Citigroup has issued a research report announcing a reduction in the target price for LENS (06613) from HK$32 to HK$27, while maintaining a "Buy" rating. For the A-share listing (300433.SZ), the target price has been lowered from 38 yuan to 32 yuan, and the rating has been downgraded from "Buy" to "Neutral." These adjustments primarily reflect downward revisions of 26% and 14% to the net profit forecasts for 2026 and 2027, respectively. The bank anticipates relatively weak performance in the first half of this year, affected by rising memory prices for Android phones, a seasonal slowdown for iPhones, and currency exchange factors. However, several drivers are expected to bolster performance in the second half of the year. These include: 1) the potential launch of a foldable iPhone; 2) the commencement of automotive glass production for a new SUV model at the Beijing plant; and 3) contributions from the server business of acquisition target Yuanshi Technology. Citigroup forecasts that the net profit distribution for 2026 will be split 25% in the first half and 75% in the second half. Looking further ahead, the bank expects growth to accelerate in 2027, benefiting from the full-year contribution of the foldable phone and automotive glass businesses, as well as the anticipated use of titanium casings and 3D glass designs for both front and back covers in a special 20th-anniversary edition flagship phone model.
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