Luna Ultra strengthens Insta360's premium imaging product portfolio with dual lenses, three AI chips, and broader use cases

Overview

The report focuses on Insta360's new Luna Ultra gimbal camera, analyzing how dual lenses, three AI chips, intelligent tracking, and AI editing improve the professional shooting experience and broaden use cases. Goldman Sachs believes the new product further supports the company's premium brand image and long-term growth thesis, assigning a Buy rating and a 12-month target price of Rmb311.

Core views

Insta360 launched the Luna Ultra gimbal camera in June 2026, priced at Rmb4,705 or US$700. Goldman Sachs characterizes the new product's core positioning as providing ordinary users with a more professional-grade imaging experience through stronger AI computing power, higher-specification lenses, and more stable sensing and gimbal systems, while lowering the barrier to use. The report believes this product upgrade could unlock more shooting use cases and creative demand, rather than merely improving individual hardware specifications. In terms of the imaging system, Luna Ultra uses a dual-lens configuration. The flagship Leica Summicron lens is equipped with a 1-inch 8K sensor and an F1.8 aperture, providing 14 stops of dynamic range and supporting deep contrast, vivid colors, and detailed rendering in 8K Dolby Vision to meet the needs of vlog users. The professional telephoto lens features an F2.0 aperture and supports up to 12x zoom, covering different focal lengths and enabling smooth zooming; three-axis gimbal stabilization is used to improve shooting stability. Goldman Sachs' logic is that the combination of primary-camera image quality, telephoto coverage, and mechanical stabilization allows a single device to adapt to more shooting distances and environments. AI capability is another major theme emphasized in the report. The new product is equipped with three AI chips, including two dedicated imaging chips, to enhance night photography and low-light portrait performance; DeepTrack 5.0 is used to continuously track and focus on subjects. The report believes stronger low-light processing and reliable subject tracking can reduce the user's operational burden under complex lighting conditions and during moving shots, making professional results easier to achieve. The Insta360 app also provides AI automatic editing, which can automatically select better clips and generate shareable finished videos, extending from shooting to post-production and improving content creation efficiency. Regarding use cases, the report lists daily vlogging, landscape photography, and portrait photography, while particularly emphasizing three types of creative features: 360 Panorama records complete scenes; Barrel Roll rotates the image by 180 degrees to create a dynamic, rotating first-person perspective; and Timelapse and Timeshift compress time through templates featuring architecture, cities, automobiles, and other subjects. Goldman Sachs believes the combination of hardware upgrades with template-based and AI-powered software tools can expand the range of end-user applications and unlock creative demand. At the company level, Goldman Sachs remains optimistic about Insta360's leading position in the 360-degree camera and action camera markets. The report attributes long-term growth drivers to its premium brand image, product upgrades that continuously improve the user experience, expansion of product categories, and a broad accessory offering. The significance of the new product therefore lies not only in updating the gimbal camera but also in strengthening the product portfolio spanning core imaging devices, accessories, and software experiences. In terms of valuation, the report provides a 12-month target price of Rmb311, based on 20x 2030E P/E and discounted back to 2027E using a 13.5% cost of equity. The target multiple is derived from the PEG&M correlation of consumer electronics peers, specifically incorporating 2026E P/E, 2027E net profit year-on-year growth, and operating margin. The report also lists a price benchmark of Rmb121.17 but does not explicitly provide the expected upside percentage. The main downside risks are more intense market competition than expected, slower-than-expected shipment growth for action cameras and 360-degree cameras, and a lower-than-expected accessory attach rate.

Analysis framework

The report first reviews the new product's launch date, pricing, and positioning, then analyzes specification upgrades item by item across the primary lens, telephoto lens, gimbal stabilization, AI computing power, subject tracking, and AI editing. It subsequently maps these capabilities to use cases such as low-light shooting, portrait photography, vlogging, panoramic photography, and time-lapse photography, and extrapolates from the improved user experience to the brand, product expansion, and long-term growth thesis. Finally, it determines the target multiple based on the relationship among the P/E ratios, net profit growth, and operating margins of consumer electronics peers, and discounts it using the cost of equity to derive the target price.

Methodology notes

• Valuation methodP/E and PEG valuation

  Forward P/E valuation based on the PEG&M correlation of consumer electronics peers

  The report refers to the relationship among the 2026E P/E ratios, 2027E net profit year-on-year growth, and operating margins of consumer electronics peers to select a 20x 2030E P/E multiple for Insta360, then discounts it back to 2027E using a 13.5% cost of equity to derive a 12-month target price of Rmb311.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Insta360 (688775.SS)

  Upgrades to Luna Ultra's specifications and AI experience strengthen the company's product portfolio in imaging devices and support its premium brand and long-term growth thesis.

  Strengths

  A leading position in 360-degree cameras and action cameras; the new product features dual lenses, three AI chips, low-light enhancement, subject tracking, three-axis stabilization, and AI editing capabilities.

  Weaknesses

  Growth performance is relatively sensitive to the shipment growth rates of action cameras and 360-degree cameras and to the accessory attach rate.

  Comparison

  The target valuation multiple is determined through the correlation among the 2026E P/E ratios, 2027E net profit year-on-year growth, and operating margins of consumer electronics peers.

  Risks

  More intense market competition than expected, weaker-than-expected shipment growth for action cameras and 360-degree cameras, and a lower-than-expected accessory attach rate.

Key data

• New product launch dateJun 2026Launch date of the Luna Ultra gimbal camera
• New product pricingRmb4,705, or US$700Launch price of Luna Ultra
• Flagship primary lens1’’ 8K sensor; F1.8 apertureLeica Summicron lens specifications
• Dynamic range14 stopsUsed to enhance contrast, color, and detail rendering
• Telephoto lensF2.0 aperture; up to 12x zoomSupports different focal lengths and smooth zooming
• Stabilization systemThree-axis gimbal stabilizationUsed to improve shooting stability
• AI chips3Includes 2 dedicated imaging chips, focused on enhancing low-light performance
• AI tracking technologyDeepTrack 5.0Used for subject tracking and focusing
• Rotational shooting angle180 degreesBarrel Roll dynamic rotational shooting feature
• 12-month target priceRmb311Based on 20x 2030E P/E and discounted back to 2027E
• Target valuation multiple20x 2030E P/EBased on the PEG&M correlation of consumer electronics peers
• Cost of equity13.5%Used to discount the 2030E valuation back to 2027E
• Historical target price record08-Feb-26: Rmb311.00; closing price Rmb223.37Figures in the target price history table, not adjusted for corporate actions

Impact & implications

Goldman Sachs believes Luna Ultra integrates high-specification dual lenses, low-light AI processing, subject tracking, three-axis stabilization, and automatic editing into a single product, helping lower the barrier to professional imaging creation and expand use cases across daily vlogging, landscape photography, portrait photography, and creative shooting. The report views this experiential upgrade as a supporting factor for Insta360 to strengthen its premium brand, expand its product and accessory portfolio, and drive long-term growth.

Risks

• Market competition may be more intense than expected.
• Shipment growth for action cameras and 360-degree cameras may be slower than expected.
• The accessory attach rate may be lower than expected.