Jinwu Financial News | According to China Securities International Development Research, Lenovo Group (00992), the total revenue for the three months ended September 30, 2024 (2024/25Q2) was about 17.85 billion US dollars, up 24% year on year. Benefiting from the global investment boom in artificial intelligence, all three business segments grew; due to high revenue growth in the ISG business with low gross margin, the overall gross margin fell 1.8 percentage points to 15.7% year on year; net profit to mother was about 0.359 billion US dollars, a sharp increase of 44% year on year.
According to the bank, the global investment boom in the field of artificial intelligence has driven the Group's performance in many areas. The three major business segments, Smart Device Business (IDG), Infrastructure Solution Business (ISG), and Solution Service Business (SSG) business revenue, achieved 17.4%, 65.1% and 12.9% growth respectively, driving the company's overall revenue to 23.9% year-on-year increase, reaching 17.85 billion US dollars.
The bank said that the company's performance in the Q2 fiscal quarter was in line with market expectations. All business groups achieved rapid growth, the diversified advantages of the market were reflected, and the innovation capacity and financial situation were stable. The bank expects net profit for the 2024/25 and 2025/26 fiscal years to be $1.25 billion and $1.47 billion, respectively (previously estimated at $1.24 billion and $1.45 billion). Based on the projected price-earnings ratio of 14.0x 2024/2025e, the bank gave the company a target price of HK$11.0. Compared with the recent closing price, the bank maintained a “buy” rating, an increase of 20.0%.
