Lenovo Group (00992) saw its shares climb more than 4% during the afternoon trading session, last up 3.71% at HK$30.74, with turnover reaching HK$2.028 billion.

The company recently released its first-quarter results for the 2026/27 fiscal year, which surpassed market forecasts, with both revenue and adjusted profit hitting record highs. The Infrastructure Solutions Group (ISG) emerged as the standout performer, delivering a remarkable 98% year-on-year revenue surge to a record RMB 57.9 billion. Operating profit for the segment reached approximately RMB 5.3 billion, with the operating margin rapidly expanding to 9.1%, firmly establishing ISG as the group's new core engine for profit and growth.

Nomura issued a research note stating that Lenovo Group's ISG operating margin performance came in much stronger than anticipated, which could drive sequential profit improvements over the next several quarters. The brokerage maintained its "Buy" rating while raising its target price from HK$35 to HK$45. Meanwhile, Citi echoed the positive sentiment, reiterating its "Buy" call on Lenovo Group, citing the strong momentum in ISG as opening up valuation upside.