Citigroup: Lowers target price of Lens Technology (06613) to 25 Hong Kong dollars, expecting 2026 to be a transitional year.

Citigroup released a research report stating that the target price for Lens Technology (06613.HK) H shares has been lowered from HK$27 to HK$25, with a rating of "buy"; while the target price for Lens Technology (300433.SZ) A shares has been lowered from RMB 32 to RMB 30, with a rating of "neutral". Despite disappointing performance in the first half of 2026, the bank believes that Lens Technology is expected to benefit from the iOS replenishment sentiment from the end of the second quarter to the end of the third quarter, and prefers H shares due to better risk-return. Citigroup pointed out that Lens Technology's quarterly performance fell short of expectations, with management attributing the weak performance to reduced purchases by customers due to rising memory prices, as well as exchange rate losses. Management expects the impact of exchange rate fluctuations to weaken in the coming quarters, revenue from foldable iOS models will contribute starting from May, and Android demand may pick up in the second half of 2026. In response to first quarter performance, the bank has lowered Lens Technology's 2026 net profit forecast by 13% to RMB 4.36 billion, while maintaining earnings forecasts for 2027 and 2028 broadly unchanged.