Core Viewpoint - The company maintains a "buy" rating for Lens Technology, projecting optimistic growth in the fundamentals for the upcoming year, driven by new product cycles and strategic expansions in various sectors [1][2]. Group 1: Financial Performance - In Q3, Lens Technology recorded a historical high revenue of RMB 20.7 billion, representing a year-on-year increase of 19% and a quarter-on-quarter increase of 30% [2]. - The gross margin was 19.1%, showing a year-on-year decline of 2.3 percentage points but a quarter-on-quarter increase of 3.3 percentage points, primarily due to changes in product mix [2]. - Operating profit and net profit were RMB 2.27 billion and RMB 1.70 billion, respectively, both showing year-on-year and quarter-on-quarter growth [2]. Group 2: Business Outlook - The company is expected to benefit from the innovation cycle of major clients, including the rollout of products such as 3D glass, UTG screens, PET films, glass brackets, and hinges in various smartphone models [1]. - Lens Technology's advancements in the robotics sector, including head modules, dexterous hands, body structure components, and complete machine assembly, are anticipated to continue significant growth [1]. - The automotive glass segment is projected to contribute substantial incremental growth next year [1]. - The company's layout in AI servers is also expected to enhance fundamental growth [1]. Group 3: Valuation - The target price for Lens Technology's A-shares is adjusted to RMB 34.7, indicating a potential upside of 16.9%, while the target price for its Hong Kong shares is set at HKD 32.2, with a potential upside of 17.8% [1][2]. - The valuation employs a segmented approach, assigning price-to-earnings ratios of 38.0x for smartphones and computers, 39.0x for new energy vehicles and smart cockpits, and 32.0x for smart headsets and wearables [2].