HK Stock Market Move | LENOVO GROUP (00992) rises over 5% again; CFO Zheng Xiaoming says Lenovo's valuation is severely undervalued, with future net margin benchmarked against Dell.

LENOVO GROUP (00992) rises over 5% again. As of press time, it is up 5.13% at HK$36.08, with turnover of HK$1.591 billion. On the news front, on September 16, at the "AI Investment Summit," regarding LENOVO GROUP's long-term valuation issue, LENOVO GROUP Senior Vice President and Chief Financial Officer Zheng Xiaoming said bluntly that the current market for Lenovo has not fully reflected the company's revenue, profitability, and growth prospects. Using Dell Technologies as a reference, he said, "Our valuation is about one-seventh of Dell's, but our revenue and net profit are not 7 times different. In this regard, we are completely undervalued by the market." Zheng Xiaoming also pointed out that the growth opportunities Lenovo currently sees are supported by real orders and customer demand, and the company itself still has room for further optimization in operating areas such as customer expansion and pricing. In addition, with the further development of businesses such as storage and services, Lenovo still has considerable room for improvement in business net margin. He emphasized that Lenovo's long-term net margin can reach 5%-8% in the future, benchmarked against Dell's profitability level.