LENOVO GROUP(HK:00992) GUOTAI HAITONG SECURITIES·2025-06-04 06:45Investment Rating - The investment rating for Lenovo Group is "Buy" [5] Core Insights - Lenovo Group continues to experience high revenue growth, with all main business segments showing double-digit year-on-year growth. The demand for hybrid artificial intelligence is expected to accelerate the company's growth [2][5] - In FY25 Q4, Lenovo achieved revenue of $17 billion, a year-on-year increase of 23%. The operating profit was $331 million, down 32% year-on-year, while the net profit attributable to shareholders was $90 million, down 64% year-on-year [5] - The company has adjusted its revenue forecasts for FY2026E-FY2028E to $75.1 billion, $79.7 billion, and $83.7 billion, respectively, with corresponding net profits of $1.58 billion, $1.94 billion, and $2.35 billion [5][7] Financial Summary - Revenue for FY2025 is projected at $69,077 million, with a year-on-year growth of 21.5%. The gross profit is expected to be $11,098 million, and the net profit attributable to shareholders is projected at $1,384 million, reflecting a year-on-year growth of 37% [4][9] - The company’s PE ratio for FY2026 is adjusted to 15x, with a target price for Lenovo's stock set at HKD 14.7 [5][7] - The revenue breakdown shows that the IDG segment generated $11.8 billion, ISG generated $4.1 billion, and SSG generated $2.2 billion in FY25 Q4, with respective year-on-year growth rates of 13%, 63%, and 18% [5][9] Business Segment Performance - The IDG business continues to lead, with an AI PC penetration rate increasing. Lenovo holds a market share of 23.7% in the personal computer segment, leading the second competitor by 3.6 percentage points [5] - The ISG business has turned profitable for two consecutive quarters, benefiting from both traditional and AI computing. The cloud infrastructure business revenue exceeded $10 billion, with a year-on-year increase of 92% [5][9] - The SSG business achieved an operating profit of $1.8 billion, up 15% year-on-year, driven by digital workplace solutions and hybrid cloud services [5]