Lyon: Lens Technology (06613) faces short-term challenges, target price lowered to HKD 24.

Lyon released a research report stating that it has lowered the target price of Lens Technology (06613) H shares from 31.5 Hong Kong dollars to 24 Hong Kong dollars, equivalent to a forecasted P/E ratio of 16 times for next year. The target price of Lens Technology (300433.SZ) A shares was also lowered from 32.7 yuan to 32.6 yuan, maintaining a "outperform" rating. Lens Technology's stock price fell by over 10% this morning after announcing first quarter results. In the first quarter of this year, revenue fell by 17% to 14.1 billion yuan, recording a net loss of 150 million yuan, affected by a decrease in Android phone deliveries and exchange rate losses. The company expects that the foldable smartphones of its major customers will be released as scheduled, and predicts that the delivery volume of ultra-thin glass for foldable smartphones will increase in the next quarter. The company also expects its acquisition of Yuan Shi Technology to be completed between April and May this year. Lyon believes that the company is facing short-term challenges, but still has many long-term growth drivers, including foldable smartphones, smart glasses, and AI servers. Profit forecasts for 2026 and 2027 have been revised down by 12% and 4% to 4.8 billion and 6.6 billion yuan respectively.