Citi: Lenovo Group (00992.HK) reported first-quarter results far exceeding expectations, validating the narrative of AI growth.

According to the Zhichong Finance APP, Citigroup has released a research report stating that based on the sum-of-the-parts valuation method, it has set the target price for Lenovo Group (00992.HK) at HKD 31, corresponding to an estimated price-to-earnings ratio of about 13.6 times for the fiscal year 2028. Among these, the IDG and SSG businesses are valued at a P/E ratio of 10 times, while the ISG business is valued at a 16.7 times P/E ratio, which is in line with industry levels. The bank maintains a "Buy" rating for Lenovo Group, optimistic about the strong demand outlook and profitability in the server market, as well as the stable performance of personal computers, mobile phones, and services.