STOCKS | Lenovo's Quarterly Profit Exceeds Expectations, Goldman Sachs Reports

Goldman Sachs released a report on May 22, stating that Lenovo Group's quarterly performance surpassed expectations. According to Jin10, the company's net profit decreased by 5% quarter-on-quarter to $521 million, exceeding Goldman Sachs' and market forecasts by 269% and 63%, respectively. This was primarily due to stronger-than-expected revenue and gross margin. Revenue fell by 3% quarter-on-quarter, yet it was still 20% and 13% higher than Goldman Sachs' and market expectations, despite the off-season and rising storage costs. The gross margin remained at 16.4%, consistent with the December 2025 quarter, and above Goldman Sachs' and market forecasts of 14.9% and 14.8%, respectively, leading to a 6% quarter-on-quarter increase in gross profit, which was 32% and 24% higher than Goldman Sachs' and market predictions. The operating expense ratio was 12.3%, aligning with Goldman Sachs' estimate. Goldman Sachs has rated Lenovo Group as a buy, with a target price of HKD 12.53.