Lens(SZ:300433) Changjiang Securities·2024-09-03 07:10Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for investment [6]. Core Insights - Lens Technology is a leading player in the glass cover industry, primarily serving major clients like Apple. The recent Apple WWDC conference has set the tone for AI mobile phone development, suggesting that the iPhone is well-suited for AI model implementation. This innovation is expected to bring value and market share changes to component suppliers, with Lens Technology likely to be a key beneficiary [2][6]. - The company has expanded its business through acquisitions, entering the iPhone mid-frame market and vertically integrating materials such as sapphire and ceramics. The establishment of the Xiangtan factory in 2021 has further upgraded the company's operations, making it a core supplier for Xiaomi's smartphone assembly [2][6]. Summary by Sections Company Overview - Lens Technology started with protective glass and has become a global leader in consumer electronics glass cover business. The company has expanded its vertical integration to include materials like sapphire and ceramics, and has entered the metal structural parts market through acquisitions [6][14]. Financial Performance - In 2023, the company achieved revenue of 54.49 billion yuan, a year-on-year increase of 16.69%, and a net profit of 3.02 billion yuan, up 23.42% year-on-year. In the first half of 2024, revenue reached 28.87 billion yuan, growing 43.07% year-on-year, with a net profit of 861 million yuan, up 55.38% year-on-year [18][20]. Market Trends - The smartphone market is expected to recover, with a projected increase in global smartphone shipments by 4% in 2024, reaching 1.21 billion units. The introduction of AI features in smartphones is anticipated to drive demand and innovation in the sector [37][45]. Innovation and R&D - The company has invested significantly in R&D, with expenditures reaching 1.273 billion yuan in the first half of 2024, a year-on-year increase of 11.32%. This investment supports the development of new products and technologies, including advancements in glass cover materials and assembly processes [23][29]. Client Base and Global Expansion - Lens Technology has a stable shareholding structure and has established a global presence to expand its client base. The company has multiple subsidiaries focused on different segments of the consumer electronics market, ensuring a comprehensive business framework [27][32].