Shanghai Conant Optical Co. Ltd. Class H (2276) AI Stock Analysis

• Market Cap: HK$20.06B
• Dividend Yield: 0.02%
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 37.5
• Beta (1Y): -0.08
• Revenue Growth: 14.99%
• EPS Growth: 31.70%
• Country: HK
• Employees: 2,723
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.58
• Shares Outstanding: 479,925,000
• 10 Day Avg. Volume: 2,480,205
• 30 Day Avg. Volume: 2,216,543
• PEG Ratio: 0.70
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$38.00
• Price Target Upside: -5.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$45.00 ▲(11.80%Upside)

Shanghai Conant Optical Co. Ltd. Class H's strong financial performance and positive technical indicators are the primary contributors to its favorable stock score. However, a high P/E ratio suggests potential overvaluation, tempering the overall outlook.

Shanghai Conant Optical Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Shanghai Conant Optical Co., Ltd. engages in the manufacture and sale of resin spectacle lenses in China, Asia, the United States, Europe, the Americas, Africa, and Oceania. The company offers standardized and customized lenses. It serves spectacle lens brand owners and ophthalmic optic companies. The company was incorporated in 2011 and is headquartered in Shanghai, China.

How the Company Makes Money

Shanghai Conant Optical Co. Ltd. generates revenue through the sale of its diverse range of optical lenses and related products. The company's primary revenue streams include wholesale distribution to optical retailers, partnerships with eyewear brands for the supply of lenses, and direct sales to consumers. By leveraging advanced manufacturing technologies and maintaining high standards of quality, the company secures long-term contracts and partnerships, contributing significantly to its earnings. Additionally, Conant Optical may engage in licensing agreements for its proprietary lens technologies, further diversifying its revenue base.

Shanghai Conant Optical Co. Ltd. Class H Financial Statement Overview

Summary

Shanghai Conant Optical Co. Ltd. Class H demonstrates strong financial performance with impressive revenue and profit growth. The company maintains a stable balance sheet with low leverage, supported by efficient cash flow management. Despite some fluctuations in free cash flow growth, the company is well-positioned for future growth and financial stability.

Income Statement

The company has demonstrated strong growth in revenue, with a consistent increase over the past five years. The gross profit margin has been stable, reflecting effective cost management. The net profit margin has also improved, indicating enhanced profitability. The EBIT and EBITDA margins are healthy, showcasing operational efficiency. Overall, the company exhibits robust revenue and profit growth.

Balance Sheet

The balance sheet reveals a solid equity position with a favorable equity ratio. The debt-to-equity ratio is low, indicating prudent financial leverage. The return on equity has shown improvement, aligning with increased profitability. The company’s assets are well utilized, contributing to financial stability.

Cash Flow

The cash flow statement reflects a strong operating cash flow, which consistently exceeds net income, indicating high-quality earnings. However, there is a decline in free cash flow growth, requiring attention. The company maintains a healthy free cash flow to net income ratio, supporting financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.06B	1.76B	1.56B	1.36B	1.09B
Gross Profit	795.10M	658.13M	537.87M	460.16M	382.05M
EBITDA	582.02M	465.77M	354.97M	296.89M	248.04M
Net Income	428.28M	327.02M	248.57M	183.52M	128.46M
Balance Sheet
Total Assets	2.39B	1.98B	1.79B	1.81B	1.44B
Cash, Cash Equivalents and Short-Term Investments	648.52M	551.52M	452.14M	735.34M	201.85M
Total Debt	317.54M	214.95M	355.08M	599.23M	675.60M
Total Liabilities	803.23M	589.41M	643.02M	873.95M	939.67M
Stockholders Equity	1.59B	1.39B	1.15B	937.40M	504.53M
Cash Flow
Free Cash Flow	252.62M	348.50M	65.59M	20.52M	192.17M
Operating Cash Flow	477.81M	480.68M	185.12M	58.28M	243.09M
Investing Cash Flow	-152.13M	-273.24M	-158.76M	140.44M	4.70M
Financing Cash Flow	-157.07M	-212.35M	-281.00M	189.27M	-108.05M

Shanghai Conant Optical Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2276, the sentiment is Positive. The current price of 40.25 is below the 20-day moving average (MA) of 40.98, above the 50-day MA of 35.78, and above the 200-day MA of 25.06, indicating a neutral trend. The MACD of 2.01 indicates Positive momentum. The RSI at 51.52 is Neutral, neither overbought nor oversold. The STOCH value of 18.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2276.

Shanghai Conant Optical Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2276	75 Outperform	HK$20.06B	37.52	28.81%	0.02%	14.99%	31.70%
Sector *	52 Neutral	$7.61B	0.11	-63.03%	2.07%	16.35%	0.29%
5HW	―	€9.38M	―	-274.02%	―	―	―
1MD	―	€432.64M	8.65	15.04%	4.23%	―	―
1942	―	HK$823.36M	―	-25.13%	―	―	―

Shanghai Conant Optical Co. Ltd. Class H Corporate Events

Shanghai Conant Optical Schedules Board Meeting for Interim Results and Dividend Decision

Shanghai Conant Optical Co., Ltd. announced that its board of directors will hold a meeting on August 8, 2025, to consider and approve the unaudited interim results for the first half of 2025 and discuss the potential payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential returns, impacting its market positioning and investor relations.

Shanghai Conant Optical Updates Supervisor Remuneration Details

Shanghai Conant Optical Co., Ltd. has issued a supplemental announcement to its annual reports for the years ending December 31, 2023, and 2024, detailing the remuneration of its supervisors. The announcement provides updated information on the salaries, bonuses, and retirement benefits of the company’s supervisors, reflecting changes in personnel and compensation over the two years. This update is significant for shareholders and potential investors as it offers transparency into the company’s governance and financial allocations.

Shanghai Conant Optical Projects Significant Profit Growth for H1 2025

Shanghai Conant Optical Co., Ltd. announced a positive profit alert, expecting a net profit increase of at least 30% for the first half of 2025 compared to the same period in 2024. This growth is attributed to a rise in sales volume of high refractive index and functional products, along with an increased average selling price due to a favorable product mix.

Shanghai Conant Optical Announces Board Committee Changes

Shanghai Conant Optical Co., Ltd. announced changes in the composition of its Nomination and Remuneration Committees, effective from July 3, 2025. Dr. Wu Ying has moved from the Remuneration Committee to the Nomination Committee, while Mr. Chen Yi has taken over as chairman of the Remuneration Committee. These changes are in response to amendments in the Hong Kong Stock Exchange’s Listing Rules and aim to enhance corporate governance practices, balance responsibilities, and strengthen committee effectiveness.

Shanghai Conant Optical Announces US$45 Million Financial Product Subscription

Shanghai Conant Optical Co., Ltd. announced a discloseable transaction involving the subscription of financial products totaling US$45 million, split between Huatai International Financial Product and Citigroup Financial Product. This strategic financial move is subject to notification and announcement requirements under the Hong Kong Listing Rules, indicating a significant investment decision that could impact the company’s financial positioning and stakeholder interests.

Shanghai Conant Optical Declares Final Dividend for 2024

Shanghai Conant Optical Co., Ltd. has announced a final cash dividend of RMB 0.16 per share for the year ending December 31, 2024, with the payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0922. The dividend will be distributed to shareholders on August 11, 2025, with specific withholding tax rates applied to non-resident enterprises and individuals, potentially impacting the net dividend received by international stakeholders.

Shanghai Conant Optical Approves Key Resolutions at AGM

Shanghai Conant Optical Co., Ltd. held its Annual General Meeting (AGM) on June 12, 2025, where all proposed resolutions were passed by shareholders. The meeting, compliant with PRC laws and regulations, saw a 6.93% shareholder turnout, and resolutions including the approval of the annual report, board report, supervisory committee report, and consolidated financial statements for the year ended December 31, 2024, were overwhelmingly supported.

Shanghai Conant Optical Declares Final Dividend for 2024

Shanghai Conant Optical Co., Ltd. has announced a final cash dividend of RMB 0.16 per share for the financial year ending December 31, 2024, with the payment to be made in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.0922. The dividend distribution reflects the company’s financial health and commitment to returning value to its shareholders, with specific withholding tax rates applied based on the residency status of the shareholders, impacting non-resident enterprises and individuals differently.

Shanghai Conant Optical Expands Global Production with New Japanese Facility

Shanghai Conant Optical Co., Ltd. announced plans to invest approximately $4 million in a new automated RX resin lens production line in Japan through its subsidiary, Asahi Lite Optical Co., Ltd. This strategic move aims to strengthen the company’s supply chain resilience, particularly in the U.S. market, and enhance responsiveness in the Asia Pacific region. The initiative is expected to increase production capacity by 20% and reduce overall production costs by synergizing with existing bases in China. This investment marks a significant step in the company’s global manufacturing strategy, reinforcing its position in the high-end optical resin lens market.

Shanghai Conant Optical Announces AGM and Share Issuance Mandate

Shanghai Conant Optical Co., Ltd. has announced its annual general meeting (AGM) scheduled for June 12, 2025, where shareholders will consider and approve various resolutions including the annual report, financial statements, and the re-appointment of Deloitte Touche Tohmatsu as the company’s auditor. Additionally, a special resolution will be discussed to grant the board a general mandate to issue new shares, potentially impacting the company’s capital structure and market positioning.