[ET Net News Agency, 18 November 2020] Nomura lifted its target price for Sunny Optical
Technology (02382) to HK$165 from HK$135 and maintained its "neutral" rating.
The research house thinks the Honor spin-off is neutral-to-positive for the handset
camera industry, as although the highest-end camera setup in the P/Mate series may not be
available in the new Honor's high-end products, given the lack of tailor-made ICs and R&D
teams, Honor is also relatively aggressive in camera specs in mid-to-low end smartphones.
Nomura said Sunny's camera module business heavily relies on Xiaomi, and partially on
Oppo and Vivo now, which could be affected by Honor. Although some of Oppo's and Vivo's
camera module orders went to other suppliers (including Sunny) as O-film was added to the
Entity List, new Honor could use O-film and Q Tech more initially as camera module
suppliers, rather than Sunny, due to a change in the supply chain strategy. (KL)