CLSA Reiterates "Outperform" Rating on LENS (06613), Expects Acquisition to Enter NVIDIA (NVDA.US) Supply Chain

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According to reports, CLSA has issued a research note reiterating an "Outperform" rating on LENS (06613) with an unchanged target price of HK$38. The firm highlighted LENS's announcement of its plan to acquire over 95% equity in Yuanshi Technology, a company engaged in the production and sales of server racks, structural components, and liquid cooling modules for servers. Yuanshi Technology is a supplier to NVIDIA (NVDA.US).

CLSA expects the deal to be completed next year, which would help LENS enter NVIDIA's AI server supply chain and accelerate the rapid growth of its AI server business. The brokerage estimates that the acquisition could add RMB 800 million to RMB 1 billion in revenue and RMB 100 million to RMB 200 million in net profit for LENS in the coming year.

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