LENOVO GROUP(HK:00992) Ge Long Hui·2025-11-18 07:41Group 1 - The core viewpoint is that Lenovo, as a leading global PC and server manufacturer, is expected to benefit significantly from the upcoming upgrade cycle in 2025, leading to an increased buy rating and a target price adjustment to HKD 20 from HKD 15 [1][2] - Lenovo is transitioning from a technology hardware giant to a service-oriented company, leveraging its 25% market share in active PC users and strong reputation in the PC and server sectors to drive growth in services and solutions [1] - The company is well-positioned in the AI wave, with its AI assistant "Xiao Tian" integrated with DeepSeek, enhancing capabilities such as summarization, translation, and transcription, which is expected to boost AI PC shipment volumes significantly [1] Group 2 - Lenovo's server business is poised to benefit from the super cycle of AI infrastructure in China, with the server market projected to exceed USD 140 billion by 2029, directly impacting Lenovo's order volume [2] - In the period from April to June 2025, Lenovo's AI server revenue saw a remarkable year-on-year growth of 155%, supported by strong partnerships and innovative cooling technologies that reduce data center power consumption [2] - Lenovo currently holds approximately 35% of the AI cloud server revenue in China, with expectations to exceed 20% market share by 2028 as large-scale deployments and water cooling technology become standard in new AI data centers [2]