CONANT OPTICAL (02276) fell more than 4% during early trading. At the time of writing, the stock was down 4.02% to HK$49, with a turnover of HK$49.56 million. The decline follows the company's recent announcement that it has signed a legally binding memorandum of cooperation with a globally leading technology firm, a leader in the smart glasses industry, detailing a multi-year mass production agreement for a key smart glasses project. The company stated that, combined with several major domestic customers' AR smart glasses projects already entering mass production, its technical capabilities in the smart glasses field, particularly in AR smart glasses optical solutions, have gained recognition from technology and consumer electronics companies both in China and internationally. Notably, CONANT OPTICAL announced in late January plans to place 27 million new shares, raising net proceeds of approximately HK$1.4 billion. Following the placement, the total number of issued shares is expected to increase from 480 million to 507 million. Macquarie issued a research report stating it has lowered its earnings per share forecasts for CONANT OPTICAL for 2026 and 2027 by 20% and 8%, respectively. This revision reflects a downward adjustment in revenue projections for the AI glasses business and the share capital adjustment. However, the brokerage maintained its "Outperform" rating on the stock, while reducing its target price from HK$95.6 to HK$88.
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