Jinwu Financial News | Goldman Sachs reports that in 2025, the revenue of Lenovo Group (00992) is expected to increase by 18% year on year, and gross margin will reach 16.6%. It is sustainable and will benefit significantly from AI PCs, AI servers, and supporting product cycles. The Group's net profit margin will gradually return to 2.7-2.8% in the 2027-2028 fiscal year, similar to the level of the 2022 to 2023 fiscal year.
Goldman Sachs lowered the company's net profit forecast for the 2025-2027 fiscal year by 16%/13%/6% and introduced the 2028 forecast. Lenovo's current market price is equivalent to trading at a price-earnings ratio of 10 times in 2025, 12.8 times lower than its peer average and 11.3 times its historical average. Goldman Sachs believes that the current valuation is quite attractive. Goldman Sachs raised the Group's target price by 4.6% from HK$12.7 to HK$13.28, maintaining the buying rating.
