Core Viewpoint - Macquarie's report indicates that Lenovo Group's first fiscal quarter performance in IDG and SSG exceeded expectations, maintaining a buy rating with a target price of HKD 13.10 [1][2] Group Summaries Intelligent Device Group (IDG) - Revenue increased by 18% year-on-year, surpassing Macquarie's expectations and market consensus by 6% [1] - Strong growth attributed to significant market share gains in key regions and an increase in average selling price (ASP) [1] - Smartphone revenue achieved double-digit growth, particularly strong in Japan and India [1] - Operating profit margin (OPM) rebounded by 0.3 percentage points to 7.1% [1] - The personal computer market is expected to see mid-to-high single-digit growth for the remainder of the year, driven by Windows 11 upgrades [1] Infrastructure Solutions Group (ISG) - Revenue grew by 36% year-on-year, exceeding Macquarie's expectations and market consensus by 5% and 11% respectively [1] - Growth driven by ongoing collaboration with cloud service providers (CSPs), double-digit growth in enterprise sector revenue, and over 100% growth in AI server revenue [1] Solutions and Services Group (SSG) - Revenue increased by 20% year-on-year, surpassing Macquarie's expectations and market consensus by 9% and 7% respectively [2] - OPM improved by 1.2 percentage points, benefiting from major cross-industry client contracts and higher adoption of the "capital expenditure to operational expenditure" model [2] - Significant growth in device-as-a-service and infrastructure-as-a-service, achieving double-digit and triple-digit growth respectively [2] Future Outlook - Macquarie remains optimistic due to several factors: 1) PC replacement cycles and AI upgrades are expected to enhance product mix [2] 2) Steady growth in service revenue (approximately 10%) is anticipated to yield above-average OPM [2] 3) Expansion in server revenue scale is expected to return ISG's OPM to positive territory as capacity increases [2] - Adjustments made to net profit forecasts for fiscal years 2026, 2027, and 2028, with increases of 8%, 12%, and 13% respectively, primarily driven by revenue growth in IDG and ISG [2]

Core Viewpoint - Macquarie's report indicates that Lenovo Group (00992) achieved strong operating profits in its IDG and SSG segments for the first fiscal quarter, exceeding expectations. The buy rating is maintained with a target price set at HKD 13.10 [1][2]. Group 1: Financial Performance - The first fiscal quarter's revenue grew by 22% year-on-year, surpassing Macquarie's expectations by 6% and market consensus by 8% [1]. - Intelligent Devices Group (IDG) revenue increased by 18% year-on-year, exceeding Macquarie's expectations and market consensus by 6% each. This growth was driven by strong market share gains in key regions and an increase in average selling price (ASP) [1]. - The Infrastructure Solutions Group (ISG) saw a revenue increase of 36% year-on-year, surpassing Macquarie's expectations by 5% and market consensus by 11%. This growth was attributed to ongoing collaborations with cloud service providers (CSPs) and significant growth in AI server revenue [1][2]. Group 2: Segment Insights - Solutions and Services Group (SSG) revenue grew by 20% year-on-year, exceeding Macquarie's expectations by 9% and market consensus by 7%. The operating profit margin (OPM) improved by 1.2 percentage points, driven by major client contracts and a higher adoption rate of the "capital expenditure to operational expenditure" model [2]. - The company anticipates that the PC replacement cycle and AI upgrades will enhance product mix, while service revenue is expected to grow steadily at around 10%, potentially leading to above-average operating profit margins [2]. - The report projects an increase in non-Hong Kong financial reporting net profit expectations for fiscal years 2026, 2027, and 2028 by 8%, 12%, and 13% respectively, primarily due to revenue growth in IDG and ISG [2].