LENOVO GROUP(00992) 国证国际证券·2025-02-25 09:29Investment Rating - The report maintains a "Buy" rating for the company with a target price of 14.6 HKD, indicating a potential upside of 23.9% from the recent closing price of 11.7 HKD [6]. Core Insights - The company reported a total revenue of 18.8 billion USD for Q3 of the fiscal year 2024/25, representing a year-on-year growth of 20%. The net profit attributable to shareholders surged by 106% to 693 million USD, aided by a non-recurring tax benefit of 282 million USD. The non-GAAP net profit was 430 million USD, also reflecting a 20% increase [1][2]. - All major business segments demonstrated strong performance, contributing to a diversified growth engine that continues to accelerate [1]. Summary by Relevant Sections Smart Devices Business - The Intelligent Devices Group (IDG) achieved a revenue growth of 12% to 13.78 billion USD, with a segment profit margin of 7.3%. The company solidified its leading position in the PC market, particularly in gaming and commercial PCs. The smartphone segment, particularly the Motorola brand, saw double-digit revenue growth and increased global market share, exceeding 6% in the global smartphone market (excluding China) [2]. Infrastructure Solutions Business - The Infrastructure Solutions Group (ISG) experienced a significant revenue increase of 59% to 3.94 billion USD, marking a record high for three consecutive quarters. This turnaround to profitability was driven by strong demand for servers due to cloud investments and enterprise business recovery, achieving an operating profit of 1 million USD, up by 39 million USD year-on-year. The company’s innovative liquid cooling product, Neptune, is expanding its application across various industries [2]. Solutions and Services Business - The Solutions and Services Group (SSG) reported a 12% revenue increase to 2.26 billion USD, maintaining a robust operating profit margin of 20%. Operating profit rose by 11% to 459 million USD, supported by significant growth in operational services and project solutions, with service orders increasing for five consecutive quarters [3]. - The ongoing democratization of AI and the proliferation of AI applications are expected to bolster demand in the industry, with the company aiming to maintain its leadership in edge AI [3]. Financial and Valuation Summary - The company’s projected net profits for the fiscal years 2024/25 and 2025/26 are estimated at 1.55 billion USD (including the non-recurring tax benefit) and 1.47 billion USD, respectively. The report assigns a price-to-earnings ratio of 15.0x for the fiscal year 2024/25, supporting the target price of 14.6 HKD [3][5].