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2026-06-29 12:06:26 UBS issued a report stating that LENOVO GROUP (00992.HK) held its Investor Day in New York last Thu (25th). Its Chief Executive Officer, Chief Financial Officer, and heads of the Devices, Infrastructure and Services business units delivered presentations and participated in Q&A sessions. More than 200 online and in-person investors/analysts attended. The focus was on the company癒礎s ability to leverage its scale, market position and "all-weather AI" strategy to sustain approximately 10% sales growth over the next five years and to lift net profit margin from 2.5% to above 8%, covering AI applications in cloud infrastructure, devices (smartphones, personal computers and wearables), and support services. The report noted that although there were no short-term updates during the event, management aims to increase revenue from USD83 billion in FY2026 (March year-end) to USD100 billion by FY2028 (close to UBS癒礎s forecast of USD101.5 billion), and to expand net profit margin from 2.5% to above 3% (versus UBS癒礎s forecast of 2.3%). On this basis, the company expects revenue to further rise to above USD130 billion with net profit margin exceeding 5% within three to five years, and to above USD150 billion with net profit margin exceeding 8% in more than five years. The company believes sales growth will be driven by: leveraging on-device AI capabilities to reduce token costs of leading-edge cloud AI, thereby gaining share in the PC/smartphone markets; expanding into more wearables/peripheral products; infrastructure growth after restructuring, focusing on providing ODM+services to cloud service providers (CSPs) and OEM services for full-stack hybrid AI solutions to enterprise customers; and services growth driven by subscription models and AI value-added services. UBS said the tone of Lenovo癒礎s Investor Day was in line with market optimism, reflecting confidence in infrastructure growth with sustainable margins, relatively better device resilience versus peers, and a cloud-to-edge AI-centric strategy. However, updates on the short-term outlook were limited. Shipment slowdown is expected to be offset by higher pricing to pass through component costs. The broker continues to view growth and improvement in the Infrastructure Solutions Group (ISG) and Solutions & Services Group (SSG) as sustainable, but balanced by device slowdown and component cost pressures (accounting for 65% of FY2027 revenue) relative to other areas of the AI supply chain. UBS therefore maintained its Neutral rating with a TP of HKD18. (da/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |