Investment Rating - The report gives an "Accumulate" rating for the company with a target price of 30.9 HKD based on a PE of 27X for 2025 [4]. Core Insights - The company has demonstrated strong growth with a revenue CAGR of 12.80% and a net profit CAGR of 26.98% from 2018 to 2023, benefiting from product structure optimization and customer expansion [1][10]. - The company is positioned as a leading manufacturer of lenses in China, ranking fifth globally in resin lens sales, with a significant increase in domestic revenue share [3][11]. - The report highlights the company's strategic moves in AI hardware and the establishment of an XR R&D service center, which are expected to enhance its market presence [2][38]. Summary by Sections Investment Logic - The company has a clear direction in high refractive index standardized lenses, with revenue growth of 15.4% and 31.1% for 1.67 and 1.74 refractive index lenses respectively in the first half of 2024 [1][17]. - The gross margin for customized lenses is approximately 20 percentage points higher than that of standardized lenses, indicating a strong profitability advantage [1][21]. - Automation efforts have improved cost control and productivity, with revenue per employee increasing from 558,000 RMB in 2021 to 718,000 RMB in 2023 [1][30]. Growth Drivers - The company is expanding into the AI hardware market, having established an XR R&D service center and acquired land in Thailand for production, which is expected to enhance its exposure to the U.S. market [2][50]. - The domestic revenue share has increased significantly, reaching 32.7% in 2023, up 18 percentage points from 2018, driven by product upgrades and consumer demand for high refractive lenses [3][11]. Profit Forecast, Valuation, and Rating - The company is projected to achieve net profits of 416 million, 505 million, and 604 million RMB for 2024, 2025, and 2026 respectively, with growth rates of 27.1%, 21.5%, and 19.7% [4][7]. - The current stock price corresponds to a PE of 24, 22, and 18 for 2024 to 2026, which is lower than the average PE of comparable companies [4][42].
康耐特光学：眼镜出海龙头，歌尔入股AI配套业务提速