Core Insights - Lenovo is committed to accelerating China's intelligent transformation through a "hybrid AI" approach, aiming to build a robust equipment library and enhance direct customer engagement [1] - Lenovo's PC market share has increased from 35.5% in the 2017/18 fiscal year to 40.6% in the first half of the 2025 fiscal year, maintaining its leading position [1][2] - The company's revenue in the first half of the 2025/26 fiscal year grew by 24% year-on-year, setting a new record for that period [2] Customer Engagement - Lenovo's direct customer engagement model has achieved an 80% coverage rate, directly reaching 90% of the 260,000 most important enterprise clients in China [1] - The company has directly engaged nearly 10 million small and medium-sized enterprises and over 245 million individual customers, representing 41% of the effective purchasing population [1] AI Infrastructure and Solutions - Lenovo's infrastructure business revenue has grown by 175% over the past two and a half years, making it the fastest-growing AI infrastructure provider in China [2] - The "Intelligent Army" initiative includes various intelligent agents across multiple business areas, contributing to significant sales growth, with over 1.8 billion yuan in sales during the "Double 11" shopping festival [2] AI Adoption Rates - The adoption rate of personal AI among individual customers has increased from 23% to 47%, while enterprise AI adoption has surged from 30% to 92% within the year [3] - Lenovo plans to enhance its personal AI, Tianxi AI, to version 4.0 by April next year, evolving from a "helper" to a "teammate" [3] Comprehensive AI Strategy - Lenovo has developed a full-stack AI capability covering AI infrastructure, solutions, and services, with a strategy that includes a comprehensive AI computing solution and various AI service offerings [4] - The company aims to integrate over 170 intelligent agents into its business processes within the fiscal year, with an expected AI penetration rate of over 24% in L4-level processes [4]

Core Viewpoint - UBS expects Lenovo Group's upcoming earnings report to meet expectations, with adjusted profits increasing year-on-year and stable sales growth [1] Financial Performance - ISG (Infrastructure Solutions Group) is projected to grow by approximately 20% year-on-year [1] - SSG (Solutions and Services Group) is expected to see high double-digit growth [1] - Lenovo's PC business growth is anticipated to exceed market levels, with a year-on-year increase in the mid to low double digits [1] - Operating profit margin is expected to remain stable at 7% to 7.5% [1] - The net profit forecast is maintained at $440 million, up from a previous estimate of $435 million, with adjusted net profit expected to exceed prior estimates by $150 million to $200 million due to the impact of warrants and convertible interest [1] Strategic Initiatives - The company is focused on adjusting its enterprise product mix in the infrastructure business to achieve profitability, although higher storage costs will delay significant positive contributions [1] - Lenovo aims to expand its AI business, which currently accounts for a low single-digit percentage of sales [1] Target Price Adjustment - UBS has raised Lenovo Group's target price to HKD 12 [1]

Core Insights - Lenovo Group has upgraded its small and medium-sized enterprise (SME) IT procurement platform, transforming it from a traditional one-stop IT procurement platform to a one-stop intelligent IT service platform, leveraging full-stack AI products, solutions, and services [1][2] - The upgrade includes three main enhancements: cost-effective procurement, comprehensive growth empowerment, and innovative service experiences, aimed at helping SMEs seize opportunities brought by AI for rapid business growth [1][2] Group 1 - The platform introduces unprecedented inclusive policies, including procurement subsidies of up to 25%, vouchers and points for new registered customers, and member-exclusive discounts of 20%, along with customizable hardware configurations and extended warranty services [2] - Lenovo's enterprise procurement aims to reduce the burden on SMEs by providing extensive benefits that facilitate easier and more cost-effective IT upgrades [2][3] Group 2 - The Lenovo Baiying Intelligent Agent offers AI services across three main scenarios: IT operations, AI office, and AI marketing, significantly reducing IT operational costs by 50%, doubling office efficiency, and enhancing customer acquisition efficiency through intelligent tracking and targeting [3] - Financial benefits include up to 60 days of payment terms, on-site services upon purchase, and flexible leasing options to alleviate financial pressure on SMEs [3] - Lenovo's innovative "AI as a Service" (AaaS) delivery model allows SMEs to access intelligent agent functionalities through a subscription model, simplifying the implementation of complex systems [3][4]