The Zhitong Finance App learned that Morgan Stanley released a research report saying that Lenovo Group (00992) will announce its results for the first quarter of the 2027 fiscal year ending the end of June this year next week. Driven by rising revenue and profit margins from the infrastructure solutions business, adjusted net profit will reach about US$788 million, an increase of 102% year-on-year and 41% quarterly, which is about 12% higher than market expectations. 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.

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 predicts Lenovo's revenue for the first fiscal quarter to reach US$24 billion, with year-on-year and quarterly increases of 27% and 11%. It is expected that the balance between memory supply and demand has been structurally improved due to AI demand, which is beneficial for Lenovo to pass on costs and maintain profits. It is expected that IDG's business profit margin will remain stable at 7% to 7.5%.

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