UOB Kay Hian issued a research report stating that LENOVO GROUP (00992.HK) +4.320 (+21.951%) Short selling $3.61B; Ratio 20.693% delivered strong results for its fourth fiscal quarter, with revenue rising 27.1% YoY to USD21.6 billion. All three business segments exceeded the brokers and market expectations. Among them, the Infrastructure Solutions Group (ISG) saw profitability significantly surpass forecasts, with operating margin surging YoY to 3.6%. During the period, artificial intelligence-related revenue jumped 84% YoY and now accounts for 38% of the Groups total revenue.The broker noted that Lenovo is transforming into an artificial intelligence infrastructure enterprise, while its personal computer business is benefiting from an AI PC replacement cycle driven by agentic AI. Management expects ISG to continue delivering high double-digit growth throughout fiscal year 2027, supported by strong demand for AI servers and growth in the CPU server business.Related News M Stanley: LENOVO GROUP (00992.HK) Neptune Liquid Cooling Technology Has Over 5,000 ClientsUOB Kay Hian raised its earnings forecasts for Lenovo for fiscal years 2027 and 2028 to reflect robust demand for premium PCs, a significant turnaround in the ISG business, and better-than-expected monetization of the TruScale business. The broker upgraded the investment rating to Buy and lifted the TP from HKD9.85 to HKD20.2, implying a forecast fiscal year 2027 PE of 13.2x, in line with the industry average. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-29 16:25.)
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