Core Viewpoint - Haitong International's report indicates that Lens Technology, as a leading platform in the smart terminal industry chain, is set to benefit significantly from the innovation cycle of major clients, with high visibility in business and expected accelerated growth in the next three years [1] Group 1: Business Growth Potential - The smartphone and computer sectors are expected to benefit from the innovation cycle of major clients, leading to high business visibility and accelerated growth [1] - Strategic innovation in the smart automotive and cockpit sectors, particularly with the upcoming release of ultra-thin automotive laminated glass, is anticipated to drive growth [1] - The company is expected to see accelerated growth in business over the next two years, with profit growth outpacing revenue growth [1] Group 2: Financial Projections - Revenue projections for Lens Technology are estimated at 87.407 billion, 110.547 billion, and 133.141 billion yuan for the years 2025, 2026, and 2027 respectively [1] - The projected net profit attributable to shareholders is expected to be 4.785 billion, 6.801 billion, and 8.362 billion yuan for the same years [1] Group 3: Market Position and Valuation - The company is positioned to benefit from the core AR market in smart headsets and wearables, awaiting an industry explosion [1] - A price-to-earnings ratio of 26 times is assigned for 2026, leading to a target price of 36.5 HKD, indicating a potential upside of 46.7% [1] - The report initiates coverage with an "outperform the market" rating for Lens Technology [1]

Core Viewpoint - Lens Technology is a significant player in the consumer electronics sector, focusing on the research, production, and sales of window protective glass, with a market capitalization of 127.3 billion yuan as of August 12, 2025 [1] Group 1: Company Overview - As of August 12, 2025, Lens Technology's stock price is 24.09 yuan, reflecting a decrease of 0.70% from the previous trading day [1] - The company reported a trading volume of 1.487 billion yuan on the same day, with a turnover rate of 1.24% [1] - Lens Technology's main products are widely used in smartphones, tablets, and laptops, and the company is expanding into automotive electronics and smart home sectors [1] Group 2: Product Development and Market Position - The company is collaborating with clients to develop the next generation of cover glass, utilizing innovative formulas to enhance product performance [1] - In the foldable screen market, Lens Technology has leveraged its UTG technology to introduce a multi-layer structure design, achieving a leading market position [1] - In the automotive sector, ultra-thin laminated glass has been successfully integrated into the new energy vehicle supply chain, with mass production expected in the second half of the year [1] Group 3: Financial Flow - On August 12, 2025, the net outflow of main funds was 93.73 million yuan, with a cumulative net outflow of 50.77 million yuan over the past five trading days [1]

Group 1: Market Position and Product Development - Lens Technology is a global leader in the post-processing of fragile materials, focusing on enhancing the value of cover glass through advanced processing technology [1] - The company is collaborating with partners to develop the next generation of cover glass, ensuring efficient supply through distribution centers in Hong Kong and bonded warehouses in Hunan [1] - Lens Technology has established a leading market position in ultra-thin flexible glass (UTG) and is progressing well in new product development and verification for foldable screens [2] Group 2: Innovations in Glass Technology - The new glass substrate will utilize innovative formulas to enhance the performance and user experience of cover glass, thereby increasing product value and market competitiveness [2] - The company has introduced a multi-layer structure design for foldable screens, effectively eliminating creases and improving screen flatness [2] - The demand for new 3D glass has rapidly increased this year, with expectations for a significant rise in market space and value due to the complexity of 3D structure processing [2] Group 3: Automotive Business Expansion - Lens Technology leverages its decades of experience in electronic glass processing to develop lightweight, multi-functional automotive glass, which includes features like sound insulation and UV protection [3] - The ultra-thin automotive laminated glass has been successfully integrated into new models from leading electric vehicle manufacturers, with mass production set to begin in the second half of the year [3] Group 4: Financial Strategy and Capital Expenditure - The company has completed its capital expenditure for new products this year and plans to upgrade existing production lines to reduce costs and improve efficiency [3] - With a strong cash flow and a historically low debt-to-asset ratio, the company is well-positioned to support international expansion and capitalize on market opportunities [3]

Core Viewpoint - The company, Lens Technology, has successfully introduced ultra-thin automotive laminated glass into new models for leading electric vehicle customers, with multiple domestic and international top brands quickly following suit, which is expected to create greater market opportunities for the company [1] Company Summary - Lens Technology has engaged in institutional research and reported the successful integration of ultra-thin automotive laminated glass into new models for major electric vehicle clients [1] - The company anticipates increased market space due to the rapid adoption of its products by several leading domestic and international brands [1]

Group 1: Foldable Screen Technology - The global shipment of foldable screen smartphones is expected to grow rapidly from 23.8 million units in 2024, with a compound annual growth rate (CAGR) exceeding 24% [1][2] - The company is a leading global supplier of ultra-thin flexible glass (UTG), benefiting from strong technical accumulation and patent layout [2] - Approximately 30% of the funds raised in the Hong Kong IPO (or HKD 1.377 billion) will be allocated for the technology reserve and capacity building of next-generation foldable screen components [2] Group 2: Automotive Business - The company has established partnerships with over 30 leading domestic and international automotive enterprises, achieving a market share of 20.9% in the global smart automotive interaction system solutions industry [3] - The company is expanding its automotive business, achieving breakthroughs in wireless charging modules and domain controller modules [3] - The lightweight automotive laminated glass developed by the company has been successfully introduced to new models of leading electric vehicle brands [3] Group 3: Humanoid Robotics - The company established a smart robotics division in 2016 and is collaborating with leading humanoid robotics companies to mass-produce humanoid robots [4] - The company aims to create a vertically integrated platform for intelligent hardware manufacturing, focusing on reducing costs and enhancing supply chain efficiency [4] - Since 2024, the company has delivered hundreds of humanoid robots to partners and is showcasing various robotic products at industry events [4] Group 4: AI Glasses - The company has been a core supplier of structural components for the first-generation smart headsets and collaborates with several leading North American AI glasses clients [5] - The company is the assembly partner for Rokid's entire series of AI glasses, enhancing product performance through proprietary technologies [5] - Future production capacity for optical modules and waveguide lenses is expected to alleviate industry bottlenecks [5] Group 5: Global Operations and Tariff Impact - The company has established production bases in Vietnam, Thailand, and Mexico since 2017 to enhance global operational capabilities [5] - The company has developed a global layout to quickly respond to market changes and customer needs, mitigating the impact of tariff policies [5] - The company maintains a high market share in the smartphone glass sector, with expectations for significant growth in 3D glass demand in the coming years [5]