Sunny Optical 2382

[winston]

not vested

SUNNY OPTICAL Expects Interim NP to Drop Up to 70%

SUNNY OPTICAL (02382.HK) issued a profit warning, expecting that for the six months ended 30 June 2023, the profit attributable to owners of the company would amount to approximately RMB407 million to RMB475 million, which represents a YoY decrease of about 65% to 70%.

Dividend History
Announce Date Event Particular
2023/03/20 Final D:HKD 0.5000(equivalent to RMB 0.4390)
2022/08/15 Interim No Dividend
2022/03/22 Final D:RMB 0.9100(equivalent to HKD 1.1180)
2021/08/16 Interim No Dividend

The company attributed the decrease to factors such as the slow recovery of the Chinese economy and the uncertainties of the global economy during 1H23, continued weak global demand for the smartphone market, the intense industrial competition and the prolonged trend of de-specification of smartphone cameras, which resulted in the YoY decrease of the shipment volume of handset lens sets and handset camera modules of the group, with increasing pressure on average selling prices and gross profit margins.

Related News: Daiwa Reduces TP of SUNNY OPTICAL (02382.HK) to $95, Rates Buy

Meanwhile, the depreciation of RMB in 1H23 resulted in an unrealised foreign exchange loss amounting to approximately RMB161.5 million, stemming from the USD400 million sustainability-linked bonds issued by the Company on 17 January 2023 and long-term bank borrowings amounting to approximately USD277 million, which was a non-cash item.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... 279718/all

[winston]

not vested

Sunny's shares shine as shipments rise 17pc

Apple supplier Sunny Optical (2382) surged 12 percent after reporting a 17 percent year-on-year increase in the shipment of its handset lens sets for last month.

The company's share price concluded at HK$59.2 yesterday, representing a 12.23 percent increase from the closing price of the preceding trading day.

In September, Sunny Optical witnessed a 16.9 percent year-over-year surge in the shipment volume of handset lens sets, reaching 111.7 million units.

This increase was primarily attributed to a low base resulting from weak demand in the overall smartphone market during the same period last year.

Meanwhile, Nikkei Asia reported that Huawei has been stockpiling components for months with an aim to ship between 60 to 70 million smartphones in 2024.

Besides accumulating supplies such as lenses, cameras, printed circuit boards and other smartphone components throughout the year, Huawei reportedly requested Qualcomm to deliver its full-year chip order by June 2024, anticipating potential additional export controls by the US.

Huawei shipped only 30.5 million smartphones in 2022, ranking tenth globally according to IDC.

Source: The Standard

https://www.thestandard.com.hk/section- ... -rise-17pc

[winston]

not vested

Sunny Optical's net poised to halve

Apple supplier Sunny Optical Technology's (2382) net profit in 2023 expected to be half of the previous year's at approximately 1.1 to 1.2 billion yuan (HK$1.21 to 1.32 billion).

The net profit in 2022 was approximately 2.40 billion yuan.

The group said the annual decrease is due to the increasing pressure on average selling prices and gross profit margins of handset lens sets and handset camera modules.

The reduction was driven by the slow recovery of the Chinese economy, uncertainties of the global economy, continued weak global demand of the smartphone market, intense industrial competition and the prolonged trend of de-specification of smartphone cameras, the board added.

Source: The Standard

https://www.thestandard.com.hk/section- ... d-to-halve

[winston]

not vested

Sunny's handset shipments soar

Apple supplier Sunny Optical Technology (2382) said the shipment volume of its handset lens sets jumped 54.8 percent to 103 million units last month.

The announcement attributed the year-on-year increase in shipments of mobile phone lenses and mobile phone camera modules, mainly to a low base for the same period a year ago when demand was weak in the smartphone market overall.

It said vehicle lens shipments also increased by 31.2 percent year-on-year, mainly because of a rise in the sales of domestic new energy brand vehicles during the same.

Source: The Standard

https://www.thestandard.com.hk/section- ... ments-soar

[winston]

not vested

SUNNY OPTICAL(2382)

Analysis

In the past decade, Sunny Optical has seized the global wave of smartphones and leapt to become a world-class optical giant.

However, the global mobile phone market became saturated and competition intensified, putting pressure on the overall profitability of the Company.

As the demand for replacement devices continues to increase, the global smartphone shipment volume for the whole year of 2023 was 1.14 billion units, with a decline narrowing to 4%.

The decline has been continuously narrowing, and in the fourth quarter, it increased by 8% yoy, showing a strong signal of stabilization and recovery.

The yoy growth rate of Sunny Optical 's mobile phone lens and module product shipments has turned positive at 2H23, and 2024 will be a turning point for the Company's performance to return to growth.

In addition, the application of AI on mobile devices will bring revolutionary impact and create new markets.

Strategy：
Buy Price : HK$49; Target Price : HK$60 ; Stop Loss : HK$ 43

Source: Phillips

[winston]

not vested

HSBC Global Research Downgrades SUNNY OPTICAL (02382.HK) to Hold, Axes TP to $41.4

HSBC Global Research cited SUNNY OPTICAL (02382.HK) 's net profit of RMB663 million in 2H23, at the lower end of its earlier profit warning range, down 37% YoY and 29% below the broker's expectations.

The broker admitted that underestimated market competition and overestimated recovery of demand in the optical industry worsened gross profit margins (GPMs) for smartphone lens and camera modules in 2H23.

The management expected the two divisions delivery growth of 5% and flat this year, and GPM guidance of 20% and 5% respectively.

Related News: CMBI Trims SUNNY OPTICAL TP to $47.31; Forecasts Reset on Conservative Guidance

The broker also downgraded the stock from Buy to Hold and axed its target price from $89.7 to $41.4.

Source: AAStocks Financial News

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