Lens(SZ:300433)2024-08-28 03:09Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 18.6, indicating a potential upside of 9% from the current price of RMB 17.0 [2][4]. Core Insights - The company has shown stable growth in Q2, with revenue reaching RMB 1.34 billion, a year-on-year increase of 29%. The net profit for the same period was RMB 552 million, up 13% year-on-year [2][9]. - The growth drivers for the company include the momentum from Apple's iPhone, expansion in the assembly business for Android smartphones, new business increments from AI PCs, and automotive electronics [2][4]. - The company is expected to achieve a net profit growth of 28% in 2024 and 16% in 2025, supported by a relatively restrained capital expenditure [2][4]. Financial Performance Summary - Q2 2024 revenue: RMB 1.34 billion, up 29% YoY, down 14% QoQ [9]. - Q2 2024 gross margin: 16.4%, down 0.4 percentage points YoY, up 3.9 percentage points QoQ [9]. - Q2 2024 operating profit: RMB 696 million, up 59% YoY, up 29% QoQ [9]. - Q2 2024 net profit: RMB 552 million, up 13% YoY, up 79% QoQ [9]. - The company expects revenue growth rates of 3% in 2024, 17% in 2025, and 24% in 2026 [4][8]. Business Outlook - The company is focusing on the stable growth of metal glass structural components and aims to capture market opportunities with the launch of AI smartphones in the second half of the year [2][4]. - In the PC segment, the company plans to provide components and systems for AI PCs, while in the automotive sector, it aims to enhance collaboration with major clients to increase the value per vehicle for new products next year [2][4]. - Overall, the second half of the year is expected to be a peak season for the market, with multiple business lines contributing to operational and growth momentum [2][4].