Lyon: Lowering Target Price of Blue Sky Technology's A-shares, Company Faces Short-term Challenges.

Lyon has published a research report stating that the revenue of Lansite Technology in the first quarter of this year fell by 17% year-on-year to 14.1 billion yuan, with a net loss of 150 million yuan, due to the decrease in delivery volume of Android phones and exchange losses. The company expects that the foldable phones of its main customers will be released on time, and the delivery volume of ultra-thin glass for foldable phones is expected to increase starting from the second quarter. The company also expects to complete the acquisition of Yuanshi Technology from April to May this year. Lyon believes that the company is facing short-term challenges, but still has many long-term growth drivers, including foldable phones, smart glasses, and AI servers. The profit forecasts for 2026 and 2027 have been revised down by 12% and 4% to 4.8 billion and 6.6 billion yuan respectively, and the target price of its H shares has been lowered from 31.5 Hong Kong dollars to 24 Hong Kong dollars, while the target price of its A shares has been lowered from 32.7 yuan to 32.6 yuan, both maintaining a "outperform" rating.