[ET Net News Agency, 14 January 2021] HSBC Qianhai Securities Research lifted its
target price for Sunny Optical (02382) to HK$178.9 from HK$150.2 but downgraded its rating
to "hold" from "buy".
The research house said Sunny's share price has rallied by more than 50% since October.
HSBC thinks most of the positives are priced in as the stock is trading at 27x 12-month
forward P/E.
HSBC noted that the competitive landscape is not favourable in 2021. It sees a growing
trend for vertical integration for camera lens and module makers.
It believes the increased use of sensors along with the proliferation of smart vehicles
will drive the growth of auto lens products for Sunny in the coming years. HSBC revised
its net profit estimates by 2%, 2%, and 3% for 2020-22, mainly to factor in higher auto
lens shipment. (KL)