[ET Net News Agency, 19 July 2019] Morgan Stanley lowered its target price for Sunny
Optical Technology (02382) to HK$75 from HK$80 and maintained its "equal-weight" rating.
The research house expects blended ASP decline for CCM (Compact Camera Modules) in 1H of
3%. Together with the worse yield for high-end spec modules in 1H, Morgan expects CCM GPM
of 7.6%.
It expects 1H operating profit to grow 6%. There was a non-operating loss item in 1H
2018, so Morgan estimated net profit to reach Rmb1.3bn or +12% YoY in 1H.
Looking into 2H, Morgan expects Huawei's mix to shift towards midrange phone to take
share from Xiaomi and OPPO. Also, high-end phone volume overseas remains largely
uncertain. Thus, Morgan expects a limited recovery in CCM GPM and expects a level similar
to 1H at 7.6%. (KL)