CICC has reiterated its target price of HK$14.8 for LENOVO GROUP (00992) and an "Outperform" rating, suggesting a potential upside of 52%. The firm has kept its earnings forecasts for fiscal years 2026-2027 unchanged, as the company's overall performance exceeded expectations. This was driven by double-digit revenue growth across all three business segments and regional markets, with AI-related revenue increasing by 13 percentage points year-on-year to 30%, alongside improved operating margins.

Despite rising costs of upstream core components, CICC believes LENOVO GROUP's flexible supply chain management, long-term partnerships with key suppliers, and adaptable pricing mechanisms provide strong risk absorption capabilities. The company is also confident in achieving double-digit year-on-year growth in PC revenue for the second half of fiscal 2026.

Additionally, CICC highlighted the robust growth in LENOVO GROUP's AI infrastructure business, with cloud infrastructure revenue hitting a record high for the quarter and AI server revenue posting strong double-digit growth.