Komo: Raising the target price of Lenovo Group (00992) to HK$50 and drastically increasing earnings estimates for the first fiscal quarter, far exceeding expectations

The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that it is optimistic about the improvement in server profitability of Lenovo Group (00992). It is expected that the ISG business will be the core profit engine in the medium term, and the profitability of the IDG business is also better than market expectations. It believes that Lenovo can use its excellent supply chain management capabilities and scale advantages to continue to outperform its peers, increasing its adjusted net profit forecast by 63%, 51% and 40% for each fiscal year 2026 to 28. The price-earnings ratio will rise sharply by 63%, 51%, and 40%. The price-earnings ratio for the next 12 months will rise sharply by 63%, 51%, and 40%. 7% to 50 HKD, rating “gain”.

Lenovo Group's profit for the first quarter of the 2027 fiscal year ended at the end of June far exceeded Xiaomo's expectations. The PC, server and SSG business performance was surprising. Demand for AI servers was strong during the period, and accumulated orders doubled to US$54 billion quarterly. IDG business profit margins remained resilient, and SSG business growth accelerated and profit margins increased.