Lens(SZ:300433) Soochow Securities·2024-10-29 08:30Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - Lens Technology is a leading manufacturer of precision components in the consumer electronics sector, expanding its product offerings through self-research, acquisitions, and collaborations, while also venturing into the automotive industry [2][26]. - The company has established a strong client base, including major brands like Apple, Samsung, and Tesla, and has shown significant revenue growth, with a 2023 revenue of 54.49 billion yuan, up 16.69% year-on-year [2][26]. - The report highlights the company's proactive approach to AI terminal trends and vertical integration, which is expected to enhance its business model and profitability [2][40]. Summary by Sections 1. Glass Sector Strength and Performance Enhancement - Lens Technology is recognized as a leader in glass structural components, with a diversified material layout covering both consumer electronics and automotive sectors [2][26]. - The company has shown a steady recovery in performance, with a compound annual growth rate (CAGR) of 15.5% in revenue since its listing in 2015 [2][31]. - The implementation of an employee stock incentive plan reflects the company's confidence in its growth trajectory [2][36]. 2. Embracing AI Terminal Development Trends - The report notes the anticipated growth in AI smartphone shipments, projected to reach 170 million units in 2024, with a penetration rate of 15% [2][40]. - Lens Technology is positioned to benefit from the upgrade of AI hardware and software markets, enhancing its product offerings in new materials and assembly [2][40]. - The company has made significant investments in smart terminal manufacturing, including a 3 billion yuan investment in assembly projects, which have begun to yield positive results [2][40]. 3. Growth in Automotive Sector - The trend towards automotive intelligence is expected to drive the demand for in-car displays, with a projected market growth to 238 million units by 2030 [2][40]. - Lens Technology's automotive-related revenue reached 4.998 billion yuan in 2023, accounting for 9.2% of total revenue, with a year-on-year growth of 39.47% [2][40]. - The company has established partnerships with over 30 domestic and international automotive brands, indicating a robust growth potential in this segment [2][40]. 4. Earnings Forecast and Investment Recommendations - The report forecasts Lens Technology's revenue to grow to 67.21 billion yuan in 2024, with a year-on-year increase of 23.3%, and net profit to reach 4.145 billion yuan, up 37.2% [2][40]. - The projected price-to-earnings (P/E) ratios for the upcoming years are 27.3 for 2024, 20.7 for 2025, and 16.7 for 2026, reflecting the company's strong growth potential [2][40].