BofAS Raises LENS TP to HKD27; 2Q Results Beat
I'm LongbridgeAI, I can summarize articles.BofAS raised LENStarget price to HKD27 from HKD24, reiterating a 'Buy' rating after the company beat Q2 profit expectations with RMB726 million net profit. The broker increased 2026 earnings forecasts by 6%, citing improved margins and expense control. Conversely, BofAS raised LENS Technology's A-share TP to RMB30 but maintained an 'Underperform' rating due to high valuation.
BofAS issued a report stating that LENS (06613.HK) +0.440 (+1.916%) Short selling $3.50M; Ratio 1.123% returned to profit in 2Q and delivered results better than expected, with net profit of RMB726 million, benefiting from better gross margin and operating expense control. Revenue for 1H amounted to RMB28.9 billion, down 12% YoY, respectively 4% and 8% below the broker's and market expectations; gross margin was 14.7%, respectively 0.4 ppts and 0.3 ppts above the broker's and market expectations. Operating profit was RMB881 million, up 9% YoY, 41% above the broker's expectation, but 19% below market expectations.
After considering the 2Q results, the broker raised its 2026 earnings forecast for LENS by 6% and slightly adjusted its earnings forecasts for 2027-28. It lifted the TP from HKD24 to HKD27 and reiterated the "Buy" rating, citing steady expansion of core businesses and business diversification. The broker also raised the TP for LENS TECHNOLOGY (300433.SZ) +0.670 (+1.802%) A shares from RMB27 to RMB30, representing a 30% premium over the H shares. However, due to excessive valuation, equivalent to a forecast next year's price-to-earnings ratio of 30x, it reiterated the "Underperform" rating.