Sunny Optical 2382

[winston]

not vested

SUNNY OPTICAL (02382.HK) Jan Handset Lens Set Shipment Grows 36.1% YoY

SUNNY OPTICAL (02382.HK) announced that in January 2021, handset lens sets shipment grew 36.1% yearly to 148 million units; vehicle lens sets shipment rose 53.9% to 7.346 million units.

Related News: Daiwa Ramps up SUNNY OPTICAL TP to $256, Rated Buy; Taps into Apple’s Supply Chain This Yr

Source: AAStocks Financial News

[winston]

not vested

Sunny Optical (2382 HK)
Positive Trend On Shipment And Specs; More Upside Risks To Assumptions

After the robust shipments for both the smartphone market and Sunny Optical in Jan
21, we believe risks to our full-year 2021 shipment assumptions lie on the upside, due
to the “stay-at-work” abnormality during this year’s Chinese New year and a potentially
smaller-than-expected impact from a semiconductor shortage.

Smartphone camera upgrades are also on track with more exciting new launches coming in the next 2-3 months.

Raise target price to HK$275.00 based on a higher PE multiple. Maintain BUY.

Source: UOBKH

https://research.uobkayhian.com/content ... 047950ed15

[winston]

not vested

SUNNY OPTICAL(2382)

Analysis：

Sunny Optical`s main business covers mobile phone lens, vehicle lens and mobile phone camera module.

In the first half of 2021, global mobile phone sales performed well.

According to market data, smartphone shipments in the first and second quarters increased by 27% and 12% year-on-year, respectively.

Together with the increase in the proportion of 5G mobile phones, the company`s high-end Demand for products has also grown at the same time.

Recently, market news has come out that Apple`s new phones launched in September and it is predicted that all models of iPhone 13 will be equipped with LiDAR.

At the same time, Sunny Optical may also enter Apple`s supply chin and continue to expand its customers which will benefit the company in the long run development.

Strategy：
Buy-in Price: $221.5, Target Price: $245, Cut Loss Price: $200

Source: Phillips

[winston]

not vested

SUNNY OPTICAL(2382)


Analysis：
Sunny Optical announced the company's interim results as of 30 June 2021.

During the period, the revenue was approximately RMB 19.833 billion (+5.1% yoy).

The overall gross profit margin increased by 5.4 ppts yoy to 24.9% and the net profit attributable to the parent was approximately RMB 26.88 billion (+53.7% yoy).

The company's net profit matches the market expectations, mainly benefited from the efficiency improvement and cost down of production brought by manufacturing optimisation and automation level improvement.

The company's automotive-related product revenue reached approximately RMB 1.614 billion in 1H21, a significant increase of 72.38% yoy, the shipment volume increased by 82% yoy, continuing to maintain its position with no.1 market shares.

The company has raised its forecast for the shipment growth of VLS from 20%-25% to 30%-35%.

In addition, the Apple mobile phone will be released in mid-September, and Sunny Optical is expected to receive attention.

Strategy：
Buy-in Price: $214, Target Price: $240, Cut Loss Price: $200

Source: Phillips

[winston]

not vested

Sunny Optical (2382 HK)
Takeaways From Management Update

Sunny’s handset business remains unexciting in 2H21, but the negatives are well
expected.

Their automobile business is expected to remain robust despite the chip
shortage; the company faces limited risk regarding the power outage and supply chain
issues.

We trim 2021-22 earnings by 5% to factor in the sluggish handset shipment;

Sunny remains our top pick given its solid fundamentals and dominance in the vehicle
camera market.

Cut target price to HK$240.20. Maintain BUY.

Source: UOBKH

https://research.uobkayhian.com/content ... 2d6293e895

[winston]

not vested

Sunny Optical (2382 HK) - Margin pressure likely to be seen in 2022

Sunny Optical Technology’s (Sunny; 2382 HK) 2H21 revenue fell 8% year-on-year (YoY) to RMB17.7b, which came in 9% below consensus – we attribute this mainly to light end demand and average selling price (ASP) pressure.

Sunny has guided FY22 Handset Camera Modules (HCM)/handset lens/vehicle lens shipment growth to be 10-15%/5-10%/20-30% YoY, respectively.

Management expects margin pressure to continue in 2022 due to ASP pressure from handset camera specification (spec) downgrades, though an improvement is expected in 2H22.

On handset lens shipments, management expects growth to be supported by market share gain in two key overseas clients, smartphone demand recovery after the 1H22 inventory digestion, as well as greater high-end projects from 2H22.

On vehicle lens, management notes that it sees several new entrants in the market and noted that Sunny will allocate more resources to high-end solutions.

We continue to remain cautious on the demand headwinds and intensifying competition in the smartphone camera space.

We continue to assign an ESG premium of 10% in light of Sunny’s consistent improvement in ESG ratings, and also its favourable positioning on a number of key issues relative to industry peers.

Following adjustments to our estimates, and applying a target price-to-earnings (P/E) multiple of 20.8x (1 s.d. below the 5-year mean) on our FY22 earnings per share (EPS) estimate, our fair value (FV) drops from HKD205 to HKD131. HOLD.

Source: OCBC

[winston]

not vested

Citi Chops SUNNY OPTICAL (02382.HK) TP to $140 on Potential Profit-taking Pressure

SUNNY OPTICAL (02382.HK), which has been a top pick on the Android recovery trade since 4Q22, has rebounded 75% from its trough so far, Citigroup commented.

However, with the CNY shipment data in China being released, the market's optimism may weaken and the company may encounter profit-taking pressure.

The robust momentum of SUNNY OPTICAL appeared to have faltered after the CNY holidays and its shipment volume data in January is likely to remain lackluster.

Given that the deteriorating data trends could indicate short-term downside risk, the broker opened a 30-day negative Catalyst Watch on the stock in anticipation of weakening data post the holiday effect in coming weeks.

The target price for the stock was slashed from $160 to $140. Citigroup, nonetheless, emphasized that its long-term view on a cyclical recovery for SUNNY OPTICAL's fundamentals remains unchanged.

The rating for the stock was maintained at Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

not vested

Sunny Optical stares at 55pc drop in profit

Sunny Optical Technology (2382) warned that its net profit last year may plunge by up to 55 percent from the previous year.

The Apple supplier said it expects to record a profit of between 2.25 billion yuan (HK$2.6 billion) and 2.49 billion yuan in 2022, representing a decrease of approximately 50 to 55 percent as compared to its profit in 2021.

The sink can be attributed to the "resurgence of the pandemic, chip shortage, Russian-Ukrainian conflict, inflation and uncertainties in the global economy in 2022," the company said in a filing.

"The smartphone market experienced weak demand and the smartphone camera showed a trend of despecification, which resulted in a year-on-year decrease in 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."

The depreciation of the yuan last year led to an unrealized foreign exchange loss of 353.3 million yuan from its US$600 million (HK$4.71 billion) corporate bonds issued in January 2018 - though the loss was a non-cash item, Sunny said.

And global smartphone shipments suffered their worst quarterly drop on record last quarter - declining 18.3 percent to a little over 300 million units from a year earlier, according to data from the International Data Corporation. For the whole year, shipments fell 11.3 percent and marked the lowest total for a decade, it said.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... -in-profit

[winston]

Sunny Optical (2382 HK)
2022: Results In Line; Slow Recovery For Smartphone Business In 2023

Sunny Optical’s 2022 net profit dropped 52% yoy to Rmb2,408m, at the upper end of
profit warning.

Product mix was better than expected, thanks to higher contributions from AR/VR and vehicle products, and resilient HCM ASP.

As such, gross margin came in above our expectations and slightly below consensus expectation.

Going forward, management remains confident in the AR/VR and vehicle businesses, but is
conservative on the handset business.

Maintain BUY. Target price: HK$111.00.

Source: UOBKH

https://research.uobkayhian.com/content ... cd4fe7f4da

[winston]

not vested

SUNNY OPTICAL(2382)

Analysis：

SUNNY OPTICAL(2382.HK) is an integrated optical components and products manufacturer.

The group is principally engaged in the design, research and development, manufacture and sales of optical and optical-related products.

Such products include optical components (such as vehicle lens sets, optical parts of vehicle light detection and ranging, handset lens sets), optoelectronic products (such as vehicle modules and handset camera modules) and optical instruments (such as intelligent inspection equipment and microscopes).

Recently, the company announced the shipment volume of major products in May.

Among them, the shipment volume of handset lens sets amounted to 94471 thousand units, increasing 4 .3% YoY, and the shipment volume remained at a relatively high level in recent months.

The shipment volume of vehicles lens sets amounted to 7585 thousand units, increasing 25.7% YoY, which was mainly due to the increased demand from the vehicle camera market with the relief of the key components shortage in the auto supply chain.

Strategy：
Buy-in Price: $82.25, Target Price: $88.80, Cut Loss Price: $77.00

Source: Phillips