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

• Market Cap: HK$26.66B
• Dividend Yield: 0.63%
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 44.8
• Beta (1Y): 0.03
• 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$61.45
• Price Target Upside: 13.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$61.00 ▲(12.75% Upside)

Shanghai Conant Optical Co. Ltd. Class H has a strong financial foundation, with robust revenue and profit growth, and a stable balance sheet. The technical analysis indicates bullish momentum, although the stock may be overbought. Valuation is a concern, with a high P/E ratio suggesting the stock is expensive. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The company has shown consistent revenue growth, indicating strong market demand and effective business strategies, supporting long-term expansion.

Profitability

Improved net profit margins reflect efficient cost management and operational effectiveness, contributing to sustainable profitability.

Balance Sheet Health

A low debt-to-equity ratio suggests strong financial health, providing stability and flexibility for future investments and growth.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to fund new projects or return capital to shareholders, impacting long-term growth.

Valuation Concerns

A high P/E ratio could indicate overvaluation, potentially limiting stock price appreciation and increasing risk for investors.

Earnings Call Absence

The lack of earnings call data limits transparency and investor insight into management's strategic direction and operational performance.

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

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	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: Positive
• 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 above the 20-day moving average (MA) of 52.91, above the 50-day MA of 50.57, and above the 200-day MA of 39.82, indicating a bullish trend. The MACD of 1.12 indicates Positive momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 53.83 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$5.11B	10.76	17.42%	3.65%	6.87%	18.37%
2276	72 Outperform	HK$26.66B	44.80	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	16.67	40.65%	―	198.46%	―

Shanghai Conant Optical Co. Ltd. Class H Corporate Events

Shanghai Conant Optical Expands on Share Unit Schemes

Shanghai Conant Optical Co., Ltd. has announced supplemental details regarding its Restricted Share Unit Schemes, which were adopted to incentivize and retain key contributors to the company’s growth. The schemes, initiated in December 2023 and January 2025, have not yet granted any Restricted Share Units as of the end of 2024, but have involved the purchase of 14,987,000 H Shares as incentives. The schemes are open to employees, directors, supervisors, senior management, and key operating team members, with no maximum entitlement for participants, and the Board retains discretion over the exercise and vesting periods.

The most recent analyst rating on (HK:2276) stock is a Hold with a HK$47.00 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.