LENOVO GROUP(00992) 国信证券·2024-12-02 10:10Investment Rating - The report maintains an "Outperform" rating for Lenovo Group (00992 HK) [2][5][13] Core Views - AI PC penetration is accelerating, driving performance growth [2] - Smart Devices and Infrastructure Solutions business groups performed strongly, with AI driving growth [2][8] - FY1H2025 revenue reached 602 million, up 41% YoY [2][8] - FY2Q2025 revenue was 359 million, up 44% YoY and 47% QoQ [2][8] Business Performance Smart Devices Business Group - Revenue reached 6 465 billion, up 65% YoY [2] - Growth driven by strong demand for AI servers and the company's core advantages in liquid cooling (Neptune solution) [2][8] - Operating loss narrowed to 4 050 billion, up 12% YoY [2] Financial Metrics - FY2Q2025 gross margin was 15 7%, down 0 9 ppts QoQ due to product mix changes and slower growth in high-margin solutions services [2][9] - FY2Q2025 operating expense ratio was 13 2%, down 0 8 ppts QoQ [2][9] - FY2Q2025 net profit margin was 2 2%, up 0 5 ppts QoQ [2][9] AI and Market Trends - AI PC penetration in China reached 14% of notebook shipments in FY2Q2025 [2] - Smartphone business achieved double-digit growth in Asia-Pacific, Europe-Middle East-Africa, and North America markets [2] - Foldable smartphones successfully entered the high-end market [2] Financial Forecasts - Revenue forecasts for FY2025-2027 were raised to 62 3/67 6/72 1 billion) [13] - Net profit forecasts for FY2025-2027 were adjusted to 1 288/1 635/1 901 billion) [13] - Current P/E ratios are 12/10/9x for FY2025-2027 [13] Valuation and Key Metrics - Closing price: HK113 006 billion [5] - 52-week high/low: HK585 54 million [5]