[ET Net News Agency, 6 November 2019] Macquarie Research initiated coverage on Sunny
Optical Technology (02382) with an "outperform" rating and a target price of HK$163.56.
The research house said major smartphone camera upgrades occur every three years. It
sees that specs upgrades have accelerated in 2H for the 132 smartphones it surveyed.
About 80% of the new smartphones launched in 2H have triple or quad camera systems, and
60% of the main cameras have a resolution of 40MP or above.
Macquarie forecast the lens market size will increase from an estimate of 3.6bn sets in
2018 to 4.1bn in 2019, 4.8bn in 2020, and 5.6bn sets in 2021, with the average number of
cameras per smartphone increasing from 2.4 in 2018 to 2.9, 3.3 and 3.8 units,
respectively, in 2019, 2020 and 2021.
Macquarie forecast the camera upgrade cycle and the increasing adoption of cameras in
cars to drive net income growth of 37%, 54% and 38% over 2019-21. (KL)