[ET Net News Agency, 28 October 2019] Daiwa Research raised its target price for Sunny
Optical Technology (02382) to HK$137 from HK$115 and maintained its "buy" rating.
The research house views favorable trends as intact and raised its 2019-21 EPS forecasts
by 2-9%. However, Daiwa sees Huawei's target of 250-260m smartphone volume for 2020 as too
aggressive given the uncertainty of its overseas sales due to the lack of GMS (Google
Mobile Services) support.
Daiwa views Sunny as a major beneficiary of the intact specs upgrades on its leading
technology and solid execution, which should drive it to deliver strong revenue growth
of 21-34% in 2019-20. It raised its 2019-21 EPS forecasts by 2-9% on a more optimistic
revenue and margin outlook. (KL)