Citi has issued a research report lowering its target price for LENS (06613) H-shares from HK$27 to HK$25, while maintaining a "Buy" rating. For the A-shares of Lens Technology Co.,Ltd. (300433), the target price was reduced from 32 yuan to 30 yuan, with a "Neutral" rating. Despite disappointing first-half 2026 results, the bank believes LENS could benefit from restocking demand for iOS products from late Q2 to late Q3, and prefers H-shares due to a more favorable risk-reward profile. Citi noted that the company's quarterly performance fell short of expectations, with management attributing the weakness to reduced customer procurement amid rising memory prices and foreign exchange losses. Management expects the FX impact to diminish in the coming quarters, anticipates iOS foldable models to contribute revenue starting in May, and sees potential for Android demand recovery in the second half of 2026. Following the Q1 results, Citi cut its 2026 net profit forecast for LENS by 13% to 4.36 billion yuan, while keeping its 2027 and 2028 earnings estimates largely unchanged.
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