38% [3][4] - The company is benefiting from its early investments in AI, with expectations for continued growth across all business segments due to the AI wave [4][3] - Strategic collaboration with Saudi Arabia's Alat is expected to enhance Lenovo's global presence, particularly in the Middle East and Africa [4] Financial Summary - Total revenue projections for FY2025 are $61.34 billion, with a year-on-year growth of 7.82%. Net profit is projected at $1.24 billion, reflecting a growth of 22.65% [2][4] - The earnings per share (EPS) for FY2025 is estimated at $0.10, with a price-to-earnings (P/E) ratio of 12.43 [2][4] - The Infrastructure Solutions Group (ISG) reported a revenue of $3.16 billion, a year-on-year increase of 65%, driven by AI infrastructure demand [4] Business Segment Performance - The Intelligent Devices Group (IDG) achieved a revenue of $11.42 billion, with a year-on-year increase of 11% and a profit margin of 7.3% [4] - Non-PC business segments, including mobile and tablet sales, saw approximately 30% growth, with high-end mobile revenue increasing by 142% [4] - The Solutions and Services Group (SSG) reported a revenue of $1.89 billion, benefiting from AI-driven productivity upgrades [4] Strategic Initiatives - Lenovo's partnership with Saudi Arabia's Public Investment Fund (PIF) includes a $2 billion zero-coupon convertible bond issuance and plans for a regional headquarters in Riyadh, aimed at accelerating growth in the Middle East and Africa [4]

Investment Rating - The report assigns a "Buy" rating to Lenovo Group with a target price of HKD 12.1, indicating a potential upside of 25.0% from the recent closing price of HKD 9.68 [2][3]. Core Insights - Lenovo Group reported a 20% year-on-year increase in revenue for Q1 2024/2025, reaching USD 15.447 billion, while net profit attributable to equity holders rose by 38% to USD 243 million [1][2]. - The company's gross margin was 16.6%, a decrease of 0.9 percentage points, primarily due to lower profit margins in the rapidly growing ISG business segment [1]. - The Intelligent Devices Group (IDG) saw an 11% year-on-year revenue growth, driven by high-end PCs and a new AI computer product based on Arm architecture [2]. - The Infrastructure Solutions Group (ISG) experienced a robust 65% year-on-year growth, with strong demand for general servers and liquid cooling solutions [2]. - The Solutions and Services Group (SSG) recorded a revenue of USD 1.9 billion, marking a 10% year-on-year increase and achieving double-digit growth for 13 consecutive quarters [2]. Financial Performance Summary - For Q1 2024/2025, Lenovo's adjusted net profit surged by 65% to USD 315 million [1]. - The company expects net profits of USD 1.24 billion and USD 1.47 billion for the fiscal years 2024/25 and 2025/26, respectively [2]. - The report highlights a diversified market advantage and robust financial health, with a projected P/E ratio of 15.5x for 2024/2025 [2][3].

Investment Rating - The investment rating for Lenovo Group is "Buy" (maintained) [1][9] Core Views - Lenovo Group's Q1 FY2024/25 performance shows significant year-on-year improvement, with revenue reaching $15.447 billion (YoY +20%, QoQ +12%), gross profit at $2.560 billion (YoY +14%, QoQ +5%), and net profit attributable to shareholders at $243 million (YoY +37%, QoQ -2%) [2][3] - The strategic partnership with Saudi Arabia's Public Investment Fund (PIF) through Alat aims to expand Lenovo's market presence in the Middle East, targeting a revenue increase from $1.25 billion to 10% of total revenue [2][3] - The company is expected to benefit from the issuance of $2 billion in interest-free convertible bonds, which will save $100 million in interest expenses annually over the next three years [2][3] Financial Performance Summary - For Q1 FY2024/25, Lenovo's IDG (Intelligent Devices Group) revenue was $11.422 billion (YoY +11%, QoQ +9%), accounting for 69% of total revenue, with an operating margin of 7.3% [4][6] - The ISG (Infrastructure Solutions Group) reported revenue of $3.160 billion (YoY +65%, QoQ +25%), with a negative operating margin of -1.2% due to increased investment in new projects [5][6] - The SSG (Solutions and Services Group) generated $1.885 billion in revenue (YoY +10%, QoQ +4%), maintaining a 21.0% operating margin, contributing significantly to overall profitability [6] Earnings Forecast and Valuation - Revenue projections for FY2025 and FY2026 are $62.732 billion and $71.126 billion, respectively, with net profits of $1.236 billion and $1.872 billion, leading to EPS estimates of $0.10 and $0.15 [5][8] - The P/E ratios for FY2025 and FY2026 are projected at 12.46X and 8.23X, indicating a favorable valuation outlook [5][8]

Investment Rating - The report maintains a "Buy" rating for Lenovo Group [2]. Core Views - Lenovo Group reported a significant revenue increase of 20% year-over-year (YoY) for FY1Q25, reaching $15.447 billion, with a net profit of $243 million, reflecting a 38% YoY growth [2]. - The company has successfully transitioned to a growth phase, with a notable increase in non-PC business revenue, which now accounts for 47% of total revenue, marking a 5 percentage point increase YoY [2]. - The strategic focus on AI PCs and high-end smartphones has yielded positive market feedback, with AI PC shipments increasing by 228% quarter-over-quarter [2]. Revenue Performance - FY1Q25 revenue reached $15.447 billion, representing a 20% YoY increase and a 12% quarter-over-quarter increase [2]. - The sales gross margin was 16.57%, a slight decrease of 0.9 percentage points YoY, while the net profit margin was 1.64%, an increase of 0.2 percentage points YoY [2]. - The Intelligent Devices Group (IDG) generated $11.422 billion in revenue, up 11% YoY, with a 7.3% operating profit margin [2]. Business Segments - The Infrastructure Solutions Group (ISG) saw a revenue increase of 65% YoY, reaching $3.16 billion, driven by the growth of AI servers and traditional server expansion [2]. - The company has established a strategic partnership with the Saudi Public Investment Fund, which includes a $2 billion investment to support expansion in the Middle East and Africa [2]. Financial Forecast - Projected net profits for FY25, FY26, and FY27 are $1.215 billion, $1.545 billion, and $1.902 billion, respectively, with corresponding price-to-earnings (P/E) ratios of 13, 10, and 8 [2][4].

证券研究报告 | 2024年08月18日 证券分析师：胡剑 证券分析师：胡慧 021-60893306 021-60871321 hujian1@guosen.com.cn huhui2@guosen.com.cn S0980521080001 S0980521080002 证券分析师：叶子 证券分析师：詹浏洋 0755-81982153 010-88005307 yezi3@guosen.com.cn zhanliuyang@guosen.com.cn S0980522100003 S0980524060001 联系人：李书颖 0755-81982362 lishuying@guosen.com.cn 基础数据 收盘价 9.68 港元 总市值/流通市值 120077/120077 百万港元 52 周最高价/最低价 11.89/6.96 港元 近 3 个月日均成交额 631.14 百万港元 | --- | --- | |----------|----------------| | 投资评级 | 优于大市(维持) | | 合理估值 | | | 市场走势 | | | --- | --- | --- | --- | ...

一季度业绩超预期, AI PC 需求逐步释放 联想集团(0992) [Table_Industry] 计算机 [Table_Invest] 评级： 增持 ——联想集团 1QFY25 业绩点评 股票研究 /[Table_Date] 2024.08.18 | --- | |--------------------------------| | [table_Authors] 秦和平(分析师) | | 0755-23976666 | | qinheping027734@gtjas.com | | 登记编号 S0880523110003 | 本报告导读： AI 设备、基础设施和服务市场需求强劲，有望受益于 AI PC 需求释放 投资要点： [Table_Summary] 盈利预测及投资建议：基于全球个人电脑市场的持续稳健复苏，公 司多款新品发布，以及 AI 设备、基础设施和服务市场的强劲需求， 我们看好联想长期增长潜力，调整公司 FY2025E/FY2026E 营业收 入分别为 619/636 亿 美 元 ( 前值为 622/652 亿美元 ) ， FY2025E/FY2026E 净利润分别为 12.3/16.2 亿 ...

计算机/计算机设备 公 司 研 究 联想集团（00992.HK） 2024 年 08 月 16 日 FY2025 业绩可期，FY2026 有待 AI PC 换机兑现 ——港股公司信息更新报告 投资评级：买入（维持） | --- | --- | |--------------------|--------------| | 日期 | 2024/8/15 | | 当前股价(港元) | 10.020 | | 一年最高最低(港元) | 12.260/7.230 | | 总市值(亿港元) | 1,242.95 | | 流通市值(亿港元) | 1,242.95 | | 总股本(亿股) | 124.05 | | 流通港股(亿股) | 124.05 | | 近 3 个月换手率(%) | 29.61 | 股价走势图 联想集团 恒生指数 -50% 0% 50% 100% 2023-08 2023-12 2024-04 2024-08 数据来源：聚源 相关研究报告 《AI PC 持续迭代，AI 服务器逐步放 量 — 港 股 公 司 信 息 更 新 报 告 》 -2024.5.24 《AI PC 软硬件持续优化，服务器增长 动能加强 ...

2024 年 8 月 16 日 公司研究 FY25Q1 业绩符合预期，AI 赋能各业务板块成长动力 ——联想集团（0992.HK）FY25Q1 业绩点评报告 要点 事件：FY25Q1 公司收入 154.47 亿美元，同比上升 19.7%、环比上升 11.7%， 非 PC 业务收入占比提升 5pct 至 47%，达历史新高；归母净利润 2.43 亿美 元，同比上升 37.3%、环比下降 2%，超彭博一致预期的 2.31 亿美元约 5.2%， 对应归母净利率为 1.6%，同比上升 0.2pct、环比下降 0.2pct。 PC 市场复苏，IDG（智能设备）业务收入&经营溢利同环比上升。1）FY25Q1 公司 IDG 业务收入 114.22 亿美元，同比上升 11.3%、环比上升 9.2%；经营 溢利 8.28 亿美元，同比上升 27.5%、环比增长 7.2%，主要系高端 PC 产品占 比提升 3.4pct，及商用 PC 换机开启驱动 ASP 提升。根据 IDC 数据，24Q2 全球 PC 出货量 6,490 万台，同比上升 3%，连续两个季度实现同比增长；联 想 PC 出货量 1,470 万台，同比上升 3.7%， ...

Revenue and Profit Growth - Revenue increased by 20% year-over-year to $15.447 billion, with net profit attributable to equity holders up 38% to $243 million[3][4] - Group revenue increased by 20% in Q1, marking the first double-digit growth in two and a half years, driven by strong performance in infrastructure, high-end products, and services[7] - Total revenue for the quarter ending June 30, 2024, was $15.447 billion, a 20% increase year-over-year, with net profit attributable to equity holders rising to $243 million, up 38%[15] - Pre-tax profit increased to $312.995 million, up 37.2% from $228.127 million in the same period last year[75] Infrastructure Solutions Group Performance - Infrastructure Solutions Group sales surged 65%, driven by AI infrastructure products and increased GPU supply, with losses reduced by $23 million year-over-year[3] - Infrastructure Solutions Group revenue surged 65% YoY, reaching over $3 billion for the first time, driven by AI infrastructure investments and increased GPU supply[9] - Storage and high-performance computing sales accounted for 34% of Infrastructure Solutions Group revenue, with storage revenue hitting a record high[9] - Infrastructure Solutions Business Group revenue increased to $3,159.80 million, with operating loss narrowing to $37.27 million[20] Intelligent Devices Group Performance - Intelligent Devices Group revenue grew 11%, with segment profit up 27%, supported by new AI-powered PC products and strong commercial demand recovery[3] - Intelligent Devices Group revenue grew 11%, with high-end PC sales up 21% and smartphone sales up 142%, contributing to a 27% increase in operating profit[8] - High-end PC and smartphone sales grew 21% and 142% year-over-year, respectively, outpacing the overall revenue growth of 11%[5] - Smart Devices Business Group revenue increased to $11,421.64 million, with operating profit rising to $828.38 million[20] Solutions and Services Group Performance - Solutions and Services Group achieved record revenue of $1.9 billion, up 10% YoY, with a 21% operating margin, driven by strong demand for AI-driven solutions[7] - The Solutions and Services Group is expected to achieve double-digit year-over-year revenue growth, driven by its growth strategy and strong total contract value[13] Regional Revenue Growth - EMEA region revenue grew 26% YoY, driven by strong commercial PC sales and significant smartphone market share gains[11] - China market revenue accelerated to 21% YoY growth in Q1, supported by strong performance across all business groups[11] - Americas region revenue increased 15%, driven by strong growth in PCs, smartphones, and infrastructure products, with high-end smartphones boosting market share in North America[11] - APAC (excluding China) revenue grew 20% YoY (28% in local currency), supported by strong commercial PC sales in Japan and high-end smartphone sales[11] AI and Technology Investments - R&D expenses increased by 6% to support key AI innovations, reflecting the company's commitment to maintaining leadership in AI solutions[3] - The company expects that by 2027, nearly 60% of global PC shipments will be equipped with AI capabilities, creating new growth opportunities for the Intelligent Devices Group[12] - The Intelligent Devices Group is developing proprietary technologies to improve inference speed, language model compression, and memory usage, while expanding from hardware to components and software, including AI Core chips and AI Now personal assistant[12] - The Infrastructure Solutions Group plays a key role in the hybrid AI strategy, focusing on profitability and investing in differentiated technologies such as high-performance computing, storage, and edge devices[13] - The company's Neptune technology positions it favorably in the rising demand for liquid cooling solutions in data centers[13] Financial Metrics and Expenses - Gross margin decreased by 0.9 percentage points to 16.6%, primarily due to lower margins in the Infrastructure Solutions Group[15] - Basic and diluted earnings per share increased to 1.99 cents and 1.92 cents, respectively, up by 0.51 cents and 0.49 cents year-over-year[15] - Operating expenses for the quarter ending June 30, 2024, were $2.065 billion, with R&D expenses accounting for $475.995 million, a 5.5% increase year-over-year[16] - Operating expenses increased by 11% year-on-year, with asset impairment and write-offs totaling $47 million[17] - Advertising and promotional expenses increased by $52 million for new product launches and special events[17] - Strategic investment fair value loss of $11 million, compared to a gain of $31 million in the previous year[17] - Net foreign exchange loss of $17 million, down from $44 million in the previous year[17] - Employee benefit costs decreased to $1,076.77 million from $1,102.27 million, with long-term incentive plan costs also decreasing[18] - Advertising and promotional expenses increased to $226.63 million from $174.46 million[18] - R&D-related laboratory testing, services, and supplies increased to $63.88 million from $55.73 million[18] Cash Flow and Liquidity - Operating cash flow increased by 22% year-over-year to $791 million, with inventory days rising by 11 days due to new product launches and strong demand cycles[6] - Operating cash flow reached $1.091.604 million, a slight increase from $1.057.119 million in the previous year[75] - Lenovo's cash and cash equivalents totaled $3.973 billion as of June 30, 2024, with 32.7% in USD, 26.9% in CNY, and 9.6% in JPY[26] - 80% of Lenovo's cash as of June 30, 2024, was held in bank deposits, while 20% was invested in investment-grade liquid money market funds[26] Strategic Partnerships and Investments - The company entered a strategic partnership with Alat, a Saudi Arabian PIF subsidiary, to issue $2 billion in zero-coupon convertible bonds and explore growth opportunities in the Middle East and Africa[6] - The company acquired 39% equity of the joint venture from Hefei Zhiju Shengbao Equity Investment Co., Ltd. for a consideration of RMB 1.895 billion (approximately USD 297 million), increasing its ownership in the joint venture to 90%[68] - The company has a call option and put option agreement with Yuanjia, allowing the company to purchase or Yuanjia to sell 99.31% equity of Zhiju Shengbao, with a maximum exercise price of RMB 500 million (approximately USD 69 million)[68] Debt and Financing - Lenovo's revolving loan facilities include a $2 billion facility issued on July 4, 2022, with a 5-year term, and a $500 million facility issued on January 19, 2024, with a 1-year term[27] - Lenovo's trade credit facilities amounted to $5.379 billion as of June 30, 2024, with $3.248 billion utilized[28] - Lenovo's short-term money market credit facilities totaled $2.170 billion as of June 30, 2024, with $40 million utilized[28] - Lenovo's forward foreign exchange contracts amounted to $11.488 billion as of June 30, 2024, with $11.459 billion utilized[28] - The company's available revolving and short-term loan credit facilities amounted to USD 5.17 billion as of June 30, 2024, with USD 40 million utilized[69] - The company's outstanding notes as of June 30, 2024, include USD 964.845 million with a 5.875% annual interest rate maturing in April 2025, and USD 894.366 million with a 3.421% annual interest rate maturing in November 2030[70] - The company issued USD 675 million convertible bonds with a 2.5% annual interest rate, maturing in August 2029, which can be converted into 583,994,205 shares at a conversion price of HKD 9.06 per share[71] - The company's total loans as of June 30, 2024, amounted to USD 3,623.692 million, with USD 1,013.681 million due within one year[73] Corporate Governance - The company has complied with the Corporate Governance Code of the Hong Kong Stock Exchange, except for the separation of the roles of Chairman and CEO as per Code Provision C.2.1[79] - The Board believes that having Mr. Yang Yuanqing as both Chairman and CEO is appropriate and in the best interest of the group, ensuring strategic continuity and operational stability[79] - The Board is predominantly composed of independent non-executive directors and meets quarterly to review the group's operations led by Mr. Yang[79] - Mr. William O. Grabe has been appointed as the Lead Independent Director with broad powers and responsibilities, including chairing meetings when considering the merger of Chairman and CEO roles[79] - The current Board structure, with one person holding both Chairman and CEO roles, a Lead Independent Director, and a majority of independent non-executive directors, is believed to effectively balance power and authority between the Board and management[79] Asset and Liability Management - Lenovo's capital expenditure for the three months ended June 30, 2024, was $305 million, a decrease from $331 million in the same period last year, primarily due to reduced investment in intangible assets under construction[24] - As of June 30, 2024, Lenovo's total assets were $40.485 billion, with total liabilities of $34.419 billion and a current ratio of 0.85[25] - Total financing liabilities decreased to $3.933.593 million from $3.961.689 million at the end of March 2024[76] - Short-term loans decreased to $48.836 million from $50.431 million at the end of March 2024[76] - Notes (current) significantly reduced to $964.845 million from $3.012.637 million at the end of March 2024[76] - Notes (non-current) increased to $2.048.445 million, as $964.814 million was reclassified from current to non-current[76] Trade and Other Payables - Trade payables aged 0-30 days increased to $6,149,549 thousand as of June 30, 2024, compared to $5,201,965 thousand as of March 31, 2024[60] - Total trade payables increased to $9,582,461 thousand as of June 30, 2024, from $8,473,990 thousand as of March 31, 2024[60] - Deposits, prepayments, and other receivables decreased to $3,665,552 thousand as of June 30, 2024, from $3,782,366 thousand as of March 31, 2024[61] - Other payables and accrued expenses increased to $13,209,921 thousand as of June 30, 2024, from $12,751,775 thousand as of March 31, 2024[62] - Warranty provisions decreased to $816,062 thousand as of June 30, 2024, from $808,330 thousand as of March 31, 2024[65] - Environmental restoration provisions decreased to $3,509 thousand as of June 30, 2024, from $3,681 thousand as of March 31, 2024[65] - Restructuring provisions decreased to $69,901 thousand as of June 30, 2024, from $108,939 thousand as of March 31, 2024[65] - Total provisions decreased to $889,472 thousand as of June 30, 2024, from $920,950 thousand as of March 31, 2024[65] - Other non-current liabilities decreased to $677,818 thousand as of June 30, 2024, from $754,705 thousand as of March 31, 2024[67] - Deferred consideration remained unchanged at $25,072 thousand as of June 30, 2024[67] Share Capital and Employee Incentives - The company's issued and fully paid-up share capital as of June 30, 2024, was 12,404,659,302 shares, valued at USD 3,500.987 million[74] - The company purchased 7.082.222 shares for employee incentive plans during the quarter[77] Audit and Compliance - The audit committee reviewed the unaudited financial results for the quarter ended June 30, 2024[78]