Changjiang Securities: Maintains "Buy" rating on Lens Technology, with multiple growth drivers emerging on both AI edge devices and computing power fronts.

Changjiang Securities noted in a research report that Lens Technology achieved a contrarian improvement in profitability, with multiple growth drivers emerging on both the AI edge and computing power fronts. Consumer electronics revenue came under short-term pressure, but product mix upgrades drove stronger profitability. Looking ahead to the second half of the year, the company's deep accumulation in areas such as UTG ultra-thin flexible glass is expected to accelerate component deliveries alongside downstream high-end foldable screen launches, driving revenue recovery. 2) The smart vehicle and cockpit business generated revenue of RMB 3.372 billion, accounting for 11.68% of total revenue, up 6.56% year-on-year; gross margin rose 2.69 pct year-on-year to 12.53%; multiple automotive projects successfully achieved mass delivery, cooperation with mainstream domestic and overseas automakers continued to deepen, laminated window glass successfully entered mass production and shipment, and the per-vehicle glass value content showed an upward trend. The company has secured a core position on the AI edge and is accelerating into a phase of scaled volume ramp-up; on the AI computing power side, it has built a multi-line layout, with a second growth curve accelerating into shape. The bank expects the company to achieve net profit attributable to shareholders of RMB 4.798/6.860/8.227 billion in 26/27/28, maintaining a "Buy" rating.