LENOVO GROUP(00992) 太平洋·2024-11-19 00:44Investment Rating - The report maintains a "Buy" rating for Lenovo Group (00992) with a target price based on the last closing price of HKD 9.17 [1]. Core Insights - Lenovo Group's performance slightly exceeded expectations, with rapid growth across all business segments. The company reported a revenue of USD 33.297 billion for the first half of FY24/25, representing a year-on-year increase of 22%, and a net profit of USD 600.2 million, up 41% year-on-year [3][4]. Financial Performance - For the first half of FY24/25, Lenovo's gross margin was 16.08%, a decrease of 1.40 percentage points compared to the same period last year, primarily due to the rapid growth of the Infrastructure Solutions Group, which has a relatively lower margin [3]. - The sales expense ratio decreased by 0.71 percentage points to 5.12%, while the management expense ratio fell by 0.32 percentage points to 4.20% [3]. Business Segment Performance - The Intelligent Devices Group achieved revenue of USD 24.936 billion, a year-on-year increase of 14.52%, with an operating profit margin of 7.29%, up 0.41 percentage points from the previous year. The growth was driven by increased average selling prices and the rise of products like AIPC and smartphones [4]. - The Infrastructure Solutions Group reported revenue of USD 6.465 billion, a significant year-on-year increase of 65.13%, with strong growth in servers, storage, and high-performance computing [4]. - The Solutions Services Group generated revenue of USD 4.050 billion, reflecting a year-on-year growth of 11.54%, with an operating profit margin of 20.69% [4]. Future Outlook - The demand for artificial intelligence is driving rapid growth in the Infrastructure Solutions Group, with non-PC revenue reaching a record high of 46% of total revenue. The company has risen to the fifth position globally and third in China in the infrastructure solutions market [4]. - The report projects EPS for FY24/25, FY25/26, and FY26/27 to be USD 0.10, USD 0.12, and USD 0.14, respectively, maintaining a "Buy" rating based on positive revenue and profit growth trends [5][6].