[ET Net News Agency, 18 May 2020] Nomura lowered its target price for Sunny Optical
(02382) to HK$135 from HK$150 and downgraded its rating to "neutral" from "buy".
The research house believes the US government's escalation of the Huawei ban could
significantly limit the structural growth trend of camera spec upgrades in 2020-21, thus
weakening the competitive edge of leading camera supply chain players.
Although it is not clear whether the ICs for Huawei's smartphones (SP) can get shipment
approvals later from the US regulator, Nomura thinks the risk to Huawei's SP supply chain
is rising. (KL)