Zhi Tong Cai Jing·2025-11-25 07:27Core Insights - The report from Guotou Securities maintains a "Buy" rating for Lenovo Group (00992) with a target price of HKD 12.3, highlighting strong growth across all three business segments [1] Group 1: Smart Devices Business - The IDG segment reported a 11.8% year-on-year revenue increase to USD 15.11 billion in Q2 2026, with an operating profit margin stable at 7.3%, driven by higher AI computer shipments and strong sales of high-end products [1] - Lenovo achieved a historic high of 25.6% market share in the global PC market, an increase of 1.8 percentage points year-on-year, according to IDC [1] - Smartphone activations reached a new high, with notable performance in the Asia-Pacific region, particularly in the Indian market where high-end models and the Moto G series saw significant sales growth [1] Group 2: Infrastructure Solutions Business - The ISG segment experienced a 23.7% year-on-year revenue increase to USD 4.09 billion in Q2 2026, with improvements both year-on-year and quarter-on-quarter [2] - AI infrastructure emerged as the core growth engine, with cloud and enterprise infrastructure driving growth, while localized product advantages and the ODM+ model continued to optimize performance [2] - Operating profit margins in the Chinese market showed steady improvement [2] Group 3: Solutions and Services Business - The SSG segment achieved an 18.1% revenue growth to USD 2.56 billion in Q2 2026, marking a historical high, with an operating profit margin of 22.3%, up 1.9 percentage points year-on-year [3] - Revenue from operations and project solutions accounted for 58.9% of total revenue, with TruScale subscription service orders experiencing triple-digit year-on-year growth [3] - The demand for digital workplace solutions and hybrid cloud services remains strong, aligning with market trends [3] Group 4: AI Strategic Layout and Adjustments - The company's AI strategy is shifting towards a focus on human and enterprise entities, aiming to create growth opportunities for various AI terminal devices, hybrid infrastructure, and AI solutions [4] - In the personal intelligence domain, Lenovo plans to launch a personal super-intelligent entity at the Lenovo Innovation Technology Conference in January, which will collaborate across devices and learn user habits, termed as "personal intelligent twin" [4] - In the enterprise intelligence sector, the focus is shifting from public cloud training to local data centers and edge-side inference, aiming to transform enterprise data into insights and value, creating an "enterprise intelligent twin" [4] Group 5: Storage Supply and Price Increase Countermeasures - Lenovo is preparing for ongoing storage supply shortages and price increases, which may persist into next year [5] - The company has secured long-term agreements with key component suppliers to ensure supply for the upcoming quarters [5] - As one of the largest component buyers in the industry, Lenovo has cost advantages and plans to pass on cost increases to downstream customers through various methods, avoiding sudden price hikes [5] - The strong supply chain capabilities of Lenovo are expected to highlight its advantages and potentially capture more market share despite ongoing supply chain price fluctuations [5]