HK Stock Market Move | CONANT OPTICAL (02276) up by over 7% recently introduced Geely as a strategic shareholder, smart glasses entering a period of rapid development.

CONANT OPTICAL (02276) rose by more than 7%, with an increase of 6.95% at the time of writing, trading at 22.3 Hong Kong dollars with a turnover of 93.342 million Hong Kong dollars. On the news front, CONANT OPTICAL recently announced a proposed private placement of 533.25 million shares, representing approximately 11.11% of the enlarged share capital, at a price of 15.86 Hong Kong dollars per share, at a discount of approximately 19.98% to the closing price last Friday. It is expected to raise approximately 828 million Hong Kong dollars, intended for research, design, and manufacturing of lenses and visual solutions for smart glasses and XR head-mounted devices. CONANT OPTICAL believes that the private placement will broaden the shareholder base and capital base of the company, enhance the strategic relationship between the group and Goertek Inc., and bring more business development opportunities and collaboration opportunities with Goertek Inc. Guotai Junan pointed out that the company is actively developing its smart glasses business and will benefit from the accelerated development of the industry. AI smart glasses are the best hardware carrier for AI landing, and the industry is entering a period of rapid development. The successful cooperation with Goertek Inc. will be the first to benefit. Cinda noted that the proportion of high-end products of CONANT OPTICAL is increasing, and its own brand is growing rapidly, with steady expansion of production capacity in Thailand. The gross profit margin of the company's standard lenses is over 30%, with an increasing share of high refractive index products, and a gross profit margin of approximately 60% for customized lenses. With the increasing proportion of customized products, the overall gross profit margin is expected to continue to improve.