[ET Net News Agency, 18 March 2020] Daiwa Research lowered its target price for Sunny
Optical Technology (02382) to HK$133 from HK$163 and maintained its "buy" rating.
The research house said Sunny's cautious shipment guidance for 2020 underpins Daiwa's
concerns over COVID-19, while its positive tone for industry trends and strong 2H 2019
results echo Daiwa's long-term positive thesis on multi-cams.
After factoring in the demand uncertainty due to COVID-19, Daiwa lowered its 2020-21 EPS
forecasts by 8-14%. It expects Sunny's earnings to grow a modest 15% in 2020, and resume
its strong growth momentum (+35%) in 2021 on favourable trends after the demand recovers.
(KL)