[ET Net News Agency, 30 November 2020] UOB Kay Hian raised its target price for Sunny
Optical Technology (02382) to HK$178 from HK$143.4 and maintained its "buy" rating.
The research house expects the handset component industry to enjoy a speedy recovery
from 4Q on the back of a rebound in shipment volume and spec upgrade trend. UOBKH expects
that prices of 5G-related components to decline, given better economies of scale and
supply-demand dynamics.
It believes this moves the handset cameras back under the spotlight after a hiatus in
2020. Sunny will benefit as an industry leader after a year of market consolidation. It
thus deserves to trade at a higher PE given a highly visible uptrend in handset spec
upgrade and smartphone volume rebound. (KL)