Goldman Sachs has included Lenovo in its July buy list, driven by infrastructure orders for sustained growth

Zhitong
2025.07.05 08:32

Goldman Sachs has included Lenovo Group in its July buy list, reflecting the market's recognition of its position in the AI industry chain and the recent acquisition of nearly 200 million yuan in intelligent rail transit orders. Lenovo, with its competitive edge in computing infrastructure and AI terminals, has become one of the few technology companies covering both hardware and services. Goldman Sachs' Earnings Revision Leading Indicator (ERLI) shows that Lenovo's earnings expectations for the next 12 months have entered the institutional upgrade channel, indicating its investment value and upside potential

On July 4th, Goldman Sachs, a globally renowned investment bank, included Lenovo Group (00992) in its buy list for Hong Kong stocks and Chinese concept stocks based on the Earnings Revision Leading Indicator (ERLI) in its July strategy report for the Asia-Pacific region. This decision reflects the market's recognition of Lenovo's comprehensive layout in the AI industry chain and resonates with the nearly 200 million yuan smart rail transit orders the company recently secured, highlighting its dual growth momentum in digitalization for government and enterprises as well as consumer-grade AI terminals.

Goldman Sachs ERLI Model Support: Lenovo's Earnings Expectations Upgraded by Institutions

Goldman Sachs released its July Asia-Pacific strategy report, listing the latest buy stocks (only Hong Kong stocks and Chinese concept stocks) according to the Earnings Revision Leading Indicator (ERLI) criteria:

Tencent (00700.HK), Alibaba-W (09988.HK), Xiaomi-W (01810.HK), AIA (01299.HK), Pinduoduo (PDD.US), Hong Kong Stock Exchange (00388.HK), Ping An Insurance (02318.HK), Kuaishou (01024.HK), China Life (02628.HK), China Pacific Insurance (02328.HK), Lenovo Group (00992.HK), Kingdee International (00268.HK), AAC Technologies (02018.HK), CICC (03908.HK), BYD Electronics (00285.HK), Miniso (09896.HK)

Lenovo Group, with its comprehensive competitiveness in computing power infrastructure, edge AI terminals, and industry solutions, has become one of the few technology companies among the 16 selected Hong Kong and Chinese concept stocks that cover both hardware and services.

Generally, stocks with a high ERLI value indicate that their earnings expectations are being revised upward, suggesting that the market is optimistic about their future development. Such stocks may have greater investment value and relatively higher potential for price increases. Lenovo's inclusion means that its earnings expectations for the next 12 months have entered the "upgrade channel" for institutions. Notably, Lenovo is listed alongside internet giants like Tencent and Alibaba, showcasing its unique value in hardware innovation.

From a market performance perspective, from June 30th to July 4th, Lenovo Group's stock price rose by 2.4% to HKD 9.66 at the close of the Hong Kong stock market, and Goldman Sachs' rating further boosts confidence in its subsequent performance.

Morgan Stanley also released a research report maintaining a target price of HKD 11.4 for Lenovo Group and an "overweight" rating. In the past 90 days, 14 investment banks have issued buy ratings for Lenovo Group, with an average target price of HKD 14.73.

Government and Enterprise Orders Materialize: Winning Nearly 200 Million Yuan Smart Rail Transit Project

Just before Goldman Sachs released its report, Lenovo won the bid for the first phase of the rail transit network operation control center project in Tianjin Binhai New Area, with a contract amount of 193 million yuan. This project covers the procurement and integration services of the central system equipment for the rail network, with a construction period from August 2025 to the end of 2026, aiming to create the "brain center" for smart rail transit in Binhai New Area. This bid not only continues Lenovo's traditional advantages in the smart city field but also marks the large-scale implementation of its AI infrastructure solutions in vertical industries In fact, Lenovo has maintained strong competitiveness in the government and enterprise market. In May of this year, Lenovo (Beijing) Information Technology Co., Ltd. successfully entered the procurement project for Haiguang chip servers, winning the bid alongside New H3C Technologies Co., Ltd. and Inspur Electronic Information Industry Co., Ltd., with a bid amount exceeding 1.1 billion yuan.

Improvement in Industry Chain Fundamentals: Exponential Growth in AI Computing Power Demand

The greater market for computing power infrastructure lies in the AI field. In the capital market, over the past week, the computing power concept has attracted significant attention, with NVIDIA continuously hitting historical highs, reaching a total market value of approximately $3.89 trillion, maintaining its position as the world's most valuable company. The ramp-up of its GB200 rack has directly driven upstream hardware demand. It is evident that there is a consensus on the improvement of the fundamentals of the current AI industry chain.

On the demand side, the token call volume of global major companies has shown explosive growth: Google's average monthly token call volume increased from 97 trillion in April 2024 to 480 trillion in April 2025, while ByteDance's Volcano Engine reached a daily call volume of 16.4 trillion, a year-on-year increase of 137 times. This hunger for computing power is expected to bring continuous orders for Lenovo's servers, storage, and liquid cooling solutions

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