Lenovo Group (00992.HK): AI Servers Reshape the Growth Curve — Marching Toward AI Infrastructure Platform Leadership
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Key Views
AI server backlog stood at $21 billion at FY26-end, alongside 5,800+ AI customer deployment projects and annual capacity above 70,000 racks (11,000+ liquid-cooled). The 2025 global server market hit a record $453.5 billion (+78.2%); Dell's FY27Q1 AI server revenue of $16.1 billion (+757%) and raised FY27 guidance of ~$60 billion validate the re-rating path. Lenovo's PC business held the No. 1 global position (73.6 million units, 27% share in 2025), offering resilience amid component price inflation.
Outlook
FY27–FY29 revenue is forecast at $99.67/118.09/136.30 billion (+20.0%/18.5%/15.4%); Non-GAAP net profit at $3.13/4.16/5.21 billion (+52.6%/33.0%/25.3%), with ISG revenue growth of 70%/45%/30%. Non-GAAP P/E of 14.4/10.9/8.7x sits below the peer average of ~19.1/17.1/12.7x. Risks: component cost increases, AI PC penetration, ISG margin recovery.
Recommended Securities
Lenovo Group (00992.HK): Buy, TP HK$39.60.