On September 16, LENOVO GROUP rose 3.14% in regular trading, trading at 32.24 HKD/share, with turnover of HKD 513 million. The stock gained on a dual catalyst of a landmark server market achievement and the elimination of equity dilution overhang.

According to the latest IDC data for Q2, Lenovo's global x86 server shipments reached 286,000 units, surging 45.6% year-over-year and claiming the global top spot for the first time since acquiring IBM's x86 server business in 2014. Simultaneously, Lenovo's x86 server revenue hit USD 8.26 billion, up 96% year-over-year, firmly holding global second place with the revenue share gap to Dell narrowing to just 0.6 percentage points.

Additionally, Lenovo's USD 675 million 2.50% convertible bonds due 2029 have been fully converted or will be redeemed on September 16, leaving no outstanding balance. This development completely removes the uncertainty around potential share capital dilution that had lingered over the stock. Institutional estimates had previously noted that even fully accounting for convertible bond dilution, Lenovo still offered significant valuation upside over the next two years.

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