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

• Market Cap: HK$30.02B
• Dividend Yield: 0.63%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 51.9
• Beta (1Y): 0.08
• Revenue Growth: 13.58%
• EPS Growth: 24.59%
• Country: HK
• Employees: 2,723
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.65
• Shares Outstanding: 479,925,000
• 10 Day Avg. Volume: 1,581,306
• 30 Day Avg. Volume: 2,077,117
• PEG Ratio: 0.70
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 4.75
• 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$65.74
• Price Target Upside: 21.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$69.00 ▲(27.54% Upside)

Score is driven primarily by strong financial performance (growth, profitability, low leverage, and high-quality operating cash flow) and supported by bullish technical positioning (above key moving averages with positive MACD). The main constraint is valuation, with a high P/E and limited dividend yield.

Positive Factors

Sustained revenue and margin expansion

Consistent multi-year revenue growth and stable gross/net margins indicate durable demand and effective cost control. Over the next 2–6 months this supports continued reinvestment in production and R&D, underpins margin sustainability, and reduces operational downside risk.

Conservative leverage and improving ROE

A solid equity base and low debt-to-equity give the company financial flexibility to fund capex, weather cyclical demand swings, and pursue strategic initiatives without overreliance on external financing, supporting stability and strategic optionality over the medium term.

High-quality operating cash generation

Operating cash flow consistently above net income signals earnings quality and strong conversion of profits into cash. That durable cash generation supports capex, working capital and selective shareholder returns, and reduces refinancing risk across business cycles.

Negative Factors

Declining free cash flow growth

A decline in free cash flow growth is a structural concern: it can constrain investments, limit dividend or buyback capacity, and force reliance on external funding for growth initiatives. Over months this can hinder strategic execution and reduce financial flexibility.

Limited public guidance and disclosure

Absence of earnings-call guidance and limited public disclosure reduces visibility for investors and analysts, making forecasting harder and increasing perceived execution risk. Over the medium term, weaker disclosure can raise cost of capital and complicate long-term planning.

Modest dividend policy

A modest dividend yield despite strong operating cash flow suggests limited cash returned to shareholders. Structurally, that may reduce appeal to income-oriented investors and signal management prioritizes reinvestment or retention, potentially pressuring shareholder returns over time.

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 multiple streams, primarily from the sale of optical lenses and eyewear products. The company earns income from both direct retail sales and bulk orders to distributors and retailers. Key revenue streams include custom lens manufacturing, which allows for personalized solutions that cater to specific customer needs, contributing significantly to profit margins. Additionally, partnerships with health professionals and optical retailers enhance market reach and drive sales. The company also benefits from technological advancements in lens production, allowing for cost-effective manufacturing processes that improve profitability.

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

Summary

Strong overall fundamentals: solid revenue and profit growth with healthy EBIT/EBITDA margins (income statement strength), a stable balance sheet with low leverage and improving ROE, and operating cash flow consistently exceeding net income. Main offset is softer free cash flow growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.17B	2.06B	1.76B	1.56B	1.36B	1.09B
Gross Profit	857.03M	795.10M	658.13M	537.87M	460.16M	382.05M
EBITDA	650.83M	582.02M	465.77M	354.97M	296.89M	248.04M
Net Income	492.42M	428.28M	327.02M	248.57M	183.52M	128.46M
Balance Sheet
Total Assets	3.25B	2.39B	1.98B	1.79B	1.81B	1.44B
Cash, Cash Equivalents and Short-Term Investments	1.32B	648.52M	551.52M	452.14M	735.34M	201.85M
Total Debt	232.15M	317.54M	214.95M	355.08M	599.23M	675.60M
Total Liabilities	734.95M	803.23M	589.41M	643.02M	873.95M	939.67M
Stockholders Equity	2.52B	1.59B	1.39B	1.15B	937.40M	504.53M
Cash Flow
Free Cash Flow	188.22M	252.62M	348.50M	65.59M	20.52M	192.17M
Operating Cash Flow	443.03M	477.81M	480.68M	185.12M	58.28M	243.09M
Investing Cash Flow	-721.19M	-152.13M	-273.24M	-158.76M	140.44M	4.70M
Financing Cash Flow	522.63M	-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: 54.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 54.1 is below the 20-day moving average (MA) of 58.09, above the 50-day MA of 54.02, and above the 200-day MA of 42.47, indicating a bullish trend. The MACD of 2.36 indicates Negative momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 60.23 is Neutral, 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
3600	74 Outperform	HK$5.50B	11.59	17.42%	3.65%	6.87%	18.37%
2276	72 Outperform	HK$30.02B	51.94	24.57%	0.63%	13.58%	24.59%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0907	42 Neutral	HK$46.26M	17.67	40.65%	―	198.46%	―

Shanghai Conant Optical Co. Ltd. Class H Corporate Events

Shanghai Conant Optical to Raise HK$1.4 Billion via Discounted Share Placement

Shanghai Conant Optical Co., Ltd., a PRC-incorporated optical company listed in Hong Kong, has launched a substantial share placement to institutional investors under its general mandate. The company has conditionally agreed to place 27,000,000 new H-shares at HK$52.00 per share through placing agents to at least six independent placees, representing approximately 5.63% of its existing issued share capital and about 5.33% of its enlarged share capital. The placing price reflects discounts of around 11.1% to the previous closing price and 14.38% and 7.80% to the five-day and twenty-day average closing prices respectively, positioning the deal as a discounted fundraising aimed at swift execution. Assuming full placement, the transaction is expected to raise gross proceeds of HK$1.404 billion and net proceeds of about HK$1.40 billion, modestly diluting existing shareholders while strengthening the company’s capital base, subject to final listing approval by the Stock Exchange’s Listing Committee.

The most recent analyst rating on (HK:2276) stock is a Hold with a HK$66.00 price target. To see the full list of analyst forecasts on Shanghai Conant Optical Co. Ltd. Class H stock, see the HK:2276 Stock Forecast page.

Shanghai Conant Optical Forms Smart-Glasses Lens Joint Venture With Goertek Optical

Shanghai Conant Optical Co., Ltd., through its wholly owned subsidiary Asahi Lite, is expanding its presence in advanced eyewear technologies, concentrating on prescription lenses and optoelectronic components tailored for smart glasses and immersive-reality devices. The company has entered into a joint venture agreement with Goertek Optical to establish a new entity focused on R&D, production and sales of prescription lenses for smart glasses, waveguide eyepieces (with and without myopia correction), and electrochromic and eye-tracking optoelectronic eyepiece components for AI/AR/VR/MR glasses, with an initial registered capital of US$1 million, 30% funded by Asahi Lite and 70% by Goertek Optical. As Goertek Inc. is a substantial shareholder of Shanghai Conant Optical, the deal is classified as a connected transaction under Hong Kong listing rules, triggering reporting and announcement requirements but exempting the company from circular and independent shareholders’ approval, signaling a strategically important yet relatively small-scale step to deepen its role in next-generation smart eyewear alongside a key shareholder-partner.

The most recent analyst rating on (HK:2276) stock is a Hold with a HK$66.00 price target. To see the full list of analyst forecasts on Shanghai Conant Optical Co. Ltd. Class H stock, see the HK:2276 Stock Forecast page.

Shanghai Conant Optical Flags At Least 30% Profit Growth for 2025

Shanghai Conant Optical Co. has issued a positive profit alert, stating that it expects net profit attributable to shareholders for the year ended 31 December 2025 to rise by at least 30% compared with 2024, based on preliminary unaudited management accounts. The company attributes the anticipated earnings growth to strong sales of its 1.74 refractive index lenses and other multifunctional products, improved economies of scale and higher automation levels, and efforts to optimize its financing structure and lower financing costs, although the figures remain subject to audit and possible adjustment, with full annual results due by end-March 2026 and a cautionary note to investors regarding trading in its shares.

The most recent analyst rating on (HK:2276) stock is a Hold with a HK$62.00 price target. To see the full list of analyst forecasts on Shanghai Conant Optical Co. Ltd. Class H stock, see the HK:2276 Stock Forecast page.