Sunny Optical 2382

[winston]

Sunny Optical: Macquarie Sees Another 50% Upside

By Shuli Ren

According to Macquarie Research, Sunny Optical can hit 80 Hong Kong dollars a share in 12 months, or another 57% upside.

Mind you that Sunny Optical has already rallied 200% in the last year!

We raise our 2017/18 earnings by 27%/27% driven by all aspects of GPM (to 20.5% / 23.6% in 2017-18E) / OPM (to 14.1% / 17.7% in 2017-18E).

We expect the Street to raise earnings estimates, as we believe the current consensus GM at 17.6% / 18.1% for 2017-18E is too low given the business model is heading into high-margin handset lens and vehicle lens.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... 50-upside/

[winston]

not vested

SUNNY OPTICAL Jumps Over 8% to New High on Strong Feb Shipment

SUNNY OPTICAL (02382.HK), which is set to release its results next Monday (13 March) breached the peak at $55.5 today to hit the high at $56.2.

It finished the morning trade at $55.9, rebounding 8.3%, on increasing volume of 9.18 million shares.

Credit Suisse said that SUNNY OPTICAL February shipment saw a strong growth. The target price was revised up to $65.9 from $61.8, which is equivalent to roughly 25.5x P/E.

The rating was maintained at Outperform. In addition, UBS said that SUNNY OPTICAL plays a leading position in high-end dual lens market and the uptrend of the business should be able to sustain.

Hence, 2018 earnings forecast was lifted by 9.2% to factor in higher average price of products.

The target price was raised to $61.5 from $56 and the rating was maintained at Buy.

Source: AAStocks Financial News

[winston]

not vested

Smartphones lift Sunny

by Esther Yu

Sunny Optical Technology (2382) saw profit jump 67 percent to 1.27 billion yuan (HK$1.43 billion) due to growth in smartphone-related businesses.

The smartphone camera lens and vehicle mirror maker posted a 37 percent increase in revenue for 2016 to 14.61 billion yuan. Gross profit margin stood at 18.3 percent.

Increased sales and a rise in price of handset camera modules boosted revenue. A rise in sales of vehicle lens sets also helped.

A final dividend of 29 fen was declared, with a payout ratio of about 25 percent. The firm said it will continue to allocate resources to research and development to consolidate its position.

On the high-tech side, it said it will strive for breakthroughs in the emerging application fields.

Source: The Standard

[winston]

not vested

<Research Report>JPM Rates SUNNY OPTICAL (02382.HK) at Overweight with Target Lifted to $75

JPMorgan said in its report that SUNNY OPTICAL (02382.HK) handset lens shipments rose 86% yearly YTD, camera modules and car cameras were up 68% and 41% respectively, with the growth rate exceeding the annual shipments targets.

Thus, the research house lifted the group's 2017-19 EPS forecast by 7%-8% with target price raised to $75 from $70 and rating Overweight.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>M Stanley: SUNNY OPTICAL Apr Weak Shipments within Expectation; Kept Overweight

Morgan Stanley, in its report, said SUNNY OPTICAL (02382.HK)'s April shipment weakness reflected inventory digestion for Chinese OEMs, and the broker believed order pull-in has started to kick off in May and should continue in June, thanks to some OEMs preparing to launch flagship models.

Morgan Stanley said sustainability remains to be watched into 3Q, especially as Chinese OEMs have also largely increased smartphone pricing (to pass on component costs and increase profitability) and by then iPhone 8 should soon be launched.

According to the broker's observation, demand does not appear severely affected by higher ASP of smartphones so far.

For example, Huawei's P10 is sold above RMB4,000, but the broker found that it is on track to outsell P9.

As Sunny's volume and margin remain on track with the broker's expectations, Morgan Stanley kept rating Overweight with target price of $65.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Macquarie: SUNNY OPTICAL Apr Handset Lens Shipment Beats Estimates; Rated Outperform

Macquarie, in its report, said despite weak smartphone seasonality, SUNNY OPTICAL (02382.HK)'s April handset lens sets (HLS) shipments still beat estimates, surging 111% yearly.

The broker kept the earnings forecast unchanged, with target price of $80 and rating kept at Outperform.

The broker said the group's January-April HLS shipments were strong, shwing that the company is enhancing to high-margin handset lens, supporting the company's gross margin in the long run.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Citi: SUNNY OPTICAL (02382.HK) Apr Shipment for Handset Lens Rebounds; Rated Buy

Citigroup, in its report, said after looking at SUNNY OPTICAL (02382.HK)'s monthly shipment data for April 2017, the broker remained bullish on the swift growth momentum in handset lens sets (HLS) / vehicle lens sets (VLS), and handset camera module (HCM) outlook driven by dual-camera.

The broker maintained Buy with target price of $75.

In April 2017, SUNNY OPTICAL reported 9% monthly growth in HLS shipment, being the first monthly rebound since December 2016.

For the first four months of 2017, HLS shipment amounted to 168.7 million units (up 86% yearly), above management full-year guidance of 20%-30% growth as well as Citi estimate of 30% growth.

This outcome was attritable to a higher market share in HLS.

HLS shipment to Samsung remained stable and contributions from leading PRC customers continued to rise.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Deutsche Lifts SUNNY OPTICAL (02382.HK) Target to $67; Rated Buy

Deutsche Bank said in its report that AAC TECH (02382.HK)'s double-lens products helped the company win high-end customers, like Huawei.

The product portfolio improvement lifted the lens gross margin (expected to rise about 50% in the second half of 2017 or 2018.

The broker maintained the company at Buy with the target price raised from $60 to $67.

It also raised the group's profit forecast for this and next year by 6%-9%.

Source: AAStocks Financial News

[winston]

not vested

May 22, 2017

<Research Report>Macquarie Keeps SUNNY OPTICAL at Outperform with Target $80

Macquarie, in its report, expected the recent market volatility and street worries caused by AAC TECH (02018.HK)'s trading halt will last for a while.

The broker reiterated the rating Outperform on SUNNY OPTICAL (02382.HK) with street-highest target price of $80 given margin expansion (better product mix, pixel mix, and yield rate), share gains in the China home market and its low base in handset lenses, and business enhancement from the low-margin camera module business to the high-margin handset/vehicle lens businesses.

The broker expected the Street to raise gross profit margin assumptions.

Consensus on gross profit margin is 18.5%/19.0%/19.5% for 2017-19 while Sunny Optical already delivered 19.4% in 2H16.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>C Suisse: iPhone in Upgrade Cycle; Top Picks SUNNY OPTICAL, ASM PACIFIC

Credit Suisse said in its report that Apple is expected to launch a new generation of iPhone in September.

ASM PACIFIC (00522.HK) and SUNNY OPTICAL (02382.HK) can benefit from the cycle of dual-lens (and 3D sensing) led by Apple. As for acoustic field, the average price of AAC TECH (02018.HK) is expected to increase with the upgraded product key features.

The research house opined that despite iPhone entering into the upgrade cycle, it held cautious view on the related segment.

SUNNY OPTICAL and ASM PACIFIC remain the top picks of Credit Suisse with target prices of $71.2 and $154 respectively and ratings Outperform.

The research house believed that the investment sentiment of AAC TECH will be still affected by the short seller's report in short term, with the rating Neutral and target price of $98.4.

The share price of TONGDA GROUP (00698.HK), due to the rumors that Huawei and OPPO reduced orders the chairman cut stake, was subdued in near term, with the rating Neutral and target price of $2.5

Source: AAStocks Financial News