Lens Technology exceeded market expectations in the first quarter of 2025, posting revenue of CNY17.063 billion (US$2.34 billion), a 10.1% increase compared to the same period last year. Net profit attributable to shareholders surged 38.71% to CNY429 million.
According to Lens Technology's filing via Sina Finance and Cninfo, the company reported stronger profitability metrics, with gross margin rising to 12.8%—up 2.24% year-over-year—while net margin improved to 2.66%, reflecting a 30.59% increase.
Total operating expenses—including selling, administrative, and finance costs—declined to CNY733 million, accounting for just 4.3% of revenue. The expense ratio dropped 22.88% compared to the same period last year, underscoring tighter cost discipline.
Financial metrics improve; Receivables raise caution
Net assets per share rose to CNY9.85, up 5.19% year-over-year. Operating cash flow per share grew 29.6% to CNY0.53, while earnings per share climbed 39.23% to CNY0.09.
According to Stockstar.com, Lens Technology recorded a 6.1% return on invested capital (ROIC) in 2024, indicating moderate capital efficiency. The company's full-year net margin stood at 5.26%, pointing to mid-tier value generation across its offerings.
Since its initial public offering, Lens Technology has raised a total of CNY19.717 billion and paid out CNY7.507 billion in dividends, yielding a dividend-to-financing ratio of 0.38, leaving headroom for enhanced shareholder returns.
Still, rising accounts receivable remain a concern, reaching 241.91% of net profit, a potential strain on cash flow and collection efficiency.
Analysts bullish on 2025 outlook as top fund managers increase exposure
Sell-side analysts project Lens Technology's 2025 net profit to reach CNY5.265 billion, with average earnings per share estimates landing at CNY1.06.
Institutional confidence is high. Lens Technology is a core holding in the Xingquan Herun Hybrid Securities Investment Fund (LOF), overseen by top-ranked fund manager Xie Zhiyu. With assets under management totaling CNY22.87 billion, Xie, ranked among Stockstar.com's top 10 public fund managers in 2024, is known for his fundamentals-first strategy and focus on value and growth stocks.
Lens Technology 1Q25 financial summary | |||
Item | 1Q24 | 1Q25 | YoY change |
Total revenue (CNYb) | 15.498 | 17.063 | 10.10% |
Net profit attributable to shareholders (CNYb) | 0.309 | 0.429 | 38.71% |
Net profit excl. non-recurring items (CNYb) | 0.235 | 0.378 | 60.99% |
Monetary funds (CNYb) | 9.85 | 9.9.65 | 1.16% |
Accounts receivable (CNYb) | 7.828 | 8.767 | 11.99% |
Interest-bearing liabilities (CNYb) | 14.92 | 13.862 | -7.09% |
Gross margin | 12.52% | 12.80% | 2.24% |
Net margin | 2.04% | 2.66% | 30.59% |
Operating expenses as % of revenue | 5.57% | 4.30% | -22.88% |
Net assets per share (CNY) | 9.37 | 9.85 | 5.19% |
Earnings per share (CNY) | 0.06 | 0.09 | 39.23% |
Operating cash flow per share (CNY) | 0.41 | 0.53 | 29.60% |
Source: Lens Technology, Sina, Cninfo, compiled by DIGITIMES, April 2025
Article edited by Jerry Chen
