Huaan Securities·2024-11-26 18:11Investment Rating - The investment rating for Lenovo Group is "Buy" (首次) [2] Core Views - Lenovo Group reported a strong performance in FY25H1 with revenue of $33.3 billion, a year-over-year increase of 21.9%, and a net profit of $600 million, up 41.4% year-over-year [2] - The ISG (Infrastructure Solutions Group) business showed exceptional growth, achieving revenue of $3.31 billion in FY25Q2, a year-over-year increase of 65.1% [2] - The company is expected to maintain a positive growth trajectory in the PC market, driven by the dual forces of industry recovery and its own AIPC (AI-Enhanced PC) products [2] Financial Performance Summary - FY25E revenue is projected at $65.13 billion, with a year-over-year growth of 14.5% [4] - The net profit for FY25E is estimated at $1.255 billion, reflecting a year-over-year increase of 24.1% [4] - The company’s ROE is expected to rise to 19% in FY25E [4] Business Segment Performance - The IDG (Intelligent Devices Group) business generated $13.51 billion in revenue for FY25Q2, a year-over-year increase of 17% [2] - The SSG (Solutions and Services Group) business achieved revenue of $2.17 billion in FY25Q2, with a year-over-year growth of 12.9% [2] - The ISG business is expected to continue benefiting from strong demand for AI servers, with a significant increase in orders for liquid-cooled servers [2] Future Outlook - Revenue projections for FY25-27 are $65.13 billion, $70.21 billion, and $75.36 billion respectively [4] - Net profit projections for FY25-27 are $1.255 billion, $1.608 billion, and $1.901 billion respectively [4] - The company is expected to maintain a P/E ratio of 11.5 in FY25E, decreasing to 7.6 by FY27E [4]