Shenwan Hongyuan Securities·2025-08-14 13:43Investment Rating - The report maintains a "Buy" rating for Lenovo Group (00992) [3][8] Core Insights - Lenovo's FY25/26 Q1 financial results exceeded expectations, with revenue of $18.83 billion, a year-on-year increase of 21.9%, and a net profit of $505 million, up 107.64% year-on-year, primarily due to non-cash gains from stock option valuation changes [8] - The Intelligent Devices Group (IDG) showed strong performance in the PC segment, with revenue of $13.46 billion, a 17.84% increase year-on-year, and PC revenue alone reaching approximately $10 billion, a 22% increase, significantly outperforming the global PC shipment growth of 6.5% [8] - The Infrastructure Solutions Group (ISG) reported a revenue of $4.29 billion, a 35.77% increase year-on-year, with AI infrastructure revenue growing by 155%, indicating strong demand and a positive outlook for future growth [8] Financial Data and Profit Forecast - Revenue projections for Lenovo are as follows: FY24/25 at $69.08 billion, FY25/26 at $79.49 billion, FY26/27 at $91.55 billion, and FY27/28 at $105.24 billion, reflecting a compound annual growth rate of approximately 15% [7] - Net profit forecasts are projected to be $1.38 billion for FY24/25, $1.67 billion for FY25/26, $2.03 billion for FY26/27, and $2.43 billion for FY27/28, indicating a strong recovery and growth trajectory [7] - The report anticipates a steady increase in earnings per share, reaching $0.20 by FY27/28, with a net asset return rate projected to rise to 26.3% [7]