Hardware business sees headwinds; robust server and service business to sustain growth
- 2QFY3/23 net profit rose 6% y-o-y to US$ 541m, in line with the market consensus, driven by margin expansion
- Operating margin increased 0.2ppt y-o-y to 5%, on increased contribution from the service business
- Cut FY3/23-FY3/24 earnings by 10%/24% due to more cautious outlook
- Lower TP to HK$10.1 but maintain BUY on strong earnings growth of 18%/21% in FY24/25F and an undemanding valuation
