Recently, international investment bank HSBC Holdings PLC issued a research note stating that Lenovo Group's PC business continues to serve as a cash cow while the server business remains in a sustained investment phase. Consequently, HSBC maintains its "Buy" rating with a target price of HK$12.9, representing an 18% upside potential.

HSBC believes that Lenovo Group demonstrates strong momentum across both consumer and commercial PC segments:

Consumer PC: The company continues to gain market share across multiple markets, with robust demand for gaming PCs, particularly in the Chinese market. Given the steady activation rates of Lenovo Group's PC products, channel inventory levels remain healthy.

Commercial PC: Lenovo Group's management maintains an optimistic outlook regarding the commercial PC refresh cycle. According to management estimates, approximately 250 million devices globally still operate on Windows 10, which could serve as a core growth driver for future PC upgrade cycles. Before fiscal year 2026 (FY26), commercial PC replacements will continue to support margin growth for the Intelligent Devices Group (IDG) business.

Regarding tariff impacts, Lenovo Group has relocated its PC production capacity serving the U.S. market to Vietnam, thereby limiting tariff exposure on its PC business. Despite tariff policy uncertainties, the company's globalized production footprint provides enhanced flexibility to respond to dynamic market changes.

The ISG (Infrastructure Solutions Group) business remains in a sustained investment phase, with increased strategic investments in the small and medium enterprise sector and enhanced investments in AI server capabilities to achieve superior operational leverage.