[ET Net News Agency, 14 October 2020] CMB International Securities (CMBIS) lowered its
target price for Sunny Optical (02382) to HK$146.1 from HK$148 and maintained its "buy"
rating.
The research house believes negative impacts from the Huawei ban and cam de-spec in 2H
have been mostly priced in as Sunny's corrected 15% in the past two months. Backed by
Xiaomi/OPPO restocking and Samsung recovery in 4Q, Sunny's handset camera module (HCM) /
handset lens set (HLS) / vehicle lens set (VLS) shipment will likely beat management
guidance of 10%/5%/10% in FY2020 (versus 21%/18%/3% year-to-date).
In addition, CMBIS thinks Sunny is well-positioned to accelerate share gain and benefit
from a strong pipeline from Xiaomi/Oppo/Samsung in 4Q, given ongoing high-end demand
weakness. It lowered its FY2020-22 EPS forecasts by 1-6% for slower ASP upgrade but higher
shipment. (KL)