Huachuang Securities released a research report stating that CONANT OPTICAL (02276) has a deep presence in the eyewear manufacturing industry, with both domestic and international sales advancing simultaneously. Structural upgrades are expected to drive continuous improvement in profitability. The company has already collaborated with several leading 3C giants to develop smart glasses, indicating promising growth prospects. Considering the accelerated development of the smart glasses industry chain and the company's steadily improving product mix, the firm forecasts net profits attributable to parents for 2025-2027 to be RMB 560 million, RMB 700 million, and RMB 870 million, respectively, corresponding to P/E ratios of 41x, 34x, and 27x. Based on comparable company valuations, a 2026 P/E multiple of 40x is applied, maintaining a target price of HK$63.63 and a "Strong Buy" rating. The main points from Huachuang Securities are as follows:
Event: On December 30, 2025, the National Development and Reform Commission and the Ministry of Finance released the 2026 national subsidy policy, which for the first time includes smart glasses in the subsidy scope. The subsidy standard is 15%, with a single-item subsidy cap of RMB 500 (the price of a single product must not exceed RMB 6,000). Calculations suggest that smart glasses priced over RMB 3,300 can essentially receive the full subsidy amount.
Lowering the purchase threshold is expected to accelerate market penetration. Looking at the Tmall Double 11 XR equipment best-seller list, products priced below RMB 4,000 accounted for over half of the top 20 best-selling items. The prices of mainstream AI/AR glasses products generally meet the national subsidy requirements (prices are mostly under RMB 6,000). The report argues that post-subsidy price reductions could further stimulate demand from the consumer end, maintaining a positive outlook for increased smart glasses penetration next year.
With CES approaching, attention should be paid to subsequent new product developments. The 2026 International Consumer Electronics Show (CES) will be held in North America from January 6 to 9. Preliminary statistics from VR Tuoluo indicate that over 50 AI glasses exhibitors will participate in this year's CES. Domestic and international manufacturers are集中 releasing/showcasing new products and reference designs, significantly accelerating category education and mindshare capture. From an industry chain perspective, with technological iterations and new product launches, the supply side and ecosystem are expected to enter a rapid development phase, creating a resonance effect with national subsidies characterized by "prosperous supply + demand stimulation." It is recommended to continuously monitor the pace of subsequent new product promotions.
Positive feedback from key domestic customers supports continued optimism for volume growth in consumer-grade products. CONANT is the exclusive lens supplier for Quark AI glasses. Taking the S1 model as an example, lenses with refractive indices of 1.60, 1.67, and 1.74 are priced RMB 719, RMB 899, and RMB 1,529 higher than plain lenses, respectively. In the medium to long term, the company holds a significant first-mover advantage and high technical barriers in its XR business. It is well-positioned to strengthen its competitive edge during the industry's product refresh cycle, and the report remains optimistic about the company's strategic position in the supply chain.
Risk warnings include potential underperformance in smart glasses development, slower-than-expected expansion of domestic channels, and intensifying industry competition.