Sunny Optical 2382

Sunny Optical 2382

Postby winston » Tue Jun 21, 2016 11:42 am

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Sunny Optical: Plenty Of Drivers, Analysts Go Bullish

By Shuli Ren

In a world that has little growth, Hong Kong-listed camera and auto lens manufacturer Sunny Optical (2382.Hong Kong) is getting a lot of attention lately, not the least because this stock has already soared 43.4% this year.

This blogger saw bullish reports from Nomura Securities and Macquarie Research this morning.

More notable is that Deutsche Bank also joined the club, starting its coverage of Sunny Optical, with a bullish view and 32 Hong Kong dollars price target.

Sunny gained 1.4% this morning to HK$25.65.

Two distinct new tends should push both earnings and valuation higher for Sunny Optical.

First is the adoption of dual-camera modules for high end smartphones, boosting both volume and pricing, where Sunny already holds a top two ranking.

The second is the proliferation of cameras in the auto sector where it is the largest supplier, with a projected 30% market share in a 40% margin product, growing at 30% pa.

This combination should raise earnings 50% this year followed by close to 20% annually until 2018.

We note the company has strong free cash flow and a large net cash position.


Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... o-bullish/
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Re: Sunny Optical 2382

Postby winston » Tue Jun 21, 2016 11:44 am

June 15, 2016

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<Research Report>JP Morgan: Recent Concerns on Huawei Order Cut Overblown; Reiterates SUNNY OPTICAL at Overweight


SUNNY OPTICAL (02382.HK)'s share price has recently fallen by 12% from the peak level due to market concerns that Huawei, the company's biggest customer, has lowered its orders.

JP Morgan believes that the impacts are over-exaggerated. SUNNY OPTICAL also echoed the view of the broker, saying that good growth momentum is seen.

The research house sees robust 2H16 orders from Huawei with the notion that Huawei 3Q typically would record a quarter-on-quarter decline as a result to seasonality/ product cycle.

The rating was reiterated at Overweight, with a target price of $29.

Source: AAStocks Financial News
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Re: Sunny Optical 2382

Postby winston » Tue Jun 21, 2016 11:45 am

June 14, 2016

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<Research Report>BofAML Downgrades SUNNY OPTICAL to Underperform with Target Lifted to $25

Bank of America Merrill Lynch, in its report, downgrades SUNNY OPTICAL (02382.HK) to Underperform with target lifted to $25.

The broker lowered its 2016/17 earnings estimates on slower year-to-date shipments despite higher dual-camera contribution.

The broker recognized the company?s margin expansion story is driven by growing handset/vehicle lens shipments. However, the stock has rallied 56% year-to-date and now trades at 22x/18x 2016/17E EPS, well above its peak cycle valuation.

Optimism for strong growth in the next two years appears to be in the price, and weaker-than-expected year-to-date shipment could be a near-term risk.

Source: AAStocks Financial News
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Re: Sunny Optical 2382

Postby winston » Tue Jun 21, 2016 11:46 am

June 7, 2016

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JPM Lifts SUNNY OPTICAL (02382.HK) Target to $29; Rated Overweight


JP Morgan, in its report said that, the shares in SUNNY OPTICAL (02382.HK) outperformed the Hang Seng Index by 54% YTD.

The broker updated the model to reflect YTD monthly shipment trend, including the downward adjustment in shipment forecasts for handset lens and CCM shipment by 23% and 12% from that of 32% and 20%.

The target price was raised to $29 from $27, which is equivalent to 16x 2017 P/E. The rating was Overweight.

Source: AAStocks Financial News
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Re: Sunny Optical 2382

Postby winston » Wed Jun 22, 2016 9:19 am

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High-visibility growth

We are impressed by Sunny’s modern and highly automated production facilities.

Management believes it can achieve sustainable revenue growth in the smartphone and “Internet of things” (IoT) segments, driven by continued innovative product rollouts.

The handset lens set and vehicle lens set segments should lead the earnings growth.

We lift FY17-18F EPS by 2% to reflect faster megapixel migration in the HLS segment.

We reiterate our Add recommendation with a higher target price of HK$29.0, based on a FY17F P/E of 18.5x.

Source: CIMB

https://brokingrfs.cimb.com/n1kLVp4DfX4 ... Jvw_A2.pdf
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Re: Sunny Optical 2382

Postby winston » Wed Jul 06, 2016 1:08 pm

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June 21, 2016

<Research Report>Deutsche Initiates SUNNY OPTICAL at Buy; Dual Drivers Push Up Profit

Deutsche Bank, in its report, initiated SUNNY OPTICAL (02382.HK) at Buy with a target price of $32.

Two distinct new trends are expected to push both earnings and valuation higher for Sunny Optical.

First, the adoption of dual-camera modules for high end smartphones boost both volume and pricing.

The second is the proliferation of cameras in the auto sector where it is the largest supplier, with a projected 30% market share in a 40% margin product, growing at 30% per year.

This combination should raise earnings 50% this year followed by close to 20% annually until 2018.

Deutsche Bank noted that the company has strong free cash flow and a large net cash position, giving it 20% upside potential.

Source: AAStocks Financial News
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Re: Sunny Optical 2382

Postby winston » Mon Jul 25, 2016 10:18 am

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July 20, 2016

<Research Report>JPM Lifts SUNNY OPTICAL (02382.HK) Target to $33; Rated Overweight

JPMorgan, in its report, said SUNNY OPTICAL (02382.HK)'s share price is up 60% year-to-date relative to HSI.

The broker continued to retain a high-conviction Overweight rating on the company's earnings growth potential.

To reflect 1H16 actual shipments, the broker forecasted that handset lens/automotive lens/camera module shipment yearly growth in 1H16 to be 22%/44%/11% yearly growth in 2016, as compared to the company?s guidance of 20-30%/30-40%/15-20% growth respectively.

The broker maintained the 2016-18 earnings forecast, with target price lifted from $29 to $33 to reflect a higher P/E ratio in the sector.

Source; AAStocks Financial News
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Re: Sunny Optical 2382

Postby winston » Tue Jul 26, 2016 8:53 am

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Macquarie Lifts SUNNY OPTICAL (02382.HK) Target to $50; Rated Outperform

2016/07/25

Macquarie, in its report, lifted the 2017 earnings forecast of SUNNY OPTICAL (02382.HK) 0.000 (0.000%) Short selling $29.07M; Ratio 14.439% by 15%, owing to improving Handset Lens GPM to 40.3% in 2017; growing handset lens shipments from 27% in 2016 to 31%/39% yearly in 2017/18; and better operational efficiency.

The broker lifted the target price from $32 to $50, with rating Outperform.

The broker did not expect the upcoming 1H16 results to be a surprising one, due to a slow seasonality factor and higher mix of CCM in 1H drag the margin expansion, dragging the growth of GPM.

Source: AAStocks Financial News
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Re: Sunny Optical 2382

Postby winston » Thu Sep 01, 2016 11:48 am

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Who Has The Upper Hand: Largan Precision Or Sunny Optical?

By Shuli Ren

Taiwan’s Largan Precision (3008.Taiwan) and Hong Kong-listed Sunny Optical (2382.Hong Kong) are competitors in smartphone manufacturing, vying for businesses from Apple (AAPL) and Samsung Electronics (SSNLF).

Both have done very well this year. Largan is up 59.6% while Sunny has soared 134.9%.

But between the two of them, which one should investors pick?

While liking both, Citi Research‘s Arthur Lai prefers Largan because it can benefit the most from Apple’s iPhone 7 upgrade cycle starting this fall.

First of all, Largan is cheaper. It trades at 14 times the bank’s 2017 earnings estimate while offering 41% earnings per share growth. Meanwhile, Sunny Optical trades at 24 times 2017 earnings on similar growth rate.

Second, Largan is more leveraged towards the smartphone lens business, while Sunny has a larger exposure to vehicle lenses. Largan gets 95% of its sales from the shipment of smartphone lenses and only 2% for vehicles. Meanwhile, Sunny’s lens business comprises only 22% of its total revenue, and of that 22%, 38% comes from smartphone lens shipments and 36% from vehicle lenses.

And since Citi thinks the dual camera lens business can see a more immediate earnings lift than the smart cars, Largan is a much better pure-play.

In addition, Largan is ahead in technology. Lai wrote:

We believe Largan is the winner in the smartphone lens market; Sunny Optical still lags Largan by ~1 year in terms of technology.

Better products enable Largan to enjoy pricing premiums. Largan’s capacity is about 4x bigger than SO’s. Moreover, Largan’s higher level of automation brings a better margin and capacity scalability.

As such, Citi believes Largan will grow its gross margin from 57% in 2015 to 67% in 2016. Meanwhile, the lens division at Sunny Optical can only expand its gross margin from 35% in 2015 to 40% in 2016.

Largan rose 4.2% this morning. Sunny is little changed.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... y-optical/
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Re: Sunny Optical 2382

Postby winston » Fri Nov 11, 2016 10:40 am

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Dual-camera demand drives its two divisions

Sunny will be the key beneficiary of huge dual-camera demand from Chinese brands due to its lens set and module production capabilities, in our view.

Dual-camera lens sets shipments drove record-high HLS output in Oct 2016.

We upgrade Sunny to Add and raise our target price (TP) to HK$41.70, based on 24x FY17 P/E (upcycle valuation) due to favourable environment for the industry.

Source: CIMB

https://brokingrfs.cimb.com/ZpkFT0vvKol ... oJ9Fg2.pdf
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