According to a research report published by Morgan Stanley, Lenovo Group will announce first-quarter results next week, forecasting revenue of 24 billion US dollars, up 27% year on year and 11% month on month. Driven by rising revenue and profit margins from infrastructure solutions, adjusted net profit is predicted to reach about US$788 million, up 102% year on year and 41% month on month, about 12% higher than market expectations. Damo pointed out that supply chain channel data continues to show that AI and general server orders continue to be strong, and it is believed that the market may have underestimated Lenovo ISG's order backlog and profitable execution capacity. Damo currently expects that the balance between memory supply and demand has been structurally improved due to AI demand, which will help Lenovo pass on costs and maintain profits. It is expected that the IDG business profit margin will remain stable at 7% to 7.5%. The bank's forecast for Lenovo's adjusted net profit for the 2027-2029 fiscal year was 14%, 20% and 25% higher than market expectations. The target price was raised from HK$30 to HK$34, maintaining an “incremental” rating.

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