Sinda Securities released a research report stating that Kangnait Optical (02276) expects its Net income attributable to the parent company for 2024-2026 to be 0.43/0.54/0.66 billion yuan respectively. On December 22, the company signed a placement agreement with the placement agent, which has conditionally agreed to have the assignee subscribe for 53.325 million placement shares at a placement price of HKD 15.86 per share (equivalent to 12.5% of the company's existing share capital and 11.11% after allocation). Assuming all placement shares are allocated, the total proceeds are expected to be HKD 0.846 billion, with a net amount of approximately HKD 0.828 billion, which will be used for the research, design, and manufacturing of lenses and visual solutions for smart glasses and XR head-mounted devices; the assignee is a wholly-owned subsidiary of Goertek Inc., and this placement will help broaden the company's shareholder and capital base and enhance the strategic relationship between the group and Goertek Inc.

Previously, on December 12, the company announced the acquisition of its second piece of land in Thailand for THB 0.24 billion (approximately RMB 0.048 billion), mainly for the construction of an XR product supporting lens production line. On December 10, the company announced that multiple R&D projects with several leading global Technology and Consumer Electronics companies, including multiple top enterprises in the USA, are progressing smoothly, and the company has successively received payments including R&D fees and small trial orders based on signed purchase Orders. In terms of the design path for future XR products, different customer needs are being validated and mass production is underway.

The report states that the company's top customers are steadily breaking through, and the advantages of customized lenses are becoming evident. In terms of smart glasses, the company mainly develops for international top customers, distinguishing itself from domestic buckled/insertion/magnetic nearsighted lens solutions, with comfortable fit being an important direction for overseas promotion. Currently, there are still unmet demands regarding the need for disassembly caused by changes in degree over time. The experience with fit lenses is significantly better, and the lenses are lighter. In the domestic market, the company mainly promotes collaboration with major mobile phone manufacturers, and leveraging over a decade of experience in customized lens production capabilities, is expected to gradually break through to top customers.

The bank indicated that Kangnait's high-end products are increasing in proportion, its own brand is growing rapidly, and production capacity in Thailand is steadily expanding. The gross margin for standardized lenses is over 30%, the shipment proportion of high refractive index products is increasing, and the gross margin for customized lenses is around 60%. As the proportion of customized products increases, the overall gross margin is expected to continue to optimize. The company's lens products are sold globally, with nearly 70% of revenue coming from Overseas, Thai production capacity is steadily expanding (automation production lines for high-end refractive Resin lenses and semi-finished modules), and there is little risk exposure to exports to the USA. In the domestic market, relying on differentiated 1.74 products for rapid breakthroughs, the bank estimates the current channel coverage is still relatively low, and the market is expected to expand rapidly in the future. Regarding the own brand, the bank expects that the company's own brand revenue will account for over 50%, relying on a rich product SKU range, leading product technology performance, and excellent cost performance, to continuously achieve breakthroughs in the small B-end.