Zhao Yin International: Expects the hot trend of AI glasses to benefit the technology supply chain, recommends buying XIAOMI-W (01810) and others.

China Merchants International released a research report stating that it continues to be optimistic about the vigorous development of the AI eyewear industry. It believes that the strong growth of Ray-Ban Meta eyewear in the first half of the year, Xiaomi's target shipment of 500,000 units of AI eyewear, various brands' rich product pipeline, and the continuous expansion of ecosystems and artificial intelligence functions and application scenarios will pave the way for the growth of the related supply chain in the second half of this year. According to industry data, it is expected that the global and Chinese smart eyewear markets will achieve year-on-year growth rates of 43% and 1.21 times respectively this year. With more tech companies entering the AI eyewear market, cost optimization and the expansion of generative AI application scenarios will continue to drive demand in the coming years, benefiting the tech supply chain. Among them, major tech brands such as XIAOMI-W (01810) have a target price of HK$65.91; optical component manufacturers like Q TECH (01478) have a target price of HK$13.21; and speaker and microphone parts company AAC TECH (02018) have a target price of HK$63.54. All of them are rated as "buy".