[ET Net News Agency, 18 March 2020] UOB Kay Hian lowered its target price for Sunny
Optical (02382) to HK$126.1 from HK$161 and maintained its "buy" rating.
The research house said Sunny's 2019 net profit soared 60%, beating its estimates by
11%, mainly due to sales growth in all business segments, as well as improvements in ASP
and margin.
However, management has cut 2020's volume growth guidance due to the adverse COVID-19
impact. Nonetheless, UOBKH believes COVID-19 is a one-off, and Sunny can still achieve
growth in the next three years as it rides on 5G and the handset camera spec upgrade
cycle.
UOBKH lowered its 2020 profit forecast by 6% mainly to factor in the adverse impact of
COVID-19 on both volume and gross margin. But it raised 2021 profit forecast by 2%, mainly
to reflect ASP increase driven by 5G smartphone and gross margin improvement. (KL)