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AI Glasses Market Growth: Citi predicts AI glasses shipments will reach approximately 112 million units by 2030, with a compound annual growth rate (CAGR) of 105% starting in 2024, leading to a market size of USD 40 billion.

Importance of Optical Components: The report emphasizes that optical components are vital for AI and AR glasses, comprising 40-70% of the total bill of materials.

Investment Recommendations: Citi favors companies with significant exposure to the optical supply chain, including Essilor Luxottica, GOERTEK, SUNNY OPTICAL, OMNIVISION, and CONANT OPTICAL.

Coverage Initiation: Citi has initiated coverage on CONANT OPTICAL, giving both SUNNY OPTICAL and CONANT OPTICAL a Buy rating, with target prices set at HKD 103 and HKD 65, respectively.

Market Performance: The HSI closed down 10 points at 25,530, with the HSCEI and HSTECH also experiencing declines, while total market turnover reached HKD182.477 billion.

Stock Movements: BABA-W fell 1.7% amid reports of increased resale prices for its AI glasses, while KUAISHOU-W and NTES-S also saw minor declines despite new initiatives and game pre-registrations.

Tech Sector Trends: Major tech stocks like TENCENT and BILIBILI-W experienced slight decreases, while BIDU-SW and MEITUAN-W posted modest gains.

Chip and Other Stocks: Chip stocks SMIC and HUA HONG SEMI declined, with ZTE suffering a significant drop of 13.1%, reflecting broader challenges in the sector.