Ge Long Hui·2025-11-23 05:02Core Insights - Lenovo Group's 2QFY26 performance exceeded expectations with revenue of $20.452 billion, a year-on-year increase of 14.6% [1] - Non-HKFRS net profit reached $512 million, up 25.2% year-on-year, while net profit attributable to shareholders declined by 5.1% to $340 million [1] - The strong performance was driven by double-digit revenue growth across all three business groups and regions, with AI-related revenue accounting for 30% of total revenue, up 13 percentage points year-on-year [1][2] Business Segment Performance - The IDG segment reported revenue growth of 11.8% to $15.107 billion, with an operating profit margin of 7.3% [2] - Lenovo's PC shipment growth of 17.3% outpaced the global PC market's growth of 9.4%, increasing its market share to 25.5% [2] - The ISG segment saw revenue growth of 23.7% to $4.087 billion, with a reduced operating loss margin of -0.78%, indicating significant improvement [3] Market Position and Outlook - Lenovo holds a 31.1% share of the global Windows AI PC market, maintaining its leading position [2] - The company is confident in achieving double-digit year-on-year growth in PC revenue for the second half of FY2026, supported by strong supply chain management and long-term relationships with key component suppliers [2] - The AI infrastructure business is experiencing robust growth, particularly in cloud infrastructure and AI server revenue, which is seeing high double-digit growth [3] Financial Projections - Lenovo maintains its FY2026/27 profit forecasts, with the current stock price corresponding to a price-to-earnings ratio of 9.3x for FY2026 and 8.0x for FY2027 [3] - The target price is set at HKD 14.8, reflecting a potential upside of 52% based on FY2026/27 earnings multiples [3]