CICC International: Lowered target price of SUNNY OPTICAL (02382) to 98 Hong Kong dollars while maintaining "outperform" rating.

Industrial Bank International released a research report stating that SUNNY OPTICAL (02382) will see a 12% year-on-year growth in revenue in the second half of the 2024 fiscal year, in line with market expectations. The main driving factors are the mobile phone camera and car-mounted camera modules. Operating profit is expected to increase by 23%, with an operating profit margin of 6.5%, in line with the company's profit forecast. Net profit is projected to increase by 145% year-on-year, or 50% in the first half, meeting expectations. Industrial Bank International has lowered the target price of SUNNY OPTICAL to 98 Hong Kong dollars while maintaining an "outperform market" rating. Industrial Bank International believes that SUNNY OPTICAL's performance has shown signs of recovery, mainly due to the resurgence of the smartphone market driving an increase in shipments; optimization of the product mix of mobile phone camera and handheld camera modules; and an increase in average selling prices and gross profit margins. The rising demand for new energy and automotive intelligent technology has led to an increase in shipments of vehicle-mounted lenses (VLS).