Lens(300433) 浦银国际证券·2024-10-22 04:30Investment Rating - The report maintains a "Buy" rating for Lens Technology (300433.CH) with a target price of RMB 26.6, representing a potential upside of 18.1% [1][9]. Core Views - Lens Technology's Q3 performance exceeded both the report's and market expectations, particularly in gross margin. The company is expected to achieve significant profit growth in the next two years, driven by various factors including the momentum from Apple iPhone, expansion in Android smartphone assembly, new AI PC business, and growth in automotive business [1][9]. - The report emphasizes the company's commitment to R&D and business expansion while maintaining a relatively restrained capital expenditure in the short term, which is favorable for profit growth [1][9]. Summary by Sections Financial Performance - In Q3, Lens Technology reported revenue of RMB 17.4 billion, a year-on-year increase of 27% and a quarter-on-quarter increase of 30%, marking five consecutive quarters of double-digit year-on-year growth [1][7]. - The gross margin reached 21.4%, up 1.0 percentage points year-on-year and 5.0 percentage points quarter-on-quarter, surpassing market expectations [1][7]. - Operating profit grew significantly, with a year-on-year increase of 56% and a quarter-on-quarter increase of 210%, resulting in a net profit of RMB 1.51 billion, up 38% year-on-year and 173% quarter-on-quarter [1][7]. Earnings Forecast - The report projects Lens Technology's revenue to reach RMB 68.1 billion in 2024, with a year-on-year growth rate of 25% and a net profit of RMB 4.23 billion, reflecting a 40% increase [3][8]. - For 2025, revenue is expected to be RMB 79.9 billion, with a net profit of RMB 5.03 billion, indicating a 19% growth [3][8]. Valuation - The report employs a sum-of-the-parts valuation method, assigning price-to-earnings ratios of 33.0x for smartphones and computers, 30.0x for new energy vehicles, and 25.0x for smart wearables, leading to the target price of RMB 26.6 [9][10].