[ET Net News Agency, 19 August 2020] Daiwa Research raised its target price for Sunny
Optical Technology (02382) to HK$158 from HK$142 and maintained its "buy" rating.
The research house said Sunny's solid 1H results and management's positive tone for
industry trends reaffirm Daiwa's positive thesis despite the muted near-term outlook on
soft demand due to COVID-19.
Daiwa expects near-term share-price volatility on smartphone demand uncertainty and
Huawei risks on tightened restrictions by the US and suggested that investors take the
opportunity to gradually accumulate shares. It raised its 2020-22 EPS forecasts by 1-2% on
optimistic margin assumptions. (L)