Citigroup Maintains Buy Rating for Lens Technology, Downgrades Target Price to 25 HKD

Citibank, in its report dated May 20, 2026, maintained a 'Buy' rating for Lens Technology H-shares with a target price of 25.00 HKD; A-shares maintained a 'Neutral' rating with a target price of 30.00 CNY. Citi emphasized that the company is in an upcycle driven by metal casing and new energy vehicle business, with an estimated compound annual growth rate (CAGR) of net profit reaching thirty-one percent over the next three years.

In terms of capital operations, Lens Technology plans to acquire 27.81% of Giant International's shares for 734 million HKD to expand its personal computer clients and enhance production capacity utilization. Negotiations for the acquisition of Yuan Huang Technology, a supplier of NVIDIA rack components, are also underway; if successfully obtaining the supplier code, the company's product line will be enriched to fields such as cold plates and distribution manifolds.

In the smartphone chain, the company expects to gain a higher share in the iOS Pro version of overseas major clients, with the new standard version expected to be mass produced in the fourth quarter of 2026. With the shift to titanium metal in 2027, the average selling price will be increased, and the supply of folding screen phone products is expected to reach a unit value of 100 to 150 USD. Due to the preparation of related equipment, the company's capital expenditure this year will be higher than in previous years.

Regarding AI hardware and emerging fields, the company supplies components to a major US AI glasses client, with a unit value of approximately 20 USD. The robotics business achieved over 1 billion CNY in revenue in 2025, and with the core client's production scale扩大ing to more than 10,000 units this year, the business income is expected to double. In addition, the AI edge project the company is involved in is expected to be mass produced by the end of the year, and the shipment volume of commercial aerospace ground terminals will also double this year.