CONANT OPTICAL (02276) surged more than 3%, gaining 3.38% to HK$53.6 by the time of writing, with a turnover of HK$11.9972 million.

According to reports, demand for Quark AI glasses has far exceeded expectations, with delivery times for the Quark AI Glasses S1 extended to 45 days on platforms like Tmall, Douyin, and JD.com. To address the upcoming Spring Festival sales peak, new assembly lines have been added at core suppliers, with production capacity gradually ramping up.

Huatai Securities noted that CONANT OPTICAL is the exclusive lens supplier for Quark AI glasses. For instance, lenses with refractive indices of 1.60, 1.67, and 1.74 for the S1 model are priced HK$719, HK$899, and HK$1,529 higher than plain lenses, respectively. In the medium to long term, the company holds a first-mover advantage and high technical barriers in the XR sector, positioning it to strengthen its competitive edge as the industry evolves.

The brokerage also highlighted that CONANT OPTICAL's Japanese factory is expected to be completed in Q4, adding 600,000 customized lens units to its capacity, while tariffs on U.S. business may further decrease. With the upcoming launch of its Thailand plant next year, the company's global supply capabilities will continue to expand, supporting steady growth in its core business.