CICC: Raise target price of Lenovo Group (00992.HK) to HK$30, maintain outperform rating

According to the Wisdom Financial APP, CICC has issued a research report stating that it maintains Lenovo Group's (00992.HK) profit forecast and outperform industry rating, with the current stock price corresponding to a P/E ratio of 14.9/11.9 times for FY27/28. Considering that the company's ISG profitability has significantly improved and potential orders for AI servers reach $21 billion, the bank believes that the market is expected to reevaluate the value of the company's server assets; at the same time, the company has set a long-term target of 8% net profit margin, providing a clear guideline for improving profitability. The bank believes that the company's P/E valuation is expected to continue to approach the industry average. Based on comparable industry P/E valuations, the bank has raised the company's target price by 50% to HK$30 in FY2027 with an 18 times P/E, corresponding to a 28% upside.