BofAS Begins Coverage on LENS (06613.HK) with a Buy Rating and Price Target of $26

The analyst rating for LENS (06613.HK) was reiterated as Outperform due to the company's plans to acquire over 95% of Yuans Technology, which is a supplier to Nvidia. This acquisition is expected to enable LENS to break into Nvidia's AI server supply chain, thereby driving rapid growth in its AI server business. The anticipated completion of the deal next year further supports the positive outlook. The target price remains unchanged at HKD38.

The analyst rating for LENS (06613.HK) is based on several key factors highlighted in the research report by Haitong International. The reasons for the Outperform rating include: 1. Leading Position: LENS is recognized as a leading platform in the entire industrial chain of smart terminals, which positions it well to benefit from industry trends. 2. Innovation Cycle: The company is expected to fully benefit from the innovation cycles of major clients, particularly in the smartphone and computer sectors, over the next three years. 3. High Business Visibility: There is a strong visibility in the business outlook, suggesting confidence in future performance. 4. Accelerated Growth: Haitong International predicts that LENS will experience accelerated growth in 2026 and 2027, with profit growth expected to outpace revenue growth. 5. Revenue and Profit Projections: The projected revenue and net profit figures for 2025-2027 indicate a positive financial trajectory, with significant increases in both revenue and net profit. 6. Target Price and Upside Potential: The assigned target price of HKD36.5 reflects a 46.7% upside potential, further supporting the positive outlook. Overall, these factors contribute to the favorable analyst rating and the decision to initiate coverage with an Outperform rating.

The analyst rating for LENS (06613.HK) was maintained as "Outperform" due to a 19% year-over-year revenue growth driven by increased demand for iPhones, sustained growth in automotive products, and XR wearable devices. Additionally, CCBI slightly raised its EPS forecast for LENS for 2025 and 2026 by 4%, which contributed to an increase in the target price for both H-shares and A-shares. Despite a slight miss in net profit growth, the overall positive outlook on revenue and EPS adjustments supported the favorable rating.