Dahua Jixian: Lenovo Group (00992.HK) rating upgraded to "buy" target price raised to 20.2 Hong Kong dollars.

According to the AI Financial APP, Daiwa Research recently released a report stating that Lenovo Group (00992.HK) had a strong performance in the fourth quarter, with revenues increasing by 27.1% year-on-year to $21.6 billion. All three business segments exceeded both the bank's and the market's expectations. The Infrastructure Solutions Group (ISG) had significantly better than expected profitability, with operating profit margin increasing to 3.6% year-on-year. Revenue from artificial intelligence-related business surged by 84% in the period, now accounting for 38% of the group's total revenue. The bank upgraded Lenovo's investment rating to "buy", with a target price raised from 9.85 Hong Kong dollars to 20.2 Hong Kong dollars, equivalent to a predicted P/E ratio of 13.2 times for the 2027 fiscal year, in line with the industry average.