Group 1: Robotics Business Expansion - The company is poised for significant growth in its robotics business, having entered the supply chains of leading domestic and international clients in the embodied intelligence sector [1] - The company has secured a major order for the assembly of 10,000 quadruped robotic dogs from a key client, becoming a primary supplier of essential components [1] - The company anticipates shipping 3,000 humanoid robots and over 10,000 quadruped robotic dogs by 2025, with expectations for further doubling of shipments in 2026 [1] Group 2: Consumer Electronics and AI Hardware - The company is expected to benefit from strong demand for the iPhone 17 series, with projected double-digit revenue growth in the upcoming quarter [2] - The company will serve as a key supplier for multiple components in foldable devices, including ultra-thin flexible glass covers and liquid metal hinges, with significant value increases compared to traditional models [2][3] - The company has established vertical barriers from materials to components to complete machines, enhancing cost control and responsiveness in the AI hardware sector [3] Group 3: Financial Projections and Investment Outlook - The company forecasts net profits of 5 billion, 6.9 billion, and 8.9 billion yuan for the years 2025 to 2027, with slight adjustments made to previous profit estimates [3] - Based on comparable companies' 31x PE ratio for 2026, the target price is set at 40.61 yuan, maintaining a buy rating [3]

Core Viewpoint - The report from Dongfang Securities highlights that Lens Technology's robotics business is set to expand significantly, positioning itself to serve leading domestic and international clients in the field of embodied intelligence [1] Group 1: Robotics Business Expansion - Lens Technology has entered the supply chain of top robotics companies in North America and domestically, achieving bulk deliveries of its Yuanlingxi robots while also successfully delivering components such as joint modules, dexterous hands, and structural parts [1] - Recently, the company secured an order for the assembly of 10,000 quadruped robotic dogs from Yujian Robotics, becoming a key supplier of essential components including joint motors and structural parts, thus establishing a closed loop of "R&D - Manufacturing - Supply" [1] Group 2: Future Projections - The company anticipates shipping 3,000 humanoid robots and over 10,000 quadruped robotic dogs by 2025, with expectations for the shipment scale to double by 2026, positioning itself as one of the largest manufacturers of embodied intelligence hardware globally [1] Group 3: Consumer Electronics and AI Hardware - The new product logic in consumer electronics is benefiting from a simultaneous increase in volume and price from major North American clients; the hardware transformation at the AI edge is allowing the platform leader to expand horizontally and vertically, establishing competitive advantages [1] - The technological innovation and manufacturing strength of the company as a platform leader will facilitate growth opportunities across various sectors including consumer electronics, automotive electronics, and embodied intelligence [1] Group 4: Valuation and Rating - Based on comparable companies' 2026 price-to-earnings ratio of 31 times, the target price is set at 40.61 yuan, maintaining a "Buy" rating [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 40.61 CNY based on a projected PE of 31 times for 2026 [3][6]. Core Insights - The company's robot business is set to ramp up, positioning itself as a leading platform in the domestic and international markets, with significant orders and expected deliveries of humanoid and quadruped robots [11]. - The company is expected to benefit from strong demand for consumer electronics, particularly from major North American clients, with anticipated double-digit growth in iPhone revenue [11]. - The company is leveraging its technological capabilities across various sectors, including consumer electronics and automotive electronics, establishing a competitive edge through vertical integration and horizontal expansion [11]. Financial Forecasts - The projected net profits for the company from 2025 to 2027 are 5 billion, 6.9 billion, and 8.9 billion CNY respectively, with slight adjustments made to previous forecasts [3][12]. - Revenue is expected to grow from 54.49 billion CNY in 2023 to 143.2 billion CNY in 2027, reflecting a compound annual growth rate of approximately 21.5% [5][13]. - The company's gross margin is projected to remain stable around 15% over the forecast period, with net profit margins gradually increasing from 5.5% in 2023 to 6.2% in 2027 [5][13].