If Apple makes a foldable phone, analysts say this stock will benefit
Even if Apple’s long-awaited foldable may still be months or years away, buyers are lining up for a potential major supplier: Chinese glass maker Lens Technology . It’s “one of the key beneficiaries of [the] foldable iOS smartphone supply chain,” Citi analysts led by Kyna Wong said in a July 14 report about Lens Tech. They estimate the device could contribute to 5% of the Chinese company’s revenue next year, and 12% in 2027. In a report last week, reputable Apple analyst Ming-Chi Kuo kept up expectations that the iPhone maker will begin making a foldable next year. Apple has not made any announcements, and did not immediately respond to a request for comment on whether Lens Tech would provide the “ultra thin glass” that covers the phone display panel. The Citi report initiated coverage of Lens Tech after its stand out Hong Kong public offering on July 9 — raising 4.77 billion HKD ($610 million) on the exchange’s busiest day ever for listings — five IPOs at once. Bank of America Securities was one of the underwriters. The Citi analysts rate Lens Tech a buy, with a price target of 26 HKD ($3.13), or nearly 25% upside from Friday’s close. “We believe the H-share listing is positive for the company,” the analysts said, “as it should provide more cash for potential R & D initiatives and overseas capacity expansion, and expand the overseas institutional investor base.” U.S. hedge fund magnate Steve Cohen has jumped in, with multiple purchases over three days that brought his stake in Lens Tech to 8.41% of issued voting shares, according to filings with the Hong Kong stock exchange. About 30% of proceeds raised from the Hong Kong offering will go towards developing foldable screens, Lens Tech said in its prospectus. “By increasing our production capacity in China, we aim to ensure robust support for the mass production of middle and high-end foldable smartphones for our customers and improve our market share in foldable screens,” the company said. Lens Tech did not name Apple, but disclosed that its largest customer has been a Nasdaq-listed U.S. multinational founded in 1976 — and said the business relationship started “almost two decades ago when Customer/Supplier A was developing the industry’s first touch-enabled smartphone with full-sized screen.” Lens Tech’s latest listing follows a trend this year of more mainland Chinese companies going public in Hong Kong, which is easier for international investors to access. The company already trades on the Shenzhen Exchange. “We expect Lens to benefit from the foldable iPhone launch [and] AI glasses & robotics” that drive earnings growth of at least 20% a year in 2026 and 2027, UBS analyst Zoe Xu and a team said in a separate July 14 report. They resumed coverage of the mainland China-traded shares with a buy rating and a new price target of 26.20 yuan, up from 16 yuan previously. The Citi analysts also raised their price target on Lens Tech’s mainland-traded shares to 32 yuan ($4.45) from 25 yuan. Lens Tech has been reducing its reliance on Apple revenue, and states in its prospectus that “Customer B” is a “Nasdaq-listed American company founded in 2003 that designs and sells smart vehicles.” Other listed customers include South Korean, French and Chinese companies. The UBS analysts pointed out that Lens Tech shares remain depressed after a 30% tumble in the week following U.S. “Liberation Day” tariffs in early April. But they expect the company can benefit from selling to Chinese startups such as smart glasses company Rokid and Zhiyuan Robotics. And even without a potential foldable iPhone, Lens Tech can likely benefit from selling cover glass for this year’s iPhone 17 which is expected to offer a slimmer design. Lens Tech noted in its prospectus that its direct exports to the U.S. are limited and that it plans to use Hong Kong listing proceeds to expand production overseas in Vietnam and Thailand. In addition to China, the company said it already has factories in Vietnam and Mexico. — CNBC’s Michael Bloom contributed to this report.
