"The light boat has passed through thousands of mountains", Lens Technology (06613) hits bottom and rebounds to meet the opportunity on the right?

The leading global precision manufacturing platform Lens Technology (06613) has rebounded for two consecutive days after hitting bottom. Have you seen the opportunity on the right? It is understood that since February of this year, due to negative factors, Lens Technology's stock price performance has been relatively flat. In fact, from the perspectives of news, funds, and fundamentals, there are observable trends in Lens Technology's market value this year. Various factors from multiple dimensions have suppressed the company's valuation, leading to a continuous decline. However, just as a light boat has passed through ten thousand heavy mountains, its valuation has retreated to historical lows. With performance expectations, it may usher in a right-side investment opportunity after hitting bottom. Controlling shareholder's increase in holdings plan boosts market confidence The Hong Kong stock market is very sensitive to information noise, and information noise has guided the movement of Lens Technology's stock price. In January of this year, there were several instances of the company's shareholders transferring shares, coupled with mostly negative research reports from investment banks such as Citigroup, Lyon, and Bank of America, leading to a market misjudgment. However, in reality, most investment banks have a long-term positive outlook. For example, Bank of America believes that in the short term, the company's performance is under pressure, but benefiting from the specifications upgrade of the iPhone from 2026 to 2027, and its diversification into new business areas should support long-term growth. Information noise, combined with technical patterns, completely suppressed the company's valuation. The company was listed in July 2025, with a large volume traded on the first day. From August to October, the price and volume drove the stock price from HK$19 to around HK$33. However, there was no volume drop from the high in October, indicating that there were short-term forces leading the trend. The stock price retraced to a bottom in late November and rebounded, with three consecutive days of large volume on January 9th, 10th, and 23rd, totaling HK$4.052 billion, forming a clear head and shoulders pattern, indicating that the main funds have likely completed their selling. Of course, some other shareholders see the value in continuing to increase their holdings. For example, UBS Group increased their holdings three times in January for a total of 2.0246 million shares. JPMorgan reduced costs through trading and increased their holdings by 668,498 shares on April 14th, with an investment of HK$135.509 million, investing in the company's development with real money. It is worth mentioning that Lens Technology has been stabilizing the stock price and conducting buybacks in the secondary market. They started repurchasing in March this year, and have only bought back six times so far, with a total repurchase of 9.7043 million shares and a repurchase amount of HK$285 million. In addition, on April 17th, the company announced that the controlling shareholder plans to increase their holdings by no less than HK$100 million worth of A-shares, for a period of no more than six months, indicating a positive outlook to boost investor confidence. Fundamental AI transformation support, long-term may welcome right-side opportunities If market value represents the A side of Lens Technology, then fundamentals are the B side of the company, with enterprise value as the valuation anchor and fundamentals as the biggest variable in Lens Technology's market value movement. It is understood that Lens Technology is a one-stop precision manufacturing solutions provider for the intelligent terminal industry chain and enjoys a leading advantage in the industry. According to Frost & Sullivan data, based on 2024 revenue, the company holds a 13.0% share in the global consumer electronics precision structural parts and module integrated solutions industry, and a 20.9% share in the global intelligent automobile interactive system integrated solutions industry, ranking first in both. The company has three core businesses: smart phones and computers, smart cars and cabins, and smart headsets and devices. The business structure is very stable, with the revenue share of the above businesses in 2025 being 82.23%, 8.68%, and 5.35% respectively. In addition, other smart terminal revenue accounts for 1.41%. Smartphones and computers are the foundation, driving the company's growth. Lens Technology is closely following the AI trend, undergoing a full AI transformation across all businesses, investing in research and development for various areas such as foldable smartphones, Siasun Robot & Automation, AI glasses, smart cars, AI servers, TGV glass substrates, optical waveguide lenses, HDD glass hard drives, and aerospace-grade UTG glass. At the same time, the company has established development strategies in three key areas: AI servers, Siasun Robot & Automation, and commercial aerospace, nurturing diverse growth points. From the current progress of the layout, the advancement in the three major areas is going smoothly. In the AI computing power field, the company entered through acquisitions, with plans to acquire 95.1% equity of Yanken Technology in December last year. In the Siasun Robot & Automation field, the company has achieved full-stack deployment from components to modules to complete machine assembly and secondary development, cooperating extensively with domestic and foreign customers. The Yong'an Siasun Robot & Automation Park has a production capacity of 500,000 humanoid Siasun Robot & Automation units. In the commercial aerospace field, the company is entering the field by developing new materials such as aerospace-grade UTG. In 2025, the company's Siasun Robot & Automation whole-machine business will enter the full-scale delivery phase, with shipments exceeding 10,000 units for humanoid Siasun Robot & Automation and quadruped robots, achieving annual operating income of over 1 billion RMB. This means that the company's three major areas are no longer just stories but are gradually contributing to revenue and are expected to become core growth drivers. However, the focus of Lens Technology's core performance remains on the business AI transformation, including the performance of AI smart terminals, AI glasses, and other AI devices. The company's management has mentioned in performance conference calls that the company is in a period of transition from old to new momentum, with a lot of investment in various emerging sectors. There may be a mismatch between investment and output in the short term, but it is expected that growth points in various sectors will erupt in the second half of this year and next year. Long-term performance expectations are consistent among major investment banks, with Citi's research report indicating that the company's short-term performance is under pressure but remains optimistic for growth in the second half of the year and expects accelerated growth in 2027. Aijian Securities is very optimistic about the company, believing that its years of accumulation in materials processing and precision manufacturing are gradually advancing into the business areas of Siasun Robot & Automation, AI server cabinet components, liquid-cooled heat dissipation systems, server storage, and commercial aerospace, giving it a buy rating. In conclusion, although multiple factors have contributed to the decline in Lens Technology's market value in 2026, the company's fundamentals have support, the controlling shareholder's increase in holdings plan has injected confidence into the market, and the initial formation of growth curves in the three major areas has high growth expectations. The company's short-term stock price has hit bottom and rebounded, indicating long-term investment value. Currently, the premium of AH shares is as high as 52%, with a relatively high value-at-risk ratio.