Group 1 - The analyst has over 10 years of experience researching more than 1000 companies across various sectors including commodities and technology [1] - The focus has shifted from writing a blog to creating a value investing-focused YouTube channel, covering hundreds of companies [1] - The analyst expresses a particular interest in metals and mining stocks, while also being comfortable with consumer discretionary, REITs, and utilities [1]

Core Viewpoint - Lenovo Group's stock price has risen to HKD 12.08, with a market capitalization of HKD 149 billion, driven by strong demand for AI solutions, indicating a potential upward trend in valuation as global hybrid AI development accelerates [1] Group 1: AI Market and Product Development - Lenovo's global PC market share reached a record high of 24.6% in Q2 CY25, with AI PC market penetration at approximately 30% and user engagement for AI applications at around 40%, suggesting a strong growth trajectory for AI-related products [1] - The company has launched personal and enterprise super intelligent systems, enhancing seamless collaboration across devices, which improves user efficiency and personalization [3] - Lenovo's AI infrastructure business saw a remarkable revenue increase of 155% year-on-year in FY2026 Q1, capitalizing on the rapid growth of global AI infrastructure demand [4] Group 2: Global Manufacturing and Strategic Investments - Lenovo's "China + N" global manufacturing strategy has proven advantageous in the current trade environment, with over 30 manufacturing bases worldwide, including 11 owned factories, allowing for resilient and agile operations [2] - The company has completed a USD 2 billion zero-interest convertible bond investment with Saudi Arabia's Public Investment Fund, establishing a production base in Saudi Arabia expected to commence operations in 2026, aligning with the country's Vision 2030 strategy [2] Group 3: Market Position and Financial Performance - HSBC maintains a bullish outlook on Lenovo's PC business, viewing it as a cash cow, with strong momentum in both consumer and commercial PC segments, particularly in gaming PCs in China [4] - Lenovo's management is optimistic about the commercial PC upgrade cycle, with approximately 250 million devices still running Windows 10, which is expected to drive future growth [5] - The company has mitigated tariff impacts by relocating PC production for the U.S. market to Vietnam, enhancing its flexibility in response to market dynamics [5]

Group 1 - HP Inc. has been highlighted by Jim Cramer as a stock that continues to miss quarterly expectations, despite having repurchased 6% of its shares on average [1] - The company operates in personal computing devices, printers, 3D printing, and related technologies, along with services for hybrid work and gaming [1] - Cramer expressed skepticism about HPQ's potential in the 3D printing sector, stating it will not significantly impact the company's performance and advised against investing in the stock [1] Group 2 - Despite Cramer's negative outlook, HPQ's stock has gained over 14% since his comments [1] - There is a belief that certain AI stocks present greater upside potential and carry less downside risk compared to HPQ [1]

Core Insights - Acer has launched the Veriton GN100 AI Mini Workstation, designed for running large AI models locally, reducing reliance on cloud services and associated costs [2][4] - The workstation features the NVIDIA GB10 Grace Blackwell Superchip, providing up to 1 PFLOPS of FP4 AI performance, and includes advanced hardware specifications [3][7] - The device supports a full NVIDIA AI software stack, enabling developers to utilize popular frameworks for AI model development and deployment [4][8] Product Specifications - The Veriton GN100 is equipped with a 20-core Arm-based processor, 128 GB of unified memory, and up to 4 TB of NVMe storage [3][7] - Connectivity options include Wi-Fi 7, multiple USB 3.2 Type-C ports, HDMI, and Ethernet, ensuring robust integration and security features [5][7] - The workstation can link two units to handle AI models with up to 405 billion parameters, enhancing scalability for demanding applications [5][8] Pricing and Availability - The starting price for the Acer Veriton GN100 is USD 3,999 in North America, EUR 3,999 in EMEA, and AUD 6,499 in Australia [6]

Core Insights - HP's international operations are crucial for understanding its financial resilience and growth potential, especially in the context of a global economy [2][3] - The company's total revenue for the quarter ending July 2025 was $13.93 billion, reflecting a 3.1% increase year-over-year [4] International Revenue Analysis - Revenue from Europe, Middle East, and Africa was $4.5 billion, accounting for 32.3% of total revenue, which was a 2% miss against the consensus estimate of $4.59 billion [5] - Asia-Pacific and Japan generated $3.32 billion, representing 23.9% of total revenue, exceeding the projected $3.2 billion by 3.79% [6] Future Revenue Expectations - Analysts anticipate HP will report revenues of $14.46 billion for the current fiscal quarter, a 2.9% increase year-over-year, with expected contributions of 32.1% from Europe, Middle East, and Africa and 24.1% from Asia-Pacific and Japan [7] - For the full year, total annual revenue is projected at $54.9 billion, a 2.5% increase compared to the previous year, with Europe, Middle East, and Africa contributing 33.2% and Asia-Pacific and Japan contributing 23.9% [8] Market Performance - Over the past four weeks, HP's stock value increased by 16.7%, outperforming the Zacks S&P 500 composite's 1.6% rise [13] - In the last three months, HP shares rose by 13.3%, compared to a 9.7% increase in the S&P 500 [13]

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7][26] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][27] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Performance - Personal Systems revenue grew by 6% year over year, with strong growth in both commercial and consumer segments [9][28] - Print revenue declined by 3% in constant currency, with key growth areas performing well despite overall market softness [13][30] - Consumer subscriptions in Print saw strong growth, particularly in the all-in plan [15][30] Market Data and Key Metrics Changes - In constant currency, Americas and EMEA each grew by 1%, while APJ was up 11%, with strong performance in China [26] - The installed base of active AIPC users is growing significantly, positioning the company well for future AI-driven innovations [11][12] Company Strategy and Industry Competition - The company is focused on becoming a leader in the future of work, with significant investments in AI-powered solutions and digital services [15][20] - The strategy includes shifting to higher value segments and maintaining cost discipline to mitigate trade-related costs [8][22] - The company expects the PC market to grow mid-single digits in the second half of 2025, driven by Windows 11 refresh and AITC adoption [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market and the ability to navigate uncertainties in the global trade environment [23][36] - The company is on track to achieve $2 billion in annualized gross savings by the end of fiscal year 2025 [8][32] - Management noted that while the print market is expected to decline, the focus will be on protecting operating profit contributions from premium business [21][22] Other Important Information - The company has achieved 100% renewable electricity across its U.S. operations, marking a significant step toward its net-zero goal [19] - The company is establishing digital hubs in partnership with the YMCA, reaching over 700,000 people worldwide [20] Q&A Session Summary Question: Impact of tariff-related costs - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the Print business - Management noted that while there is short-term softness in hardware sales, the demand for printed pages remains stable, indicating a potential recovery in the future [44][47] Question: AIPC pricing and margin profile - AIPCs are expected to carry a higher average selling price (ASP) and margin profile compared to non-AIPCs, with a projected price increase of 5% to 10% [49] Question: Q4 EPS guidance - The sequential increase in EPS for Q4 is expected to be driven by improved margins from the ReadyNEXT program and seasonal uptick in demand [50][51] Question: PC market confidence - Management expressed confidence in continued demand for PCs driven by Windows 11 refresh and AIPC adoption, projecting mid-single-digit growth for the second half of 2025 [60][72] Question: Print margins volatility - Management acknowledged the sequential drop in print margins but expects them to recover in Q4 due to higher supplies volumes and disciplined pricing [61][66] Question: Capital allocation and leverage - The company is slightly above a 2x leverage ratio and plans to return 100% of free cash flow to shareholders as leverage improves [81][82]

Group 1 - HP Inc. will hold a live audio webcast to review its financial results for the third fiscal quarter ending July 31, 2025, on August 27, 2025, at 5:00 p.m. ET / 2:00 p.m. PT [1] - The webcast will be accessible on HP's investor relations website and a replay will be available shortly after the call for approximately one year [1] Group 2 - HP Inc. is a global technology leader operating in over 170 countries, providing a variety of innovative and sustainable devices, services, and subscriptions [2] - The company's offerings include personal computing, printing, 3D printing, hybrid work solutions, and gaming [2]

Group 1 - HP officially launched a comprehensive product matrix covering high-end business laptops, AI all-in-one machines, and intelligent solutions, integrating AI technology with local market needs to drive a revolutionary increase in productivity for enterprises [1] - The new EliteBook series high-end business laptops, Z series AI all-in-one machines, and AI business laptops are designed to provide one-stop solutions for large enterprises and growing teams, leveraging strong hardware and local AI assistants [1][3] - HP collaborates with multiple ISV ecosystem partners to showcase the practical applications of AI in vertical industries such as manufacturing, education, and retail, facilitating the transformation of technology products into industry value [1] Group 2 - On the hardware front, HP introduced several innovative products, including the Z series AI business desktop and the EliteBook X Flip G1i, which features a 360-degree flip design suitable for travel scenarios [3] - HP launched three major modules in AI applications: AI intelligent agents, AI application ecosystem, and AI intelligent services, supporting flexible access to cloud and local large models, along with practical AI training courses [3] - The company emphasizes a customer-centric and scenario-based approach to deepen the commercial value of AI, aiming to transition AI from technological innovation to a productivity engine while promoting sustainable practices in collaboration with ecosystem partners [3]

Financial Data and Key Metrics Changes - The company reported a 5% increase in revenue in constant currency year over year, marking the fourth consecutive quarter of revenue growth [8][22] - Non-GAAP operating profit fell short of expectations due to additional tariff costs, impacting earnings per share by approximately $0.12 [9][22] - Gross margin decreased to 20.7% year over year, influenced by increased tariff and commodity costs [23] Business Line Data and Key Metrics Changes - Personal Systems revenue grew 8% in constant currency, driven by strong commercial performance, with commercial revenue increasing by 9% year over year [10][25] - Print revenue declined 3% in constant currency, with growth in Europe offsetting a slowdown in North America and weak demand in China [12][27] - The company achieved strong growth in consumer subscriptions and industrial graphics within the print segment [13][28] Market Data and Key Metrics Changes - Revenue growth was observed across all regions, with APJ growing 9%, Americas growing 5%, and EMEA growing 1% in constant currency [23] - The company expects the PC market to grow low single digits for the second half of the year, influenced by macroeconomic uncertainties [19][31] Company Strategy and Development Direction - The company is diversifying its manufacturing locations to mitigate geopolitical risks, with plans for nearly all products sold in North America to be built outside of China by June [9][10] - The focus remains on executing the Future Ready Accelerated Plan, aiming for at least $2 billion in gross annual run rate structural savings by the end of fiscal year 2025 [19][28] - The company is committed to leveraging AI to enhance productivity and employee satisfaction, with a comprehensive AI PC portfolio introduced [14][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic geopolitical landscape and its impact on operating profit, emphasizing the need for cost management and pricing actions [22][23] - The company remains confident in its ability to navigate market uncertainties and achieve long-term sustainable growth [20][34] - Future growth is expected to be driven by strong demand in commercial PCs and the adoption of AI PCs [19][31] Other Important Information - The company returned approximately $400 million to shareholders through dividends and share repurchases [30] - Free cash flow was slightly negative due to timing of payments related to inventory actions taken for tariff mitigation [29][30] Q&A Session Summary Question: Expectations for the PC market in the second half of the year - Management noted strong demand in Q2 but adopted a more prudent outlook for the second half due to economic conditions and price increases [38][39] Question: Size and growth of growth businesses - Growth businesses are performing well, with AIPCs expected to represent over 25% of the PC business by year-end [45][46] Question: Personal Systems margins for the full year - Margins are expected to be in the 5% to 7% range for the full year, likely in the lower half due to Q2 impacts [51][52] Question: AI PCs and their impact on growth - AI PCs are anticipated to drive growth, with significant software support from ISVs [60][62] Question: Mitigation actions for tariff impacts - The company has accelerated the shift of factories out of China and implemented pricing actions to offset tariff costs [70][73]

Q2 FY25 Earnings Announcement May 28, 2025 Forward-looking Statements This presentation contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries ("HP") which may differ materially from those expressed orimplied by such forward-looking statements and assumptions. A ...