BofA Securities has raised its target price for Lens Technology (06613) from HK$24 to HK$27, while reiterating a "Buy" rating, citing steady expansion in core operations and business diversification. The firm also lifted its target price for the company's A-share listing (300433.SZ) from RMB 27 to RMB 30, reflecting a 30% premium over the H-share, though it maintained an "Underperform" rating on the A-shares due to elevated valuation, which equates to 30 times forward earnings.

The brokerage noted that Lens Technology swung back to profitability in the second quarter, beating expectations, with net profit reaching RMB 726 million, supported by improved gross margins and disciplined operating expense control. First-half revenue stood at RMB 28.9 billion, down 12% year-over-year, falling 4% and 8% short of the firm's and market estimates, respectively. Gross margin came in at 14.7%, surpassing the firm's forecast by 0.4 percentage points and the market's by 0.3 percentage points.

Operating profit for the period was RMB 881 million, up 9% year-over-year, exceeding the firm's projection by 41% but trailing the market consensus by 19%. In light of the second-quarter results, BofA Securities has raised its 2026 earnings forecast for Lens Technology by 6%, while making minor adjustments to its 2027-2028 projections.