In "Major Banks," China International Capital Corporation: Lenovo's third-quarter performance exceeded expectations, raising the annual net profit forecast

According to a research report by CICC, Lenovo Group (00992.HK) is expected to achieve revenue of USD 22.204 billion in the third quarter of the fiscal year 2026, representing an 18% year-on-year growth; the net profit under non-Hong Kong Financial Reporting Standards is projected to be USD 589 million, a 36% year-on-year increase; the net profit attributable to shareholders is expected to be USD 546 million, a 21% year-on-year decline, which includes a non-cash fair value gain related to warrants of USD 186 million and a one-time restructuring cost related to the Infrastructure Solutions Group (ISG) of USD 285 million.

The bank stated that the overall performance exceeded expectations, mainly due to a 72% year-on-year growth in AI-related businesses, which has become an important growth engine for the company, accounting for 32% of revenue. At the same time, effective cost control has led to an increase in operating profit margin by 0.6 percentage points year-on-year to 4.3%.

Based on the continuous increase in PC market share and the cost reduction effect brought about by the company's effective expense control, the bank has raised its forecast for net profit under non-Hong Kong Financial Reporting Standards for the fiscal year 2026 by 6.5% to USD 1.801 billion, while the profit forecast for fiscal year 2027 remains largely unchanged; it maintains an "outperform the industry" rating and a target price of HKD 14.8