CICC: Maintains "Outperform" rating and HK$51 target price for Lenovo Group (00992), bullish on AI servers and other businesses driving net margin improvement.

CICC released a research report stating that it maintains Lenovo Group's (00992) FY27/28 non-HKFRS net profit forecasts of US$4.06 billion and US$4.98 billion, and maintains an "Outperform" rating with a target price of HK$51.0. The current stock price corresponds to 13.3x and 10.8x P/E on FY27E/FY28E non-HKFRS net profit, while the target price corresponds to 20.0x and 16.3x P/E on FY27E/FY28E, implying 51% upside from the current stock price. The bank attended the Sina Finance AI Investment Summit and Lenovo Group Investor Exchange Meeting held in Beijing on September 16, where multiple members of Lenovo Group's management attended and shared views on the company's hybrid AI strategic layout and the new cycle of AI industry investment.