LENOVO GROUP(HK:00992) Orient Securities·2024-11-20 07:51Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15.09 HKD based on a PE valuation of 18.92 times for comparable companies [2][5]. Core Insights - The company's revenue and net profit attributable to shareholders increased by 22% and 41% respectively in the first half of the fiscal year, with growth of 24% and 44% in the second fiscal quarter, reaching 178.5 million and 359 million USD [1]. - The IDG smart device business group saw a revenue growth of 15% in the first half of the fiscal year, driven by strong performance in personal computers and smartphones, with PC revenue up 12% and smartphone revenue up 43% [1]. - The ISG infrastructure solutions business group achieved a record revenue growth of 65% to 6.5 billion USD in the first half of the fiscal year, with significant contributions from storage, software, and services [1]. - The SSG solutions services business group reported a 12% increase in revenue to 4 billion USD, benefiting from strong demand for "as-a-service" and AI-driven solutions, maintaining a high operating profit margin of 21% [1]. Financial Summary - The company's projected earnings per share for the fiscal years 2024/25 to 2026/27 are 0.10, 0.12, and 0.14 USD respectively, with adjustments made to revenue and pre-tax profit margin forecasts [2][11]. - The company's revenue for FY24E is estimated at 65,259 million USD, with a projected growth rate of 15% [4]. - The net profit attributable to shareholders is forecasted to reach 1,271 million USD in FY24E, reflecting a growth rate of 26% [4].