Company Coverage
Lens Technology (6613 HK): 2Q26: Margin Expansion Drives Earnings Beat Despite Smartphone Revenue Drag
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$22.96
HK$43.10
+87.7%
HK$43.70
Analyst
Analyst
Highlights
Net profit beat consensus by 48.7% to Rmb726m amid low expectations, driven by strong margin improvements across key segments through yield gains and higher-value product mix.
Smartphone headwinds are bottoming out, while auto segment margin expansion and new emerging tech initiatives will support long-term growth.
Maintain BUY. Target price trimmed to HK$43.10.
Analysis
Margin expansion drove a solid 2Q26 profit beat. Revenue fell 7.4% yoy but grew 4.2% qoq to Rmb14.7b, marginally below consensus estimates of Rmb14.9b, largely due to shipment volume weakness in consumer devices. Gross margin expanded 2.5ppt yoy and 3.7ppt qoq to 18.2%, 2.5ppt above consensus, due to cuts in the low-margin assembly business and improvements in yields. This supported a net profit growth of 1.8% yoy to Rmb726m, swinging from 1Q26’s Rmb150m net loss, which is a 48.7% beat compared with consensus.
Highlights
Net profit beat consensus by 48.7% to Rmb726m amid low expectations, driven by strong margin improvements across key segments through yield gains and higher-value product mix.
Smartphone headwinds are bottoming out, while auto segment margin expansion and new emerging tech initiatives will support long-term growth.
Maintain BUY. Target price trimmed to HK$43.10.
Analysis
Margin expansion drove a solid 2Q26 profit beat. Revenue fell 7.4% yoy but grew 4.2% qoq to Rmb14.7b, marginally below consensus estimates of Rmb14.9b, largely due to shipment volume weakness in consumer devices. Gross margin expanded 2.5ppt yoy and 3.7ppt qoq to 18.2%, 2.5ppt above consensus, due to cuts in the low-margin assembly business and improvements in yields. This supported a net profit growth of 1.8% yoy to Rmb726m, swinging from 1Q26’s Rmb150m net loss, which is a 48.7% beat compared with consensus.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$22.96
HK$43.10
+87.7%
HK$43.70
Analyst
Analyst
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