Guohai Securities·2024-05-27 12:02Investment Rating - The report maintains a "Buy" rating for Lenovo Group (00992) [1] Core Insights - Lenovo Group's Q4 FY2023/24 performance shows significant improvement, with revenue of $13.833 billion, a year-over-year increase of 9%, and a net profit of $248 million, reflecting a 118% year-over-year growth [3][4] - The overall annual performance for FY2023/24 indicates a revenue decline of 8.2% to $56.864 billion and a net profit decrease of 37.1% to $1.011 billion, suggesting a recovery trend in the second half of the fiscal year [3][4] - The report highlights the accelerating penetration of AI PCs and the positive impact of AI server orders on future performance, indicating sustainable improvement in the upcoming fiscal year [4][7] Financial Performance Summary - Q4 FY2023/24: Revenue of $13.833 billion (YoY +9%, QoQ -12%), gross profit of $2.428 billion (YoY +13%, QoQ -7%), and net profit of $248 million (YoY +118%, QoQ -26%) [3] - Full Year FY2023/24: Revenue of $56.864 billion (YoY -8.2%), gross profit of $9.803 billion (YoY -6.6%), and net profit of $1.011 billion (YoY -37.1%) [3] - The report projects FY2025 revenue of $62.398 billion and net profit of $1.277 billion, with corresponding EPS of $0.11 [7][8] Business Segment Performance - IDG (Intelligent Devices Group) reported Q4 revenue of $10.463 billion (YoY +7%, QoQ -15%), contributing 71% to total revenue, with a 7.4% operating margin [5] - ISG (Infrastructure Solutions Group) achieved Q4 revenue of $2.533 billion (YoY +15%, QoQ +2%), but faced challenges with a -3.8% operating margin due to R&D investments and supply chain issues [6] - SSG (Solutions and Services Group) generated Q4 revenue of $1.820 billion (YoY +10%, QoQ -10%), maintaining a 21.4% operating margin, driven by AI services and strong contract growth [6]