Macquarie: Maintains "outperform" rating on CONANT OPTICAL (02276), target price revised down to HK$88.

Magin released a research report stating that CONANT OPTICAL (02276) recently signed a memorandum of understanding with a leading global smart glasses technology company to produce its next generation of smart glasses. The bank believes that this is an important milestone for Conant, as they have a leading position in the ultra-thin lens technology for display glasses and have global certifications (FDA, CE, ISO). They are one of the few prescription lens manufacturers in the world that can jointly develop the next generation of smart glasses with technology giants. Magin lowered its earnings per share forecast for CONANT OPTICAL for 2026 and 2027 by 20% and 8% respectively to reflect the downward revision of revenue forecast for the AI glasses business and the adjustment of the number of shares, but maintained an "outperform" rating with a target price lowered from 95.6 Hong Kong dollars to 88 Hong Kong dollars, based on an unchanged forecast of a PE ratio of 30 for 2027.