Zheng Xiaoming, Senior Vice President and Chief Financial Officer of Lenovo Group, addressed the company's long-term valuation concerns during the AI Investment Summit held in Beijing on September 16, themed "The Certainty Opportunities in the AI Infrastructure Era." Speaking at a panel discussion titled "Global Pricing of AI Infrastructure: Identifying Certainty Assets for AI Investment," Zheng candidly stated that the current market valuation does not fully reflect the company's revenue, profitability, or growth trajectory.

Drawing a comparison to Dell Technologies, Zheng remarked, "Our market valuation is roughly one-seventh of Dell's, yet our revenue and net profit do not differ by a factor of seven. In this regard, we are completely undervalued by the market." He further pointed out that the growth opportunities Lenovo currently identifies are backed by concrete orders and genuine customer demand. Additionally, the company sees room for optimization in operational areas such as client acquisition and pricing strategies.

Zheng also emphasized that as businesses in storage and services continue to expand, there remains substantial potential for both business growth and margin improvement. He stressed that Lenovo's long-term net profit margin could reach 5% to 8%, benchmarked against Dell's profitability levels.

The CFO noted that AI remains in the early stages of its investment cycle. For enterprises, particularly large multinational corporations, achieving true large-scale AI implementation requires first resolving integration challenges related to internal data, organizational structures, and business processes. For companies that have undergone multiple mergers and acquisitions, integrating disparate systems can take considerable time. However, he emphasized that as enterprise AI gradually embeds into business workflows, substantial inference demand will emerge, especially in enterprise-level applications.

Meanwhile, considering cost and security factors, on-device AI also represents a significant avenue for long-term strategic positioning, an area where Lenovo is actively focusing its efforts. Zheng characterized AI as a long-term opportunity that is only in its nascent phase. For large enterprises, AI serves not merely as a productivity enhancement tool but also provides an opportunity to restructure business processes, organizational frameworks, and operational methodologies.