HK Stock Market Move | CONANT OPTICAL (02276) fell more than 4%. The company announced a rights issue to raise HKD 1.4 billion in net proceeds, which institutions speculate may be used as reserve for future expenses.

Conant Optical (02276) fell more than 4%, dropping to 4.24% as of press time, at HK$59.9, with a turnover of HK$567.521 million. Conant Optical recently announced that it plans to issue 27 million shares at a price of HK$52 per share, representing a discount of approximately 11.1% to the company's closing price of HK$58.5 per share on January 26, with net proceeds of approximately HK$1.4 billion. After the issuance, the total share capital is expected to increase from 480 million shares to 507 million shares. Huachuang Securities believes that this issuance is not due to cash flow constraints, but is a proactive measure by the company to reserve for future capital expenditures and capacity expansion in the next 2-3 years. UBS also stated that the long-term valuation drivers for Conant Optical remain solid. It is expected that in the coming quarters, the potential profit contribution from its XR business will become clearer, and the release of new smart glasses products in China and overseas markets will continue to provide catalysts for the company's stock price.