Lante Optics(SH:688127) Great Wall Securities·2025-08-25 12:12Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [4][19]. Core Insights - The company has demonstrated significant revenue growth in H1 2025, with a year-on-year increase of 52.54%, driven by the demand for micro-prisms and automotive optics [1][2]. - The overall gross margin for H1 2025 was 35.98%, reflecting a year-on-year improvement of 4.38 percentage points, while the net profit margin increased by 5.09 percentage points to 18.17% [2]. - The company is benefiting from a diversified product matrix, with key products such as optical prisms, glass wafers, and glass aspheric lenses seeing revenue growth due to expanding applications in consumer electronics, automotive intelligent driving, and optical communications [2][3]. Financial Performance Summary - Revenue projections show a strong upward trend, with expected revenues of 754 million yuan in 2023, increasing to 2,831 million yuan by 2027, representing a compound annual growth rate (CAGR) of 38.4% [1]. - The net profit is projected to grow from 180 million yuan in 2023 to 567 million yuan in 2027, with a CAGR of 30.6% [1]. - The company's return on equity (ROE) is expected to improve from 11.0% in 2023 to 19.3% in 2027, indicating enhanced profitability [1]. Business Expansion and Market Opportunities - The company is actively exploring demand in multiple downstream sectors, including consumer electronics, automotive intelligent driving, and optical communications, which are expected to drive growth [3]. - The demand for optical components is anticipated to continue expanding due to rapid developments in consumer electronics, automotive, and semiconductor sectors, as well as emerging fields like artificial intelligence and high-speed optical communication [3][8]. - The report highlights the company's strategic partnerships with major clients, which are expected to support stable growth in the glass wafer business as technology applications evolve [3].