Jinwu Financial News | According to Guoyuan International Research, Conet Optics (02276) has a product network of more than 6 million SKUs, including various types of standardized lenses and customized lenses tailored to customer needs. The total sales volume of the company in 2023 was 79.4 million pairs, and the sales CAGR for 2020-2023 was 9.89%. The company is deeply involved in overseas markets and provides products and services to more than 90 countries around the world. According to Frost & Sullivan, the company was the largest lens exporter in China in 2020, with a market share of about 7.3% in terms of export value. At the same time, the company is the only Chinese company among the top ten lens companies in the world, ranking 9th in 2020 according to lens revenue statistics.
According to the bank, the company's “tailor-made” customized products for consumers developed rapidly, with customized product revenue growing 16.7% in 2023; the company strengthened its own brand building, cooperated with hospitals to establish optometry centers, develop online channels for Douyin and WeChat applets, and promote the high-end sub-brand Asahi Fuji to explore the Chinese market.
The bank predicts that the company's net profit for 2023-2026 will be RMB 4.04, 4.73, and $523 million, respectively, corresponding increases of 23.4%, 17.3%, and 10.5%. The three-year compound growth rate of net profit to mother will be 16.9%. After considering risk factors, the bank gave the company a target valuation of 12 times PE (2023), corresponding to a share price of about HK$10.18. The expected room for stock price increase was 24.6%, covering the first time, and gave it a “buy” rating.