Summary of Key Points Core Viewpoint - As of July 3, a total of 120 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - 富誉控股 (Fuyou Holdings) at 90.76%, closing at 0.435 with a peak of 0.475 [1] - 信义能源 (Xinyi Energy) at 65.00%, closing at 1.200 with a peak of 1.980 [1] - 中国三三传媒 (China San San Media) at 42.86%, closing at 1.710 with a peak of 1.900 [1] Group 2: Additional Notable Stocks - Other notable stocks include: - ITE HOLDINGS at 34.21% increase, closing at 0.047 with a peak of 0.051 [1] - 星凯控股 (Xingkai Holdings) at 30.00%, closing at 0.480 with a peak of 0.650 [1] - 北京北辰实业股份 (Beijing Beichen Industrial) at 26.47%, closing at 0.940 with a peak of 1.290 [1] Group 3: Overall Market Trends - The overall trend shows a significant number of stocks achieving new highs, reflecting positive investor sentiment and market conditions [1].

Core Viewpoint - Goldman Sachs reports a positive outlook on the demand for AI/AR glasses, aligning with the company's expectations for shipment growth and future market development, driven by affordability, increasing use cases, and integration of AI features [1] Group 1: Market Growth and Demand - The AI/AR glasses market in China is expected to grow at a compound annual growth rate (CAGR) of 56% from 2024 to 2030, reaching an estimated 7 million units by 2030 [1] - The management believes that the existing core business will continue to grow while expanding into the AI/AR glasses sector to capture a larger target market [1] Group 2: Product Development and Customization - The average selling price of prescription lenses for AI/AR glasses is significantly higher than traditional spectacle lenses, with flagship models using 1.74 high refractive index lenses that are 43% thinner and 32% lighter than 1.50 organic materials [2] - The company has established collaborations with several global technology and consumer electronics firms and is involved in the development of glasses [2] Group 3: Production Capacity and Expansion - The company possesses large-scale production capabilities and has accumulated experience in mass production, enabling it to produce millions of customized lenses in a short time [2] - A new factory in Thailand is expected to commence operations in 2026 as part of the company's global capacity expansion strategy [2] Group 4: Strategic Initiatives - The management is optimistic about the growth potential of the AI/AR glasses market and sees the company as a major beneficiary due to its expertise in providing customized lenses [3] - To expedite the ordering process for end consumers, the company plans to collaborate with offline stores by providing automatic refractors for Chinese customers [3]

Investment Rating - The report does not provide a specific investment rating for Conant Optical (2276.HK) as it is categorized as "Not Covered" [1]. Core Insights - Conant Optical is expanding its business from traditional spectacle lenses to AI/AR glasses, anticipating sustained growth in its core business and increased demand for AI/AR glasses due to their higher dollar content and specific client requirements [1][2]. - The company is positioned to benefit from the growing AI/AR glasses market, with expectations of a 56% CAGR in shipments in China from 2024 to 2030, reaching 7 million units by 2030 [2]. - Conant's customized lenses for AI/AR glasses are designed to be lighter and thinner, with a significant increase in average selling price (ASP) compared to traditional lenses [4]. Summary by Sections Company Profile - Conant Optical is a leading resin lenses manufacturer in China, with 44% of its revenues from standardized lenses, 37% from functional lenses, and 19% from customized lenses, which have a higher gross margin [3]. - The company operates in 90 countries and ranks among the top 10 resin lenses manufacturers globally by revenue [3]. Market Outlook - Management expresses optimism about the AI/AR glasses market's growth potential, indicating that Conant will be a key beneficiary due to its customized lens solutions for both global and local clients [8]. - The company plans to enhance its market presence by partnering with offline stores in China to facilitate the lens ordering process for consumers [8]. Production Capabilities - Conant has demonstrated strong mass production capabilities, allowing it to produce millions of customized lenses quickly, supported by its precision manufacturing skills [7]. - The company is expanding its production capacity with a new plant in Thailand expected to commence operations in 2026 [7].

Investment Rating - The report maintains a positive outlook on the smart glasses industry, indicating a robust growth trajectory and recommending attention to key players such as 康耐特光学, 明月镜片, 博士眼镜, and 英派斯 [5][31]. Core Insights - The smart glasses market is experiencing rapid growth, driven by the introduction of AI and AR glasses, with significant potential for long-term expansion [2][6]. - The industry is at a pivotal point where traditional eyewear is evolving, and midstream lens manufacturing and downstream eyewear channels remain crucial [3][7]. - The report highlights the increasing integration of advanced functionalities in smart glasses, which enhances user interaction and expands application scenarios [18][19]. Summary by Sections 1. Smart Glasses: AI and AR Glasses Flourishing - AI glasses, exemplified by Meta's RayBan Meta, have ignited market interest, with significant sales growth expected [24][29]. - AR glasses are evolving with continuous optical solution iterations, broadening their application scope [6][18]. - The market is witnessing a surge in domestic players, with companies like 雷鸟创新, Xreal, and Rokid rapidly developing their product lines [4][6]. 2. Transformation of Traditional Eyewear - The midstream lens manufacturing sector is seeing steady global demand growth, with a shift towards higher-value, functional products [4][7]. - Downstream channels, particularly offline retail, play a vital role in capturing consumer trends and facilitating product development [9][7]. - The report emphasizes the importance of collaboration between smart glasses manufacturers and established eyewear retailers to enhance market penetration [9][7]. 3. Key Companies to Watch - 康耐特光学 is positioned as a leading lens manufacturer, focusing on domestic market growth and XR business opportunities [5][31]. - 明月镜片 is enhancing its product structure and actively engaging in high-growth segments like AI glasses [5][31]. - 博士眼镜 is expanding its retail presence and integrating smart glasses into its service offerings [5][31]. - 英派斯 is diversifying into the AI glasses sector while maintaining steady growth in its core fitness equipment business [5][31].

Group 1: Hong Kong Stocks - Lehua Entertainment (02306) surged over 24% due to strong market performance of its toy IP "WUKUKU," with multiple new products setting sales records and the theme song exceeding 1 billion views [1] - United Energy Group (00467) rose over 7% after signing a 15-year production increase contract with Uzbekistan's UNG, involving 57.8 billion cubic meters of oil and gas production, with an initial investment of $100 million to expand into Central Asia [1] - Smoore International (06969) fell over 3% as shareholder Yiwei Lithium Energy plans to reduce its stake by 3.5% (216 million shares), resulting in a decrease of its holding to 27.23%, no longer being the controlling shareholder [1] - New World Development (00200) dropped over 5% after completing a "2 for 1" rights issue, issuing 758 million shares and raising HKD 771 million, with oversubscription of 13 times [1] - Fourth Paradigm (06682) increased over 7% after launching AI solutions for the manufacturing industry, covering production optimization to supply chain intelligence upgrades [1] - Shandong High-Tech Holdings (00412) rose over 4% as Zhongtai Securities highlighted significant synergy between its new energy and digital infrastructure, with a data center PUE value of 1.15, enhancing financial integration [1] - KANAT Optical (02276) increased over 4% due to an explosion in the smart glasses market (e-commerce transactions up 8 times), with Meta collaborating with Oakley to launch AI glasses, positioning the company with leading 3C enterprises [1] Group 2: Other Notable Stocks - Sipai Health (00314) rose over 7% after partnering with Anruijiaer to develop customized insurance, planning to sell 6 pharmacies for 5.89 million to focus on core medical insurance business [2] - SF Express (09699) increased over 5% after raising its delivery service revenue cap for 2025/26 to HKD 12.8 billion / HKD 20.5 billion, with demand growth exceeding expectations [2] - Liufu Group (00590) fell over 3% as it projected a 40% decline in profits for the 2025 fiscal year, primarily due to gold hedging losses and high base effects from acquisition gains [2] - Zhenjiu Lidu (06979) rose over 4% after announcing Yao Annan as the "Cultural Heritage Ambassador" for liquor, leveraging Huawei-related topics to boost brand visibility [2] - Ideal Auto-W (02015) dropped over 4% as Meituan's Wang Xing sold 5.73 million shares for HKD 600 million, reducing his stake to 20.61% [2] - Health Road (02587) surged over 7% as its liver disease AI management platform was selected for Beijing's digital medical verification program, supporting WHO's "2030 Hepatitis Elimination" goal [2] - Gilead Sciences-B (01672) rose over 5% after its psoriasis oral drug ASC50 completed the first dosing in Phase I clinical trials in the U.S., targeting the IL-17 pathway [2] - China Silver Group (00815) increased over 10% after partnering with Zefeng Gold to acquire a 55% stake in a lead-zinc exploration company, gaining exploration rights over 50.8 square kilometers in Tibet [2] Group 3: U.S. Stocks - Verve Therapeutics (VERV.US) skyrocketed over 80% as Eli Lilly prepares to acquire the gene-editing company for up to $1.3 billion, with $1 billion as an upfront payment and $300 million contingent on specific clinical milestones [4] - Solar energy stocks plummeted, with Sunrun (RUN.US) down over 40%, Solaredge Technologies (SEDG.US) down over 41%, and First Solar (FSLR.US) down over 22%, following a Republican proposal in the U.S. Senate to terminate wind and solar tax credits by 2028, raising concerns about the industry's outlook [4] - Reddit (RDDT.US) rose over 6% after launching the AI advertising tool Reddit Insights, enhancing ad targeting through real-time user trend analysis [4] - Bitcoin-related stocks fell, with CleanSpark (CLSK.US) down over 7% and Riot Platforms (RIOT.US) down over 5%, as Bitcoin prices dropped nearly 2% to $105,580 amid escalating tensions in the Middle East and high leverage positions in the derivatives market [4] - AMD (AMD.US) continued to rise 0.56% after officially launching the Zen5 architecture Ryzen Threadripper processors, covering the workstation and desktop markets, with a market share close to 50% in China for Q1, although there are concerns about its cost-performance ratio [5] - Brain Regen Technologies (RGC.US) surged over 30% after announcing a 38-for-1 stock split, coupled with FDA clinical trial approval news, although its actual business has no revenue and a very small float, indicating significant retail speculation [6] - Jabil (JBL.US) rose over 8%, reaching a new all-time high of $202.5, with Q3 revenue increasing 15% year-on-year to $7.83 billion, raising its full-year revenue forecast to $29 billion and planning a $500 million investment to support AI data center infrastructure [6] - Niu Technologies (NIU.US) increased over 11% after launching its new NX Play electric motorcycle on Douyin, integrating a smart riding system to enhance user experience [6] - T-Mobile US (TMUS.US) fell nearly 4% as SoftBank sold 21.5 million shares at $224 each, a 3% discount, triggering market sell-off [6] - The pharmaceutical sector saw widespread declines, with Eli Lilly (LLY.US) down over 2% and Novo Nordisk (NVO.US) down over 3%, as concerns grew over the potential impact of the U.S. Senate tax bill on the industry, coupled with profit-taking ahead of some companies' earnings reports [6] - The gold sector declined, with Gold Fields (GFI.US) down over 2.1%, and spot gold fell 0.27% to $3,375.53, as easing tensions in the Middle East reduced safe-haven demand, alongside Citigroup's bearish long-term gold price forecast [7]

Group 1: Stock Movements in Hong Kong Market - Youqu Holdings (02177) surged over 24% as it actively expands into the health sector with the launch of the Canadian anti-aging health food brand Vanpearl containing ergothioneine [1] - Longfly Fiber Optics (06869) rose nearly 10% following the commencement of mass production at its advanced Wuhan base, successfully producing its first 6-inch silicon carbide wafer [1] - SF Holding (06936) increased over 5% with a reported 19.1% year-on-year growth in express delivery volume in April 2025, reaching 16.32 billion parcels [1] Group 2: Notable Developments in Other Companies - Alibaba Pictures (01060) gained over 4% after announcing a name change to Damai Entertainment, indicating a focus on offline performances and IP derivatives [2] - Innovent Biologics (01801) rose over 4% after presenting promising results for its innovative drug IBI343 for treating advanced pancreatic cancer at the 2025 ASCO annual meeting [2] - Ideal Auto (02015) saw a rise of over 6% with May deliveries reaching 40,856 units, marking a 16.7% year-on-year increase [4] Group 3: U.S. Market Highlights - Ferguson (FERG.US) increased by 2.9% with Q3 sales of $7.621 billion, a 4.3% year-on-year growth, exceeding market expectations [5] - Credo Technology (CRDO.US) surged over 14% with Q4 revenue of $170.3 million, a 179.7% year-on-year increase [6] - Nvidia (NVDA.US) rose by 2.8% as UBS projected significant revenue from a new AI data center project in Texas [6]

Group 1 - Company plans to invest $4 million in Japan to build an automated resin lens production line, expected to be operational by July 31, 2025, with a production capacity increase of 20% compared to existing facilities [1] - The new factory will help mitigate potential tariff risks, as 13% of the company's revenue comes from the U.S. market, allowing direct shipments to the U.S. post-construction [1] - The factory's location in Japan is expected to enhance service speed for Asia-Pacific customers, with significant revenue growth in the region [1] Group 2 - The U.S. resin lens market is relatively stable, with high channel markup, indicating low sensitivity to tariff-induced price increases, thus minimizing the impact of tariffs on the U.S. market [2] - The company is leveraging both its own brand and ODM partnerships to drive growth, with plans to replicate successful models domestically [2] - The company is actively collaborating with leading 3C brands in the smart glasses sector, indicating strong growth potential [3] Group 3 - Projected net profits for the company are estimated at 540 million, 670 million, and 840 million yuan for the years 2025 to 2027, with corresponding PE ratios of 20, 16, and 13 [3] - The target price is set at 40.5 HKD, maintaining a "strong buy" rating based on DCF valuation [3]

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][4]. Core Insights - The company plans to invest $4 million in building an automated resin lens production line in Japan, aiming to enhance its global strategic layout and customization capabilities. The new facility is expected to increase production capacity by 20% compared to existing operations, targeting the North American market [2]. - The establishment of the Japanese factory is seen as a strategic move to mitigate potential tariff risks, improve service to Asia-Pacific customers, and replicate overseas factory construction experience in Thailand to reduce production costs [8]. - The company is positioned as a leader in lens manufacturing, with a dual strategy of self-branded products and ODM partnerships, particularly in the smart glasses sector, which is anticipated to drive future growth [8]. Financial Summary - Projected total revenue for 2024 is 2,061 million, with a year-on-year growth rate of 16.1%. By 2027, revenue is expected to reach 3,538 million, maintaining a growth rate of 19.2% [4][9]. - The net profit attributable to shareholders is forecasted to be 428 million in 2024, growing to 839 million by 2027, with a compound annual growth rate of approximately 24.6% [4][9]. - Earnings per share (EPS) are projected to increase from 1.00 in 2024 to 1.75 in 2027, reflecting the company's improving profitability [4][9]. Valuation Metrics - The target price for the company's stock is set at 40.50 HKD, with the current price at 24.50 HKD, indicating significant upside potential [4]. - The price-to-earnings (P/E) ratio is expected to decrease from 22.5 in 2024 to 12.9 by 2027, suggesting that the stock may become more attractive as earnings grow [4]. - The price-to-book (P/B) ratio is projected to decline from 6.1 in 2024 to 2.4 in 2027, further indicating potential value appreciation [4].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][4]. Core Insights - The company plans to invest $4 million in building an automated resin lens production line in Japan, aiming to enhance its global strategic layout and customization capabilities. The new facility is expected to increase production capacity by 20% compared to existing facilities, targeting the North American market [2]. - The report highlights three key dimensions of the new factory's value: 1. Mitigating potential tariff risks by allowing direct shipments to the U.S. market, where revenue from this region is projected to be 13% in 2024. 2. Leveraging geographical advantages to better serve Asia-Pacific customers, with significant revenue growth in the Asian market excluding mainland China. 3. Replicating overseas factory construction experience to reduce overall production costs in future projects, such as the one in Thailand [8]. - The company is positioned as a leader in lens manufacturing, actively developing a second growth curve in smart glasses, with collaborations with major consumer electronics firms. The report anticipates continued improvement in profitability driven by structural upgrades [8][4]. Financial Summary - Projected total revenue for 2024 is 2,061 million, with a year-on-year growth rate of 16.1%. By 2027, revenue is expected to reach 3,538 million, maintaining a growth rate of 19.2% [4]. - The net profit attributable to shareholders is forecasted to grow from 428 million in 2024 to 839 million in 2027, with a compound annual growth rate of approximately 24.6% [4]. - Earnings per share (EPS) are projected to increase from 1.00 in 2024 to 1.75 in 2027, reflecting a strong upward trend in profitability [4].

Group 1 - The company plans to invest approximately $4 million through its wholly-owned subsidiary Asahi Lite Optical Co., Ltd. in Japan to establish an automated resin lens production line focused on high-end customized lenses, expected to be completed by July 31, 2025 [1] - This investment aims to enhance the company's supply chain resilience, particularly in light of the U.S.-China trade tensions, by localizing production in Japan to mitigate tariff cost increases and ensure stable supply to the U.S. market [1] - The new production line is projected to increase annual capacity by 20% compared to existing customized lens production, with potential future expansion and technology upgrades depending on market demand [1] Group 2 - This investment marks a significant milestone in the company's global manufacturing strategy, reinforcing its leadership position in the high-end optical resin lens market and creating long-term value for shareholders [2] - The new production facility in Japan is expected to synergize with existing production bases in Jiangsu and Shanghai, reducing overall production costs and enhancing the company's ability to respond to geopolitical uncertainties and currency fluctuations [1]