Citi Begins Coverage of CONANT OPTICAL with Target Price of HKD65
Citi Coverage Initiation: Citi has started coverage on CONANT OPTICAL (02276.HK) with a Buy/High Risk rating and a target price of HKD65, noting its position as a leading global supplier of resin eyeglass lenses.
Market Insights: The report indicates that CONANT OPTICAL ranked second worldwide in shipment volume last year, according to Frost & Sullivan.
AI Glasses Market Forecast: Citi forecasts that the AI glasses market will grow significantly, with shipments and market size expected to reach 112 million units and USD40 billion by 2030, with a CAGR of 105% and 112% from 2024 to 2030.
Price Surge Anticipation: The average selling price and price per lens are expected to increase with the introduction of new-generation flagship AI glasses featuring display functions starting in the second half of 2026.
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CONANT OPTICAL Rises Approximately 6% Following Announcement of Over 11% Discounted Share Placement to Raise Around HKD 1.4 Billion for Production Line Development
Stock Performance: CONANT OPTICAL (02276.HK) opened 1.2% higher, peaked at HKD65.35, and last traded at HKD61.95, reflecting a 5.9% increase with a trading volume of 1.4369 million shares.
Placing Agreement: The company announced a placing agreement to issue 27 million shares at HKD52 each, representing a discount of 11.1% from the previous closing price, aiming to raise nearly HKD1.4 billion.
Use of Proceeds: Approximately 20% of the net proceeds from the share placement will be allocated to expanding XR-related production capacity and smart manufacturing at CONANT OPTICAL's Thailand facility.
Analyst Update: CICC has raised CONANT OPTICAL's target price by 12% to HKD65 and adjusted its earnings forecasts accordingly.
CONANT OPTICAL Unveils Over 11% Discounted Share Placement Aiming to Raise Approximately HKD1.4B for Production Line Development
Share Placement Announcement: CONANT OPTICAL has entered a placing agreement to issue 27 million shares at HKD52 each, representing a discount of 11.1% from the previous closing price of HKD58.5.
Use of Proceeds: The company expects to raise nearly HKD1.4 billion, with approximately 20% allocated for expanding XR-related production capacity and enhancing smart manufacturing at its Thailand facility.
CICC Increases Price Target for CONANT OPTICAL (02276.HK) by 12% to $65 and Revises Earnings Projections
Profit Forecast: CONANT OPTICAL projects a net profit increase of at least 30% for 2025, driven by higher sales of 1.74 index lenses, improved automation, and optimized financing structures.
Earnings Upgrade: CICC has raised its earnings forecasts for 2025 and 2026 by 3% each, estimating profits of RMB566 million and RMB701 million, respectively, due to strong sales and cost efficiencies.
New Earnings Forecast: Citi has introduced a 2027 earnings forecast of RMB916 million and adjusted its valuation to 2026, reflecting a price-to-earnings ratio of 37x for 2026 and 28x for 2027.
Target Price Increase: CICC raised its target price for CONANT OPTICAL by 12% to $65, maintaining an Outperform rating, with projected PE ratios of 40x for 2026 and 30x for 2027.
<Daily Summary> HSI Ends at 26,844, Decreasing by 78 Points; HSTI Finishes at 5,822, Down 6 Points; POP MART Falls Over 5%; CKH HOLDINGS, SHK PPT, CONANT OPTICAL, HUA HONG SEMI, and CHERVON Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 78 points (0.3%) to close at 26,844, while the Hang Seng China Enterprises Index (HSCEI) dropped 46 points (0.5%) to 9,220, with a total market turnover of $255.08 billion.
Active Heavyweights: Notable declines were seen in Xiaomi (-2.0%), Ping An (-1.3%), and Tencent (-0.7%), while Alibaba experienced a slight increase of 1.0%.
Significant Movers: Pop Mart saw a significant drop of 5.6%, while Techtronic Industries and Li Ning reported gains of 4.9% and 4.3%, respectively, with some stocks hitting new highs.
Top Gainers in HSMI & HSSI: Synagistics surged by 17.8%, followed by XXF with a 13.1% increase, and several other stocks also reported substantial gains, indicating a mixed performance across different sectors.
Midday Update: HSI Ends at 26,851, Down 71 Points; HSTI at 5,815, Down 12 Points; ALI HEALTH Falls Over 5%; SHK PPT, CKH HOLDINGS, CLP HOLDINGS, BOC HONG KONG, and CONANT OPTICAL Reach New Highs
Market Performance: The Hang Seng Index (HSI) fell by 71 points (0.3%) to 26,851, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable movements included Xiaomi and Ping An, both down approximately 1.6%, while Alibaba saw a slight increase of 1.1%.
Significant Declines: Ali Health and Pop Mart faced substantial drops of 6.3% and 4.8%, respectively, with Pop Mart experiencing high short selling activity.
Top Gainers: Techtronic Industries and Li Ning reported gains of 4.8% and 4.0%, respectively, with several companies hitting new highs in their stock prices.
Citi's Leading H-Share Selections (Table)
Stock Performance: Tencent, AIA, and Hengrui Pharma saw slight increases in their stock prices, while Zijin Mining had a notable rise of 2.188%.
Short Selling Data: Tencent and Zijin Mining experienced significant short selling, with Tencent at $1.70 billion and a ratio of 11.166%, while Zijin Mining had a short selling amount of $540.80 million and a ratio of 18.741%.
Other Stocks: Conant Optical and Lens also reported gains, with Conant Optical increasing by 5.646% and Lens by 1.486%.
Market Information: The stock quotes for Hong Kong stocks are delayed by at least 15 minutes, while US stock quotes are provided in real-time, except for OTC quotes which are also delayed.
CONANT OPTICAL Rises Approximately 6% Following Announcement of Over 11% Discounted Share Placement to Raise Around HKD 1.4 Billion for Production Line Development
Stock Performance: CONANT OPTICAL (02276.HK) opened 1.2% higher, peaked at HKD65.35, and last traded at HKD61.95, reflecting a 5.9% increase with a trading volume of 1.4369 million shares.
Placing Agreement: The company announced a placing agreement to issue 27 million shares at HKD52 each, representing a discount of 11.1% from the previous closing price, aiming to raise nearly HKD1.4 billion.
Use of Proceeds: Approximately 20% of the net proceeds from the share placement will be allocated to expanding XR-related production capacity and smart manufacturing at CONANT OPTICAL's Thailand facility.
Analyst Update: CICC has raised CONANT OPTICAL's target price by 12% to HKD65 and adjusted its earnings forecasts accordingly.
CONANT OPTICAL Unveils Over 11% Discounted Share Placement Aiming to Raise Approximately HKD1.4B for Production Line Development
Share Placement Announcement: CONANT OPTICAL has entered a placing agreement to issue 27 million shares at HKD52 each, representing a discount of 11.1% from the previous closing price of HKD58.5.
Use of Proceeds: The company expects to raise nearly HKD1.4 billion, with approximately 20% allocated for expanding XR-related production capacity and enhancing smart manufacturing at its Thailand facility.
CICC Increases Price Target for CONANT OPTICAL (02276.HK) by 12% to $65 and Revises Earnings Projections
Profit Forecast: CONANT OPTICAL projects a net profit increase of at least 30% for 2025, driven by higher sales of 1.74 index lenses, improved automation, and optimized financing structures.
Earnings Upgrade: CICC has raised its earnings forecasts for 2025 and 2026 by 3% each, estimating profits of RMB566 million and RMB701 million, respectively, due to strong sales and cost efficiencies.
New Earnings Forecast: Citi has introduced a 2027 earnings forecast of RMB916 million and adjusted its valuation to 2026, reflecting a price-to-earnings ratio of 37x for 2026 and 28x for 2027.
Target Price Increase: CICC raised its target price for CONANT OPTICAL by 12% to $65, maintaining an Outperform rating, with projected PE ratios of 40x for 2026 and 30x for 2027.
<Daily Summary> HSI Ends at 26,844, Decreasing by 78 Points; HSTI Finishes at 5,822, Down 6 Points; POP MART Falls Over 5%; CKH HOLDINGS, SHK PPT, CONANT OPTICAL, HUA HONG SEMI, and CHERVON Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 78 points (0.3%) to close at 26,844, while the Hang Seng China Enterprises Index (HSCEI) dropped 46 points (0.5%) to 9,220, with a total market turnover of $255.08 billion.
Active Heavyweights: Notable declines were seen in Xiaomi (-2.0%), Ping An (-1.3%), and Tencent (-0.7%), while Alibaba experienced a slight increase of 1.0%.
Significant Movers: Pop Mart saw a significant drop of 5.6%, while Techtronic Industries and Li Ning reported gains of 4.9% and 4.3%, respectively, with some stocks hitting new highs.
Top Gainers in HSMI & HSSI: Synagistics surged by 17.8%, followed by XXF with a 13.1% increase, and several other stocks also reported substantial gains, indicating a mixed performance across different sectors.
Midday Update: HSI Ends at 26,851, Down 71 Points; HSTI at 5,815, Down 12 Points; ALI HEALTH Falls Over 5%; SHK PPT, CKH HOLDINGS, CLP HOLDINGS, BOC HONG KONG, and CONANT OPTICAL Reach New Highs
Market Performance: The Hang Seng Index (HSI) fell by 71 points (0.3%) to 26,851, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also experienced declines.
Active Heavyweights: Notable movements included Xiaomi and Ping An, both down approximately 1.6%, while Alibaba saw a slight increase of 1.1%.
Significant Declines: Ali Health and Pop Mart faced substantial drops of 6.3% and 4.8%, respectively, with Pop Mart experiencing high short selling activity.
Top Gainers: Techtronic Industries and Li Ning reported gains of 4.8% and 4.0%, respectively, with several companies hitting new highs in their stock prices.
Citi's Leading H-Share Selections (Table)
Stock Performance: Tencent, AIA, and Hengrui Pharma saw slight increases in their stock prices, while Zijin Mining had a notable rise of 2.188%.
Short Selling Data: Tencent and Zijin Mining experienced significant short selling, with Tencent at $1.70 billion and a ratio of 11.166%, while Zijin Mining had a short selling amount of $540.80 million and a ratio of 18.741%.
Other Stocks: Conant Optical and Lens also reported gains, with Conant Optical increasing by 5.646% and Lens by 1.486%.
Market Information: The stock quotes for Hong Kong stocks are delayed by at least 15 minutes, while US stock quotes are provided in real-time, except for OTC quotes which are also delayed.
