LENOVO GROUP(HK:00992) Ge Long Hui·2025-10-22 12:39Core 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]