Dongxing Securities Co., Ltd. initiates coverage on CONANT OPTICAL with a "Buy" rating, smart glasses open up growth space

Dongxing Securities published a research report stating that CONANT OPTICAL (02276.HK) has three major production bases in Shanghai, Jiangsu, and Japan's Miki, with the Thailand base expected to commence production in 2026. The company's products cover three main types: standard lenses, functional lenses, and customized lenses; and its business model is mature, with a sales network spanning over 90 countries. As an industry leader, the company has built a strong moat in terms of technology, channels, and customer resources.

Dongxing Securities indicated that the fundamentals of the company's traditional business are solid, with a clear growth path. With the entry of AI smart glasses into a scaling inflection point, it is expected to further open up market space. The average price-to-earnings ratios of comparable companies from 2025 to 2027 are 43.2 times, 35.6 times, and 29.8 times, respectively.

The firm expects CONANT OPTICAL's net profit attributable to the parent company to be RMB 540 million, RMB 660 million, and RMB 860 million from 2025 to 2027, corresponding to price-to-earnings ratios of 43 times, 35 times, and 27.1 times at the current market value. Considering that the company's XR business is still in its early stages, with significant technological and channel advantages, it is optimistic about its growth potential and gives an initial coverage rating of "Buy."