CLSA: Reiterates LENOVO GROUP (00992) as Top Pick Among Chinese Tech Stocks, Maintains "Outperform" Rating

CLSA issued a research report reiterating LENOVO GROUP (00992) as its top pick among Chinese tech stocks, maintaining an "Outperform" rating with a target price of HK$48.7. Akamai Technologies (AKAM.US) recently announced a seven-year cooperation agreement with AI company Anthropic, and disclosed a supply agreement with Lenovo, under which Lenovo will provide hardware, software and related services to Akamai. The master agreement has a term of three years, while the first Statement of Work has a term of seven years, matching the duration of the cooperation between Akamai and Anthropic, reflecting that Lenovo's ISG business is securing long-term cooperation opportunities with various new AI customers. Akamai did not disclose the amount involved in the cooperation agreement with Lenovo, while the cooperation between Akamai and Anthropic is worth US$11.6 billion, with the potential total increasing to approximately US$20 billion, and approximately US$5.5 billion in capital expenditure is expected to be invested to fulfill the contract. The bank noted that procurement by Lenovo and Jabil comes from this budget, and the seven-year SoW is expected to provide revenue visibility. It believes Lenovo can directly benefit from Akamai's AI development supported by Anthropic's commitments and related capital expenditure.