Ge Long Hui·2025-11-23 05:02Core Insights - Lenovo reported 2QFY26 revenue of $20.45 billion, a year-on-year increase of 14.6%, exceeding Bloomberg consensus expectations by 1.7% [1] - Non-HKFRS net profit reached $512 million, up 25.2% year-on-year, surpassing the company's previous guidance midpoint of approximately 19% [1] - The company disclosed that AI-related business revenue accounted for 30% of total revenue, reflecting a year-on-year increase of 13 percentage points [1] Group 1: PC and IDG Performance - IDG (Intelligent Devices Group) revenue grew by 11.8% year-on-year, with an operating profit margin of 60%, demonstrating resilience amid rising storage costs [2] - Lenovo's global PC market share increased by 1.8 percentage points year-on-year to 25.6%, marking a record high and leading the second-place competitor by 5.7 percentage points [2] - Driven by hybrid AI, PC revenue rose by 17% year-on-year, with AI PC penetration increasing by 16 percentage points year-on-year, accounting for 33% of total PC shipments [2] Group 2: ISG and SSG Performance - ISG (Infrastructure Solutions Group) revenue increased by 23.7% year-on-year, driven by demand for cloud infrastructure and enterprise solutions [3] - AI server business recorded high double-digit revenue growth, with strong order reserves [3] - Neptune liquid cooling technology revenue surged by 154% year-on-year, reinforcing the company's leadership in energy-efficient AI infrastructure [3] - SSG (Solutions and Services Group) revenue grew by 18.3% year-on-year, maintaining double-digit growth for the 18th consecutive quarter, with an operating profit margin exceeding 22% [3] Group 3: Future Outlook and Valuation - The company expects to leverage its scale and supply chain advantages to mitigate the impact of rising storage costs, with AI anticipated to drive stable revenue growth in IDG [2] - The target price has been adjusted to HKD 14.0 (previously HKD 16.0), corresponding to a 14.6 times FY2026E PE, while maintaining a "Buy" rating [3]