Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][5] Core Views - The company reported a year-on-year revenue growth of 14.18% in 1H25, reaching 329.60 billion yuan, and a net profit growth of 32.68%, amounting to 11.43 billion yuan. In 2Q25, revenue was 158.97 billion yuan, up 18.91% year-on-year, while net profit was 7.14 billion yuan, reflecting a year-on-year increase of 29.30% [3][4] - The company is positioned as a leading global supplier of ultra-thin flexible glass, with significant market share in the foldable screen segment. The demand for new 3D glass is rapidly increasing, leading to a substantial rise in the value of individual units [4][5] - The company has successfully expanded its product matrix in the smart automotive and cockpit sectors, achieving breakthroughs in core product lines and preparing for mass production of new models in collaboration with major automotive brands [4][5] Summary by Sections Financial Performance - In 1H25, the company's revenue was 329.60 billion yuan, with a year-on-year increase of 14.18%. The net profit for the same period was 11.43 billion yuan, up 32.68% year-on-year. For 2Q25, revenue was 158.97 billion yuan, reflecting an 18.91% year-on-year growth, while net profit reached 7.14 billion yuan, a 29.30% increase year-on-year [3][4] Business Segments - Revenue from the smartphone and computer segment was 272 billion yuan, with a 13% year-on-year growth. The smart automotive and cockpit segment generated 32 billion yuan, growing by 16% year-on-year. The smart wearable and head-mounted display segment saw revenue of 16 billion yuan, up 15% year-on-year, while other smart terminal businesses grew by 128% year-on-year, generating 3.6 billion yuan [3][4] Market Position and Strategy - The company completed the R&D and mass production preparations for several flagship smartphones in the first half of 2025, enhancing its market share and profitability. The personal computer business benefited from a recovery in market demand, with simultaneous increases in production and profitability [4][5] - The company has initiated a global capacity layout through its Hong Kong listing, with 30% of the raised funds allocated for technology reserves and capacity construction for foldable screen components and related accessories [5]

Core Insights - The company reported a revenue of 32.96 billion yuan for the first half of 2025, representing a year-on-year growth of 14.18% [1] - Net profit reached 1.194 billion yuan, with a year-on-year increase of 35.53% [1] - Basic earnings per share were 0.23 yuan, up by 35.29% year-on-year [1] Group 1: Business Performance - The smartphone and computer segments generated a revenue of 27.185 billion yuan, growing by 13.19% year-on-year [1] - The company is a global core supplier of ultra-thin flexible glass and has innovatively launched a multi-layer structure design for foldable screens, preparing for mass production [1] - The demand for new 3D glass is rapidly increasing, benefiting the company due to its high processing complexity and significant single-piece value [1] Group 2: Automotive Sector - Revenue from the smart automotive sector was 3.165 billion yuan, reflecting a year-on-year growth of 16.45% [1] - Key products such as central control modules, smart B/C pillars, and charging piles are seeing increased production, with breakthroughs in communication modules and domain controllers entering mass delivery [1][2] - The ultra-thin laminated car window glass developed by the company has been successfully integrated into the production systems of leading domestic car manufacturers [2] Group 3: New Technology Developments - In the smart wearable sector, the company achieved a revenue of 1.647 billion yuan, with a year-on-year increase of 14.74% [3] - The company made breakthroughs in optimizing the yield of waveguide lenses and high-precision automated assembly processes, enabling large-scale delivery of AR glasses to major domestic clients [3] - The company is actively building a humanoid robot industry chain and aims to create the largest and most vertically integrated hardware manufacturing platform in China [3]

Core Viewpoint - In the first half of 2025, Lens Technology (300433) achieved revenue and net profit growth, driven by innovation in consumer electronics and emerging business segments such as embodied intelligence and smart retail, which saw a rapid growth of 128% year-on-year, indicating new growth opportunities [1][2] Financial Performance - The company reported a revenue of 32.96 billion yuan, representing a year-on-year increase of 14.18% - The net profit attributable to shareholders was 1.143 billion yuan, up 32.68% year-on-year - The net profit after deducting non-recurring gains and losses increased by 41.85% year-on-year - A cash dividend of 1.00 yuan per 10 shares (including tax) is proposed, totaling 526 million yuan, with a payout ratio of 46% [1] Market Position and Product Development - Lens Technology maintained its leading position in the market for exterior and structural components, achieving a revenue of 27.185 billion yuan in the smartphone and computer segments, a year-on-year increase of 13.19% - The company is well-prepared for the upcoming peak production season in the consumer electronics industry, having completed the R&D and production preparation for several flagship smartphones [1] Emerging Business Segments - The other intelligent terminal segment, including embodied intelligence and smart retail, achieved a revenue growth of over 128% to 364 million yuan in the first half of the year - The company is making substantial progress in collaboration with leading domestic and international embodied intelligence firms, delivering core components and complete assembly for products like joint modules and exoskeleton devices [2] Innovations in New Technologies - In collaboration with a major North American client, the development and validation of foldable screen products are progressing smoothly, with capacity planning and investment in place for large-scale production - The new 3D glass market is expected to see rapid growth, with a favorable supply-demand dynamic anticipated [2] Growth in Automotive and Wearable Technology - The automotive business is entering mass production with ultra-thin laminated car windows for new models from leading domestic car manufacturers - The smart head-mounted display and wearable technology sectors achieved double-digit growth, with breakthroughs in core processes such as waveguide lens yield optimization [2]

Core Viewpoint - In the first half of 2025, the company achieved double growth in revenue and net profit, driven by innovations in consumer electronics empowered by AI, with significant growth in emerging business sectors such as embodied intelligence and smart retail, indicating new growth potential [1]. Revenue and Profit Growth - The company reported a revenue of 32.96 billion yuan, a year-on-year increase of 14.18% - The net profit attributable to shareholders was 1.143 billion yuan, up 32.68% year-on-year - The net profit after deducting non-recurring items grew by 41.85% year-on-year - A cash dividend of 1.00 yuan per 10 shares (including tax) is proposed, totaling 526 million yuan, with a payout ratio of 46% [2]. Consumer Electronics Market Dynamics - The consumer electronics industry is recovering, supported by AI technology and "old-for-new" subsidies - The company maintained its leading position in the market for glass, ceramics, sapphire, and metal components, achieving a revenue of 27.185 billion yuan in the smartphone and computer segments, a year-on-year increase of 13.19% - With the traditional peak season approaching, the company is prepared for mass production of new AI smartphones and AR glasses, enhancing market share and profitability [3]. Product Development and Innovation - The company is actively engaging in research and development of innovative products in the consumer electronics sector, including successful collaboration with major North American clients on foldable screen products - The demand for new 3D glass is rapidly increasing, with expectations for a significant market expansion [4]. Emerging Business Segments - The "other smart terminal" segment, which includes embodied intelligence and smart retail, saw a revenue increase of over 128% year-on-year, reaching 364 million yuan - The company has made substantial progress in partnerships with leading embodied intelligence firms, achieving mass delivery of core components and complete assemblies [5]. Growth in Automotive and Wearable Technology - The company experienced double-digit growth in the smart automotive and cockpit, as well as smart headsets and wearables sectors - In the automotive sector, ultra-thin laminated car windows are being integrated into the production systems of leading domestic car manufacturers - Breakthroughs in core processes for optical waveguide lenses have enabled large-scale delivery of AI glasses to major domestic clients, with plans for further collaboration with global wearable technology leaders [6].

Group 1 - Lens Technology is collaborating with partners to develop the next generation of cover glass, maintaining its role as a core supplier for a major North American client [1] - The company does not produce glass raw materials but relies on partners for supply, focusing on value-added processing to enhance the performance of cover glass products [1] - The new glass will utilize innovative formulas to improve structural performance and user experience, thereby increasing product value and market competitiveness [1] Group 2 - Apple has committed to investing $2.5 billion in Corning's facility in Kentucky for the production of cover glass for iPhones and Apple Watches as part of its "American Manufacturing Plan" [1] - This investment is expected to help Apple mitigate tariff risks and enhance its supply chain resilience, as most of its products sold in the U.S. currently come from India and Vietnam [2] - Analysts predict that with the resolution of tariff issues and increased investments in AI and new products, Apple's supply chain may enter a valuation recovery phase [2] Group 3 - Lens Technology is experiencing rapid growth in demand for new 3D glass, with expectations for a significant increase in market space and value due to the complexity of processing [3] - The company is leading in the development and mass production of foldable screen components, with successful collaboration with North American clients [3] - In the AI glasses sector, Lens Technology is addressing production bottlenecks in core modules and optical waveguide lenses, anticipating resolution of these issues as production capacity increases [3]

Group 1 - The company, Lens Technology, has established a leading market position in UTG and related structural components, with successful progress in new product development and verification, preparing for large-scale production of foldable screens based on customer demand [2] - Lens Technology has innovatively introduced a multi-layer structure design for foldable screens, effectively eliminating creases and enhancing screen flatness by stacking PET film, UTG, flexible display modules, glass support plates, and metal brackets [2] - The new 3D glass back cover features an innovative design with a flat edge and a protruding camera module area, optimizing internal layout and enhancing imaging effects, expected to become a mainstream solution for high-end flagship models [2] Group 2 - In the automotive sector, Lens Technology leverages decades of experience in electronic glass processing, offering significant advantages in lightweight, sound insulation, heat insulation, UV protection, waterproofing, and other functionalities [3] - The ultra-thin laminated glass developed by Lens Technology has been successfully integrated into new models of leading electric vehicle manufacturers, with mass production set to begin in the second half of the year [3] - The company is accelerating collaborations with multiple domestic and international leading automotive brands, which will significantly boost its automotive business [3]