Jingu Financial News | Guozi International released a research report, Lenovo Group (00992), as of the three months ended September 30, 2024 (2024/25Q2), total revenue was approximately $17.85 billion, a 24% year-on-year growth. Benefiting from the global investment frenzy in the field of artificial intelligence, all three major business sectors have grown; the growth of ISG business revenue with low gross margin has significantly impacted, resulting in a 1.8 percentage point year-on-year decline in overall gross margin to 15.7%; attributable net income is approximately $0.359 billion, a significant 44% year-on-year increase.

The bank pointed out that the global investment frenzy in the field of artificial intelligence has driven various aspects of the group's performance, with the smart device business (IDG), infrastructure solution business (ISG), and solution service business (SSG) revenues achieving growth of 17.4%, 65.1%, and 12.9% respectively, leading to a 23.9% year-on-year increase in overall revenue, reaching $17.85 billion.

The bank stated that the company's performance in Q2 meets market expectations, with rapid growth achieved in all business segments, demonstrating the advantages of market diversification, as well as solid innovation and financial conditions. The bank expects net income for the fiscal years 2024/25 and 2025/26 to be $1.25 billion and $14.7 billion respectively (previously estimated at $1.24 billion and $14.5 billion). The bank, based on the estimated PE ratio of 14.0x for 2024/2025E, has given a target price of HK$11.0 for the company, reflecting a 20.0% increase compared to the recent closing price, maintaining a 'buy' rating.