Investment Rating - The report assigns a "Buy" rating for the company, with a target price of HKD 48-54 per share based on a projected PE ratio of 40-45X for 2025 [6]. Core Insights - The company is a leading resin lens manufacturer in China, ranking first in production volume and ninth in revenue globally, with products sold in over 80 countries [1][13]. - The company has shown robust revenue and profit growth, with a projected net profit increase of over 30% in 2024, reaching over HKD 430 million [2][25]. - The lens industry in China is expected to grow at a CAGR of 9.1% from 2023 to 2027, driven by increasing demand for corrective lenses and the expansion of the domestic market [3][43]. Summary by Sections Company Overview - The company is recognized as a global leader in the resin lens market, with a strong focus on customized services and a diverse product range [1][4]. - The company has established a solid customer base and long-term partnerships across various countries, enhancing its market presence [4][36]. Financial Performance - From 2018 to 2023, the company's revenue grew from HKD 850 million to HKD 1.76 billion, with a CAGR of 16%, while net profit increased from HKD 80 million to HKD 330 million, achieving a CAGR of 33% [2][25]. - The company anticipates a net profit of over HKD 430 million in 2024, primarily due to effective market expansion and a higher proportion of high-value products [2][25]. Industry Analysis - The Chinese lens market is projected to grow steadily, with a retail market size of approximately HKD 378 billion in 2023, reflecting a year-on-year growth of 11.2% [43]. - The demand for lenses is expected to rise due to an increasing population with vision impairments and the growing popularity of specialized lenses such as progressive and sports eyewear [55][60]. Product and Production Capabilities - The company has a comprehensive product system with a focus on high-refractive and customized lenses, being one of the few manufacturers capable of producing 1.74 refractive index lenses [4][31]. - The company operates automated production facilities with a daily capacity of 20,000 pieces, ensuring efficient and precise delivery of customized lenses [4][39]. Strategic Initiatives - The company is entering the XR (Extended Reality) market, collaborating with leading consumer electronics firms to develop smart glasses, which are expected to drive significant growth [5][20]. - The partnership with GoerTek enhances the company's position in the XR industry, leveraging synergies for product development [5][20].
康耐特光学：全球镜片龙头，XR赋能新一轮成长-20250224