Date of Report: October 15, 2024
Broker: CGS International

Company Overview

Sunny Optical Technology is a leading Chinese company specializing in the design, manufacture, and sale of optical and optical-related products. The company produces optical components such as lenses and imaging systems, serving industries like consumer electronics, vehicles, and medical devices.

4Q24 Shipment Growth Outlook

Sunny Optical Technology is expected to see a strong performance in the fourth quarter of 2024, driven by increased shipments of High Lens Sets (HLS) and Handheld Camera Modules (HCM). The company’s improved production capabilities and demand for its optical solutions are key contributors to this anticipated growth.

• Expected Shipment Increase: High Lens Sets (HLS) and Handheld Camera Modules (HCM)
• Timeframe: 4Q24

Business Outlook and Performance

The company is positioned for stronger growth in the coming months, supported by an increasing demand for its optical solutions, particularly in smartphones and vehicle camera modules. Sunny Optical Technology is expected to benefit from this rising demand, contributing to its strong financial performance in the near term.

Investment Recommendation and Valuation

The broker has maintained an “Add” rating for Sunny Optical Technology, reflecting its positive outlook for shipment growth and sustained market demand. The target price remains unchanged, based on a forward price-to-earnings (P/E) ratio.

• Rating: Add
• Target Price (TP): HK$72.00
• Valuation Basis: Forward P/E

Conclusion

Sunny Optical Technology is well-positioned to capitalize on the increased demand for its high lens sets and camera modules. The company’s growth trajectory looks promising for 4Q24, making it a solid choice for investors seeking exposure to the optical technology sector.

Report compiled by: CGS International, Malaysia