Core Viewpoint - The report from Shenwan Hongyuan maintains a "buy" rating for Kangnait Optical (02276), projecting net profit growth of 28.5%, 24.0%, and 23.1% for 2025-2027, with figures of 5.50, 6.82, and 8.40 billion yuan respectively. The company is a leading lens manufacturer with a solid product SKU matrix and strong upstream and downstream partnerships, showcasing significant supply chain advantages [1][2]. Group 1: Company Overview - Kangnait Optical is positioned as a leading enterprise in lens manufacturing, with a comprehensive product SKU matrix and stable upstream and downstream collaborations [1]. - The company has been actively expanding its domestic market presence and developing its own brand, creating new growth momentum [1]. - The increasing proportion of differentiated products is enhancing the company's profitability [1]. Group 2: Market Trends - The smart glasses market is experiencing robust growth, with Kangnait Optical strategically positioning itself to leverage first-mover advantages [1]. - The demand for smart glasses is expected to drive both volume and price increases in the lens industry, as consumers are willing to pay higher prices for premium lenses [2]. - The global demand for lenses is steadily increasing, particularly in China, where there is significant growth potential [2]. Group 3: Product Demand and Supply Dynamics - On the demand side, there is a shift towards high refractive index and functional upgrades in product structure, indicating a healthy global demand growth [2]. - International brands hold a first-mover advantage, but domestic companies like Kangnait Optical are gradually achieving import substitution [2]. - The combination of AR displays and optical lenses creates high barriers for pre-installed prescription lenses, leading to higher price points and a more optimized competitive landscape for quality suppliers [2].