Gelonghui May 27| Bank of America Securities releases reportseagames2023, referring to a year-on-year increase in Lenovo Group's net profit for the fourth quarter ended March this year.seagames2023.18 times to US$248 million, significantly higher than the bank's and market expectations of 63% and 56%, respectively, and quarterly operating profit was broadly in line with expectations. According to the report, quarterly sales of the company's Intelligent Device Business Group (IDG) rose by 7% year-on-year, and gross profit margin rose to a historical high of 7.4%, benefiting from the expansion of commercial business sales. The bank's business momentum continues, based on the company's leadership position in relevant business sectors. Artificial intelligence computers are expected to be delivered in the second half of the year. With the gradual increase in penetration, the average selling price per machine and gross profit margin will also help cope with rising component costs. The bank raised Lenovo Group's target price from HK$9.1 to HK$11.6, which is equivalent to a forecast P/E ratio of 14 times for the 2025 fiscal year (originally 11 times), and raised its profit forecast for this year and next fiscal year by 2%, maintaining a "neutral" rating.
