UBS: First coverage on CONANT OPTICAL (02276) with a "buy" rating and a target price of 67 Hong Kong dollars.

UBS released a research report stating that it is covering CONANT OPTICAL (02276) for the first time, and the company is expected to become the world's second largest eyeglass lens manufacturer (by production volume) in 2024. In addition to expecting a 25% compound annual growth rate in net profit for its traditional eyeglass lens business from 2024 to 2027, the bank also anticipates that the rise of smart glasses will unleash Conant's long-term growth potential. With the continued progress of smart glasses, UBS expects that Conant's current 34 times 2026 expected PE ratio has room for revaluation. Based on the discounted cash flow method, a target price of 67 Hong Kong dollars is given, implying a 42 times 2026 expected PE ratio, and a "buy" rating is given.