[ET Net News Agency, 10 September 2019] Credit Suisse raised its target price for Sunny
Optical Technology (02382) to HK$141 from HK$103.7 and maintained its "buy" rating.
Sunny reported August HCM/handset lens/vehicle lens shipments of +22%/+46%/+31% YoY and
+16%/+22%/+14% MoM. Year-to-date HCM/handset lens rose 27%/37% YoY, above the research
house said's full-year estimates of 23%/35% YoY.
Credit Suisse believes Sunny's handset lens/HCM (handset camera module) growth was
likely driven by new product launch cycle in September/October and normalised Huawei
orders.
Sunny expects shipment/ASP growth handset lens and shipment/GM improvement in HCM on
share gain in Samsung and expected double-digit growth in vehicle lens in 2020.
Credit Suisse lifted HCM shipment to 24%/22%/13% YoY in 2019/2020/2021 from 23%/16%/15%
on 5G cycle, with better ASP/GM. It also raised handset lens GM on better mix. The
research house sees strong growth in ToF (time-of-flight) modules and expects new customer
contribution from late-2019/2020.
Credit Suisse raised 2019/2020/2021 EPS forecasts by 3%/8%/11%, factoring in a better
outlook. (KL)