Sunny Optical 2382

[winston]

not vested

<Research>G Sachs Lowers SUNNY OPTICAL (02382.HK) TP to $60; Smartphone Mkt Competition Still Strong

Goldman Sachs noted in a report that SUNNY OPTICAL (02382.HK) has exceeded its expectations for shipments of handset lenses, camera modules, and vehicle lenses during the first 5 months of 2024, according to the company's operational data.

The broker is optimistic about the future growth of shipments, which is expected to reflect recovering market demand from a low base.

However, Goldman also pointed out that the smartphone market remained highly competitive. The broker therefore stayed cautious as competition may continue to slow down the pace of average selling price and gross margin recovery.

With the completion of product portfolio upgrades and the continuation of competition, SUNNY's gross margin is now expected to remain at 17-18% from 2024 to 2026, an improvement from last year's roughly 15%, but still lower than the 20-23% level from 2019 to 2022.

Related News: HSBC Research Raises SUNNY OPTICAL (02382.HK) TP to $45.3, Rating Hold

Goldman Sachs maintains a Neutral rating on SUNNY and trimmed its target price from $65 to $60.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research>BofAS Upgrades SUNNY OPTICAL (02382.HK) to Buy, Hikes TP to $67

BofA Securities upgraded the rating on SUNNY OPTICAL (02382.HK) to Buy from Neutral in a recent report, citing the recovery of its profit margins driven by upgraded specifications of flagship models and improvement in its product portfolio.

With the industry trend improving, the broker expected the company's earnings to recover and continue to grow this year, with a compound annual growth rate of 25% from 2024 to 2026.

BofAS raised its 2024-26 earnings forecast for SUNNY by 20-27% to reflect the improved margins.

The broker also hiked its target price from $51 to $67 after the valuation basis increase, now equivalent to 25x 2025 P/E, which is close to the historical trading average and in line with the cyclic rise in 2019-20.

Near-term catalysts include potential earnings beat and 1H24 results announcement.

Related News - Citi: SUNNY OPTICAL (02382.HK) Mgmt Envisages High-end Handset Product Shrs to Hike Further

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Sunny Optical sees profit rising by 150pc

by Nancy Li

Apple supplier Sunny Optical Technology (2382) yesterday said its net profit for the first half of 2024 is expected to increase by 140 percent to 150 percent to between 1.04 billion yuan (HK$1.12 billion) and 1.09 billion year-on-year.

The expected increase was primarily attributable to the recovery of the smartphone market, while the improvement in product mix also led to a year-on year increase in shipments of handset lens sets and handset camera modules, with increasing average selling prices and improving gross margins, it said in a profit alert.

Sunny Optical's main products include mobile phone lenses, automotive lenses, high-pixel lens lights, camera modules and others. The firm also makes smartphone parts for Chinese brands including Huawei, Oppo and Vivo.

The interim results will be released next month.

Source: The Standard

https://www.thestandard.com.hk/section- ... g-by-150pc

[winston]

not vested

<Research>Macquarie Elevates SUNNY OPTICAL (02382.HK) TP to $79.2, Expects Continued Margin Recovery in 2H24 & 2025

Macquarie highlighted in a report that SUNNY OPTICAL (02382.HK) issued a positive profit alert, expecting 1H24 net profit to grow 1.4x to 1.5x YoY, reflecting that the company's gross margins are starting to recover.

The company reduced its production of handset camera modules by 10% YoY in 2Q24 to focus on higher-margin high-end projects.

The broker expected the company's handset camera module margin to increase from 2-3% in 1H23 to 7-8% in 1H24, with double-digit growth in the average selling price of its products.

In terms of SUNNY's handset lenses, Macquarie forecasted its gross profit margin to increase from about 14% in 1H23 to about 24% in 1H24, mainly due to the improvement of the Android portfolio and the increase in the iPhone's sales share, and it is expected that gross profit margin will further improve in 2H24.

Related News: UBS: SUNNY OPTICAL Positive Profit Report Beats, Positive Shr Price Reaction Expected

Macquarie predicted smartphones this year to see AI features and camera upgrades that will attract users to switch to new products, which may drive SUNNY's continued margin recovery in 2H24 and next year.

The company is the broker's top pick in the smartphone chain.

Macquarie reiterated its Outperform rating on SUNNY, considered its valuation attractive, and raised its target price from $65 to $79.2.

It also lifted the company's profit forecasts for 2024/25/26 by 44%, 24% and 18%.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

Broker│Opinion

BofA Securities│Interim operating profit beats, mobile phone and mixed reality sales expanding steadily

Goldman Sachs│Gross margins of handset and vehicle lens sets recover from low base.

Citi│Interim revenue and gross margins beat, benefiting from favourable sales mix

CLSA│Gross margins improve strongly

Morgan Stanley│Strong growth in 1H24, further growth depending on continued recovery in 2H24

Jefferies│Revenue and gross margins recovery on track

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Stronger HLS and HCM shipments in 4Q24F

Sunny’s HLS/HCM/VLS shipments in Jan-Sep 2024 accounted for 77%/72%/76% of its FY24 shipment guidance.

We are positive on Sunny’s HLS and HCM shipments growth in 4Q24F due to stronger iPhone 16 sales and new model debuts by Chinese OEMs.

Reiterate Add. Our TP of HK$72.0 is based on 20x FY25F P/E.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... C334AD2EEA

[winston]

not vested

<Research>BOCI Hikes SUNNY OPTICAL TP to $77, Projects XR Products to Prompt Key Re-rating from Mid-2025

2024/12/19

BOCI said in a report that SUNNY OPTICAL was expected to benefit from a revived smartphone camera upgrade cycle led by domestic OEMs, the increase in market share of US customers, and the intensifying competition in the domestic NOA (Navigate on Autopilot) market.

Paying attention to XR, the broker believed that starting from mid-2025, when investors see more AR glasses rushing into the market, it may become a key driver of re-rating.

The broker decided to raise SUNNY OPTICAL's EPS forecast for 2024-26 by 4-6%, lift the target price from $69 to $77, and maintain the Buy rating.

Related News: CICC: Enhanced and Expanded Trade-in Program May Markedly Boost CN Total Retail Sales This Yr

Observing the recent participation in roadshows, the broker noticed that investors were generally concerned about domestic fiscal stimulus in the field of consumer electronics, camera upgrades, and growth in US customer share, including BYD COMPANY (01211.HK) accelerating autonomous driving by upgrading automotive cameras, especially XR.

SUNNY OPTICAL's AR artificial glasses development company was projected to be on the path to recovery.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

<Research>Daiwa Elevates SUNNY OPTICAL (02382.HK) TP to $80 as Smartphone Subsidies To Be Another Catalyst in 2025

2024/12/16

SUNNY OPTICAL (02382.HK) 's November shipment data suggests that its full-year handset lens shipments may be higher than its previous guidance target, while shipments of handset camera modules may miss its target on product mix optimization, Daiwa released a research report saying.

Daiwa reiterated rating at Buy on SUNNY OPTICAL, and elevated its target price from $60 to $80, believing that the demand for smartphones will recover in 2025.

The possible introduction of a smartphone subsidy policy in the future will be another catalyst.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

<Research>M Stanley: SUNNY OPTICAL (02382.HK) Nov CCM Shipments Still Soft, But ASP Increase Crucial for Profit Recovery

2024/12/09

Morgan Stanley wrote in its research report that SUNNY OPTICAL (02382.HK) recently announced its operating data for November 2024, showing that the shipment performance of camera modules (CCM) and handset CCM remained weak and plunged over 28% YoY, respectively.

The company explained that this was due to a focus on mid-to-high-end projects during the period and an enormous improvement in product structure compared to the same period last year.

As the increase in average selling price (ASP) is crucial for profit recovery, the broker believed that adjusting the product mix will remain SUNNY OPTICAL's top priority, and that ASP and overall profit margins will gradually pick up.

The broker gave SUNNY OPTICAL an Overweight rating with a target price of $72.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

<Research>CICC Lifts SUNNY OPTICAL (02382.HK) TP to $70.4 in Favor of Handset Optics Innovation & Upgrade

2024/12/09

SUNNY OPTICAL (02382.HK) announced its shipment data in November, CICC released a research report saying.

The Company shipped 37.406 million handset camera modules, down 28.1% YoY and up 10.7% MoM, mainly due to the Company's focus on middle-and-high-end items, resulting in a YoY decline in shipments and significant improvement in product mix.

CICC was optimistic about the gross profit margin incline brought by the upgraded product mix of SUNNY OPTICAL, and raised its 2024-2025 net profit forecasts by 5%/ 15% to RMB2.603 billion/ RMB3.308 billion each, with rating kept at Outperform.

Considering that the innovation and upgrade of mobile phone optics is expected to continue to bring stronger growth momentum to the Company, CICC lifted its target price by 11% to $70.4.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news