HK Stock Market Move | LENOVO GROUP (00992) rises more than 7% to a new high, with several institutions raising their target price after its performance. The company's ISG business has entered a period of profit release.

LENOVO GROUP (00992) rose more than 7%, hitting a high of 19.64 Hong Kong dollars, reaching a new historical high, with a post-earnings stock price increase of over 45%. As of the time of writing, it has risen by 7.04%, reaching 19.47 Hong Kong dollars, with a trading volume of 2.353 billion Hong Kong dollars. On the news front, on May 22, LENOVO GROUP announced its financial performance, showing that the company's performance in the fourth quarter greatly exceeded expectations, with revenue of 21.6 billion US dollars, a year-on-year increase of 27%, and AI-related revenue increasing by 84%, accounting for 38% of total revenue; adjusted net profit attributable to shareholders was 560 million US dollars, a year-on-year increase of 101%. Among them, the ISG business achieved revenue of 5.6 billion US dollars, a year-on-year increase of 37%, with an operating profit of 202 million US dollars, both reaching record highs for the quarter. LENOVO GROUP Chairman and CEO Yang Yuanqing stated that it is expected that within two years, the overall revenue of LENOVO GROUP will be increased to 100 billion US dollars. After the earnings release, several institutions have raised their target prices for Lenovo. Da Hua Jixian upgraded Lenovo's investment rating to "Buy" with a target price increase from 9.85 Hong Kong dollars to 20.2 Hong Kong dollars, stating that Lenovo is transforming into an artificial intelligence infrastructure company, and the personal computer business is also benefiting from the AI-driven personal computer replacement cycle. Credit Suisse raised Lenovo's target price from 12.9 Hong Kong dollars to 21 Hong Kong dollars, reiterating an "Outperform" rating. Goldman Sachs raised LENOVO GROUP's target price to 27 Hong Kong dollars in one go.