LENOVO GROUP (00992) shares surged more than 5% to a high of HK$30.84, setting a new all-time record. At the time of writing, the stock was trading at HK$30.5, up 5.03%, with trading volume reaching HK$1.282 billion.

The company is set to release its first-quarter results for the 2027 fiscal year ending June 30, 2025. Ahead of the earnings announcement, several foreign brokerages, including Morgan Stanley and CLSA, have issued bullish forecasts. Morgan Stanley expects the company's adjusted net profit to reach approximately US$788 million, driven by higher revenue and profit margins from the Infrastructure Solutions Group (ISG). This represents a 102% year-on-year increase and a 41% quarter-on-quarter rise, about 12% above market consensus. The firm also believes that the market may have underestimated Lenovo's ISG order backlog and earnings execution capabilities.

JP Morgan noted that industry research shows rapid growth in AI-related customer demand for Lenovo, with the server business benefiting from favorable pricing conditions and healthy profitability. The bank expects ISG profit margins to expand further in the coming quarters, supported by operating leverage. JP Morgan estimates that AI-related revenue accounted for more than 30% of ISG revenue in the first fiscal quarter ended June 30, and projects full-year ISG revenue to grow approximately 60% year-on-year. The firm also anticipates ISG's operating profit margin to improve from 0.4% in fiscal 2026 to 5% in fiscal 2027.