Guoxin Securities·2025-08-20 14:19Investment Rating - The investment rating for Lenovo Group (00992.HK) is "Outperform the Market" [5][25]. Core Views - Lenovo Group has experienced rapid revenue growth across all business segments, with a reported revenue of $18.83 billion for FY1Q2026, representing a year-on-year increase of 21.9% and a quarter-on-quarter increase of 10.9%. Net profit reached $505 million, up 107.6% year-on-year and 462.2% quarter-on-quarter [1][7]. - The company has strengthened its global PC market share, achieving a record high of 24.8% in Q2 2025, with significant growth in AI PC penetration and smartphone sales exceeding market growth for eight consecutive quarters [2][21]. - The financial outlook has been adjusted upwards due to the rapid growth in AI PC penetration and smartphone sales, with projected net profits for FY2026-FY2028 estimated at $1.723 billion, $1.909 billion, and $2.187 billion respectively [3][25]. Summary by Sections Financial Performance - For FY1Q2026, Lenovo's revenue was $18.83 billion, with the Intelligent Devices Group (IDG), Infrastructure Solutions Group (ISG), and Solutions and Services Group (SSG) generating revenues of $13.46 billion, $4.29 billion, and $2.26 billion respectively, all showing double-digit growth [1][7]. - The company reported a gross margin of 14.7%, a decrease of 1.7 percentage points quarter-on-quarter, primarily due to pressures in the smartphone and server businesses [3][24]. Market Position - Lenovo's global PC market share increased to 24.8%, with commercial PCs at 27.9%, consumer PCs at 20.2%, and gaming PCs at 18.5%, all ranking first in their respective categories [2][21]. - In the AI PC segment, Lenovo holds a 30.6% market share, the highest globally, with significant engagement in AI applications [2][21]. Regional Performance - Revenue growth varied by region, with China and Asia-Pacific (excluding China) showing strong growth rates of 36% and 39% respectively, while Europe, the Middle East, and Africa, and the Americas grew by 9% and 14% [18].