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Lenovo shares rise nearly 3% as Citi sees system-level revaluation from accelerated supernode commercialization
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Lenovo Group (00992) saw its stock rise nearly 3% in afternoon trading, reaching 37.08 Hong Kong dollars. The move followed a research report from CICC, which stated that after an investor conference, the company clarified its long-term profitability improvement path. CICC noted that with the acceleration of super node commercialization, Lenovo's competition in the AI infrastructure field is extending from single-server to system-level capabilities. CICC maintained an 'outperform' rating and a 51 Hong Kong dollar target price. Separately, Lenovo's Senior Vice President and CFO, Zheng Xiaoming, stated that the company's valuation is roughly one-seventh of Dell's, despite revenue and net profit not being seven times lower, suggesting the market undervalues Lenovo. He forecasted a long-term net profit margin of 5%-8%, comparable to Dell's profitability.
Source report
Hong Kong, September XX (via Zhitong Finance) — Shares of Lenovo Group (00992.HK) rose nearly 3% in afternoon trading. As of press time, the stock was up 2.94% at HK$37.08, with a trading volume of HK$858 million.
Citi Research Highlights Long-Term Profitability Path
Citi Research issued a report stating that following its participation in the Sina Finance AI Investment Summit and Lenovo Group investor meeting on September 16, the company has further clarified its long-term profitability improvement trajectory. Additionally, with the acceleration of super-node commercialization, Lenovo's competition in the AI infrastructure space is extending from standalone server offerings to system-level capabilities.
Citi maintains an "Outperform" rating on Lenovo Group with a target price of HK$51.
CFO: Lenovo Significantly Undervalued Compared to Dell
Notably, Lenovo Group Senior Vice President and Chief Financial Officer Zheng Xiaoming recently stated that Lenovo's valuation is approximately one-seventh that of Dell, yet the company's revenue and net profit are not seven times lower. "In this regard, we are completely undervalued by the market," he emphasized.
Zheng added that Lenovo's long-term net profit margin is expected to reach 5%–8%, aligning with Dell's profitability levels.
Source
智通财经Eastern
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Lenovo Shares Rise Nearly 3% as CICC Reaffirms Outperform Rating on AI Infrastructure Push