[ET Net News Agency, 9 March 2020] Nomura raised its target price for Sunny Optical
(02382) to HK$150 from HK$100 and maintained its "buy" rating.
The research house believes the China smartphone (SP) market demand has recovered
significantly since late-February. It thinks Oppo and Vivo were the worst hit in February
due to their high offline sales exposure, which is likely to have also reflected in
Sunny's slow February monthly shipments.
However, Nomura thinks Oppo and Vivo's momentum has strengthened meaningfully since
end-February with potential order recovery in March and April. Xiaomi (01810) has been the
most resilient China SP company year-to-date. Huawei witnessed moderate order weakness in
the last few weeks but has recently been adding back some short-supplied components for
mid-to-low end models.
Nomura revised its 2019/20 earnings forecasts by +4%/-2%. (KL)