Lyons issued a research report, highlighting that in the fourth fiscal quarter of Lenovo Group, which concluded in late March this year, the company's net profit, calculated under non-Hong Kong financial reporting standards, reached US$377 million. This represents a year-on-year surge of 36%, outperforming market expectations by a substantial 20%. Such remarkable performance was primarily attributed to the expansion in personal computer shipments, robust profit margins, and the server business transitioning from losses to profits. Lyons kept Lenovo's target price-to-earnings ratio steady at 10 times, but increased the target price from HK$10.4 to HK$12.9, while maintaining an 'Outperform' rating. The report noted that propelled by the robust demand for servers from cloud service providers, Lenovo's Infrastructure Solutions Group (ISG) revenue is projected to climb by 45% year-on-year and 15% quarter-on-quarter, reaching US$6 billion in the fourth fiscal quarter, with an operating profit margin of 0.6%. This strong growth trajectory is anticipated to persist into the June quarter. Lyons is of the opinion that Lenovo's business performance has surpassed expectations, and this positive momentum is likely to endure for at least the next two quarters. Consequently, Lyons has revised upwards its profit forecasts for the fourth fiscal quarter and the 2027 fiscal year, and extended the valuation framework to encompass the 2028 fiscal year.