2025-10-30 02:01Summary of Lens Technology 3Q25 Earnings Call Company Overview - Company: Lens Technology (300433.SZ/6613.HK) - Industry: Technology, specifically in manufacturing covers for smartphones, tablets, and wearables - Key Clients: Apple, Xiaomi, Huawei Key Financial Highlights - Revenue: Rmb20.7 billion, up 30% QoQ and 19% YoY [2][12] - Gross Profit: Rmb3.9 billion, up 62% QoQ and 8% YoY [2][12] - Operating Profit: Rmb2.2 billion, up 211% QoQ and 8% YoY [2][12] - Net Profit: Rmb1.7 billion, up 138% QoQ and 13% YoY, but missed estimates by 7% and 11% due to non-operating items [2][12] Operational Insights - Smartphone Orders: Approximately 30 million units of new model orders for 2H25 were added during September-October, with some orders expected to push into 4Q25 [1][3] - Automotive Capacity: The company will have glass capacity to support 1.6 million vehicles in 2026, up from 350,000 in 2025. A new factory with four times the current capacity is planned to be operational by 2027 [1][3] - Humanoid Robots: Plans to supply 3,000 humanoid robots and 20,000 robot dogs in 2025, with expected revenue of Rmb300-500 million. Breakeven is anticipated at an annual production of over 100,000 humanoid robots [3] - Server Components: Metal structural parts for server chassis were shipped to domestic clients in 3Q25, with plans to expand into liquid cooling and SSD module assembly in 2026 [3] Strategic Partnerships - XR Collaboration: Deep cooperation with a US XR customer, with the first glasses assembly line set for customer acceptance in November [1][3] Future Outlook - Earnings Growth: The target price is set at Rmb38.0/HK$32.0, based on a 30.0x/23.0x 2026E P/E ratio, supported by a projected 31% 3-year earnings CAGR [11][26] - Investment Rating: The company is rated as a "Buy" due to growth opportunities in automotive, foldable phone upgrades, and new NEV/robotic markets [25][29] Risks to Consider - Potential delays in foldable iOS smartphone launches - Lower-than-expected growth in global smartphone, tablet, automotive, XR, and AI smart glasses markets - Possible reversal of electronic device tariff exemptions - Lower-than-expected cover glass average selling prices (ASP) - FX volatility due to macroeconomic uncertainties [27][32]