Group 1 - Citi initiates coverage of Lens Technology (06613) H-shares with a "Buy" rating and a target price of HKD 26, based on a 19.3x P/E ratio for 2026 [1] - The target price for Lens Technology (300433.SZ) A-shares is raised from RMB 25 to RMB 32, based on a 25.7x P/E ratio, reflecting improved visibility on foldable smartphone upgrades [1] - Citi prefers H-shares over A-shares in the short term from a valuation perspective [1] Group 2 - Lens Technology is expected to be a key beneficiary of Apple's potential foldable iPhone launch in 2026, with an estimated increase of over USD 50 in glass cover value per phone due to the use of ultra-thin glass (UTG) and other materials [2] - The anticipated foldable iPhone is projected to contribute 5% and 12% to Lens Technology's revenue in 2026 and 2027, respectively [2] - The company is expected to benefit from the application of ultra-hard coating technology for front cover glass and increased material value for lightweight back covers, along with a growing share of new iPhone metal frame orders in the second half of 2025 [2] Group 3 - Non-Apple business is expected to support market sentiment and long-term growth, driven by Xiaomi's high-end smartphone strategy and new opportunities in laptop and smart retail payment terminal sectors [2] - The assembly business is anticipated to continue growing, while emerging fields like AI smart glasses and humanoid robots are viewed positively for long-term potential [2]