: Maintains a "strong buy" rating on CONANT OPTICAL (02276) with a target price of HKD 54.5.

Huachuang Securities released a research report stating that it maintains a "strong buy" rating on CONANT OPTICAL (02276), with a 26-year valuation of 35X based on the relative valuation method, and maintains a target price of HK$54.5. Considering the accelerated development of the smart glasses industry chain and the steady improvement of the company's product structure, the company maintains its profit forecast, with the company's net profit attributable to the parent company for 25-27 years expected to be 560 million / 700 million / 870 million yuan respectively, corresponding to PE ratios of 33/26/21X. CONANT OPTICAL is deeply involved in the glasses manufacturing industry, with both domestic and foreign sales moving forward, and structural upgrades are expected to drive continuous improvement in profitability. The company has already cooperated with many top 3C giants to develop smart glasses, and its growth prospects are promising. The first self-developed AI glasses - Quark AI glasses began pre-sale on Tmall in the early hours of October 24, 2025. Just 10 hours later, it surged to the top spot in the sales of smart glasses during the Double 11 shopping festival. During the Double 11 promotion, the 88VIP platform subsidy + 10% off coupons resulted in a final transaction price of 3329 yuan. According to the official work account of CONANT OPTICAL, the company is the exclusive lens supplier for Quark AI glasses, marking a further expansion in the domestic market for customers. From a technical perspective, Quark AI glasses differ from most domestic products in that they use an integrated and lightwave-guided lens design instead of clip-on or magnetic lens designs, resulting in higher precision, thinner, more comfortable glasses. In addition, Quark AI glasses innovatively use a dual-battery design with hot-swappable battery, allowing users to replace the main battery with a backup battery, with a battery life of up to 24 hours, achieving true all-day usability.