CONANT OPTICAL (02276) rose nearly 3%, gaining 2.26% to HK$54.4 by the time of writing, with a trading volume of HK$6.55 million.
The surge follows recent developments in the AI glasses market. Alphabet's Google announced plans to develop two categories of AI glasses to compete with Meta's products next year: one featuring a display and another focused on audio functionality. Google stated that the first co-developed AI glasses will hit the market in 2026.
Domestically, new AI glasses products are emerging rapidly. On December 3, Li Auto launched its first AI glasses, Livis, while Alibaba's Quark AI Glasses S1 debuted on November 27. Globally, Meta and Ray-Ban's collaborative Ray-Ban Meta series has shipped over 2 million units, and Amazon plans to introduce AI glasses to compete directly with Meta.
Dongxing Securities predicts that smart glasses will accelerate into a product boom phase starting Q2 2025, with more major brands expected to launch in 2026. The firm highlights that smart glasses' weight is a key factor influencing consumer decisions, positioning manufacturers specializing in ultra-thin lenses and fitting technology as critical players in the supply chain.
UBS noted that CONANT OPTICAL became the world's second-largest eyewear lens manufacturer by production volume in 2024. Beyond its traditional lens business, which is projected to achieve a 25% net profit CAGR from 2024 to 2027, the bank expects the rise of smart glasses to unlock the company's long-term growth potential. UBS also suggests that CONANT OPTICAL's current 34x forward 2026 P/E ratio leaves room for revaluation amid ongoing advancements in smart glasses.
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