Changes in Hong Kong stocks | Lenovo Group (00992) rose more than 4% in the afternoon, ISG's performance far exceeded expectations and is expected to drive quarterly profit improvements in the coming quarters

The Zhitong Finance App learned that Lenovo Group (00992) rose more than 4% in the afternoon. As of press release, it had risen 3.71% to HK$30.74, with a turnover of HK$2,028 billion.

According to the news, Lenovo Group recently released its results for the first fiscal quarter of the 2026/27 fiscal year. The results exceeded expectations, and both revenue and adjusted profit reached record highs. Among them, ISG's business performance was particularly impressive. In the first fiscal quarter, ISG's revenue increased 98% year-on-year to a record 57.9 billion yuan; operating profit was about 5.3 billion yuan, and the operating profit margin quickly increased to 9.1%, officially growing into the Group's new core engine for profit and growth.

Nomura released a research report saying that Lenovo Group's Infrastructure Solutions Business Group (ISG) operating margin performance was strong, far exceeding expectations, and may drive quarterly profit improvements in the coming quarters. Maintaining the “Buy” rating, the target price was raised from HK$35 to HK$45. Citi, on the other hand, said that ISG's strong momentum has opened up valuation space and reaffirmed Lenovo's “buy” rating.