Shares of Lenovo Group (00992) surged more than 7% during the trading session. At the time of writing, the stock is up 4.75%, trading at HK$23.94 with a turnover of HK$1.861 billion.

A research report from CICC noted that Lenovo Group held an Investor Day in New York, where management systematically explained its hybrid AI strategy and profitability improvement roadmap. The Chief Financial Officer reaffirmed the target to achieve annual revenue of US$100 billion within 1 to 2 years and provided three-tier targets for net profit margin: reaching above 3% within 1 to 2 years; increasing to above 5% within 3 to 5 years (with corresponding revenue of US$130 billion); and achieving a long-term overall net profit margin exceeding 8% over a 5-year horizon (with corresponding revenue of US$150 billion). CICC maintained its "Outperform" rating on Lenovo Group. Considering the significant improvement in the profitability of its ISG business and potential AI server orders reaching US$21 billion, the market is expected to re-evaluate the value of its server assets. Based on a valuation of 18 times projected 2027 earnings for comparable industry peers, the firm raised its target price by 50% to HK$30.