LENOVO GROUP(HK:00992) Ge Long Hui·2025-05-28 18:12Core Viewpoint - Lenovo Group reported strong financial performance for FY2025, with significant revenue and profit growth, despite a decline in net profit in Q4 due to non-cash losses from warrants [1] Group 1: Financial Performance - For FY2025, Lenovo achieved revenue of approximately $69.077 billion, a year-on-year increase of 21.41%, and a net profit of approximately $1.384 billion, up 37.01% [1] - In FY2025 Q4, the company reported revenue of approximately $16.984 billion, a year-on-year increase of 22.50%, but a quarter-on-quarter decrease of 9.64%; net profit was approximately $90 million, down 63.72% due to non-cash warrant losses [1] - Excluding non-cash expenses, the non-HKFRS net profit for Q4 was approximately $278 million, reflecting a year-on-year increase of 25% [1] Group 2: Intelligent Devices Group (IDG) - The IDG segment generated revenue of $51 billion for FY2025, a 13% increase, with an operating profit margin of 7.2%, leading the industry [2] - In FY2025 Q4, IDG revenue was approximately $11.814 billion, also a 13% year-on-year increase, with an operating profit margin of approximately 6.8% [2] - Lenovo's global PC market share increased by 1 percentage point to 24% [2] Group 3: Infrastructure Solutions Group (ISG) - The ISG segment achieved revenue of $15 billion for FY2025, a significant year-on-year increase of 63%, and turned profitable in the second half of the fiscal year [2] - In FY2025 Q4, ISG revenue was approximately $4.12 billion, with a year-on-year growth of 63% and an operating profit margin of approximately 0.1% [2] - The ODM+ model contributed to strong growth in cloud service provider business and balanced growth in sales and profits for small and medium-sized enterprises [2] Group 4: Solutions and Services Group (SSG) - The SSG segment reported revenue of approximately $8.5 billion for FY2025, a 13% increase, with operating profit reaching a record high of $1.8 billion, up 15% [3] - In FY2025 Q4, SSG revenue was approximately $2.15 billion, reflecting an 18% year-on-year increase, with an operating profit margin of 22.7% [3] - The growth in support service orders was driven by improved user experience and the success of digital workplace solutions and hybrid cloud services [3] Group 5: Future Outlook - Revenue forecasts for FY2026 to FY2028 are projected at $76.37 billion, $82.73 billion, and $87.21 billion, respectively, with non-HKFRS net profits of $1.601 billion, $1.874 billion, and $2.218 billion [4] - The company maintains a "buy" rating, anticipating performance improvement driven by the accelerated integration of AI features across various devices [4]