Shares of Lens (06613) moved lower, falling more than 7% intraday to a record low since listing. As of press time, the stock was down 7.31% at HK$13.83, with turnover of HK$103 million.
On the news front, Lens reported third-quarter revenue of RMB19.035 billion, down 8.05% year-on-year, while net profit attributable to shareholders came in at RMB843 million, down 50.42% year-on-year.
The decline in results was mainly attributed to pressure on end demand caused by rising memory prices, delayed new product launches from major customers, and foreign exchange losses. In the first nine months of this year, Lens recorded a foreign exchange loss of as much as RMB654 million, compared with a foreign exchange gain of RMB115 million in the same period last year.
It is worth noting that although the company has continued to expand into automotive, robotics, and AI server businesses in recent years, smartphones and computers still contribute the vast majority of its revenue. In the first half of this year, its phone and computer-related businesses generated revenue of RMB22.382 billion, still accounting for 77.54% of total revenue.
UOB Kay Hian recently sharply cut its earnings forecasts for Lens for 2026 to 2028 by 40%, 15.9%, and 7.9% respectively to RMB2.844 billion, RMB5.407 billion, and RMB7.876 billion, reflecting lowered assumptions for the smartphone business as well as higher operating expense ratios related to research and development and talent.
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