Investment Rating - The report maintains a "Hold" rating for the company with a target price of HKD 47.31, reflecting a price-to-earnings ratio of 25.9 times FY25E earnings [8]. Core Insights - The company is expected to benefit from a high-end upgrade cycle driven by AI smartphones, ADAS mixed lenses, and AR Glass opportunities, indicating a positive outlook for growth [2][8]. - The management has raised global and China smartphone shipment forecasts for 2024 by 1.7% and 1.1%, respectively, suggesting a recovery in the smartphone market [2]. - The automotive segment is projected to maintain a gross profit margin (GPM) of over 40%, driven by growth in automotive modules [2]. - The XR business is anticipated to see diffraction waveguides become mainstream, positioning AR Glass as the next computing platform [2]. Financial Summary - Revenue is projected to increase from RMB 31,681 million in FY23A to RMB 36,545 million in FY24E, representing a year-over-year growth of 15.4% [6]. - Net profit is expected to recover from RMB 1,099.4 million in FY23A to RMB 1,351.2 million in FY24E, with a year-over-year growth of 22.9% [6]. - The company's earnings per share (EPS) is forecasted to rise from RMB 1.01 in FY23A to RMB 1.24 in FY24E [6]. - The price-to-earnings (P/E) ratio is projected to decrease from 43.9x in FY23A to 35.7x in FY24E [6]. Market Position and Valuation - The company holds a leading position in the camera module (CCM) market in China, with a target P/E of 18x reflecting its advanced technology capabilities [8]. - The automotive lens business is assigned a P/E of 35x due to its high profitability and growth potential, with a CAGR of 25% from FY20 to FY23E [8]. - The smartphone lens segment is valued at a P/E of 25x, indicating confidence in its growth trajectory amid ongoing upgrades [8].

Investment Rating - The report maintains a HOLD rating for Sunny Optical with a target price of HK$47.31, implying a potential downside of 0.5% from the current price of HK$47.55 [3][13]. Core Insights - The report highlights positive expectations for Sunny Optical driven by high-end upgrades in the smartphone market, advancements in AI phone technology, and growth in automotive and XR (extended reality) segments [2][3]. - Management has raised the global and China smartphone shipment forecasts for 2024, indicating a recovery in the smartphone market [2]. - The automotive segment is expected to maintain a gross profit margin (GPM) of over 40% in 2024, with growth in auto modules contributing to profitability [2]. - The XR business is positioned to capitalize on the emerging AR glass market, which is anticipated to become the next computing platform [2]. Financial Summary - Revenue is projected to grow from RMB 31,681 million in FY23A to RMB 36,545 million in FY24E, reflecting a year-on-year growth of 15.4% [11][12]. - Net profit is expected to increase from RMB 1,099.4 million in FY23A to RMB 1,351.2 million in FY24E, representing a year-on-year growth of 22.9% [11][12]. - The report indicates a recovery in gross profit margin from 14.5% in FY23A to 14.1% in FY24E, with further improvements expected in subsequent years [12][20]. Segment Performance - In the smartphone segment, management anticipates an ASP (average selling price) and GPM recovery in 2024 due to high-end specification upgrades and improved product mix [2]. - The automotive segment is projected to see stable GPM at approximately 40% in 2024, with a focus on high-margin auto modules [2]. - The XR segment is expected to see significant investment in technologies such as diffractive waveguides, positioning Sunny Optical favorably in the AR/VR market [2].

Investment Rating - The report maintains a "HOLD" rating for the company with a target price of HKD 47.31, reflecting a potential downside of 9% from the current price of HKD 52.00 [4][14]. Core Insights - The company is expected to see a recovery in smartphone shipments and an acceleration in high-end upgrades in the second half of 2024, driven by the resurgence of smartphone demand and upgrades to high-end models [2][3]. - The company holds a leading position in the global market for smartphone camera modules and automotive lenses, with significant opportunities in the high-end ADAS/LiDAR/HUD markets [2][3]. - The management is optimistic about long-term growth driven by edge AI applications, which are expected to enhance traditional hardware capabilities across various sectors including smartphones, automotive, AR/VR, and robotics [3]. Financial Summary - Revenue is projected to increase from RMB 31,681 million in FY23A to RMB 36,545 million in FY24E, representing a year-on-year growth of 15.4% [1][19]. - Net profit is expected to recover from RMB 1,099.4 million in FY23A to RMB 1,351.2 million in FY24E, with a year-on-year growth of 22.9% [1][19]. - The company's gross profit margin (GPM) is anticipated to improve from 14.5% in FY23A to 14.1% in FY24E, with further increases expected in subsequent years [1][19]. Valuation - The target price of HKD 47.31 is derived from a sum-of-the-parts (SOTP) valuation method, reflecting the company's diversified business segments and growth visibility in various markets [14][15]. - The company is assigned a price-to-earnings (P/E) ratio of 18x for its camera module business, 35x for its automotive lens business, and 25x for its smartphone lens segment, indicating strong growth potential in these areas [14][15].

M N 20 Jun 2024 CMB International Global Markets | Equity Research | Company Update Sunny Optical (2382 HK) Investor Day takeaways: High-end upgrade to accelerate in 2H24E; Edge AI to drive long-term growth We attended Sunny Optical’s Investor Day at its Yuyao headquarters. Overall, while Target Price HK$47.31 shipment guidance remained unchanged, we are encouraged by Sunny’s positive Up/Downside (9.0%) view on smartphone recovery and accelerated upgrade in high-end models in Current Price HK$52.00 2H24E. K ...

Investment Rating - The report maintains a "Buy" rating for the company [1][2]. Core Insights - The company has shown a recovery in revenue in the second half of 2023, with a year-on-year growth of 7.3% and a quarter-on-quarter growth of 21.9%, reaching 17.4 billion RMB [2]. - The company's gross margin for the second half of 2023 was recorded at 14.1%, showing a slight decline compared to the previous period [2]. - The net profit attributable to shareholders for the second half of 2023 was 660 million RMB, a decrease of 37% year-on-year [2]. - The company expects improvements in profitability for mobile products in 2024, driven by increased shipments and better product mix [2]. - The automotive business continues to grow steadily, with a revenue increase of 18% year-on-year in the second half of 2023 [2]. - The XR business has shown signs of recovery, with strategic partnerships leading to new project launches [2]. Financial Summary - The company's revenue for 2022 was 33.2 billion RMB, which decreased to 31.7 billion RMB in 2023, with a projected increase to 35.5 billion RMB in 2024 [5][19]. - The net profit attributable to shareholders dropped from 2.4 billion RMB in 2022 to 1.1 billion RMB in 2023, with an expected recovery to 1.9 billion RMB in 2024 [5][19]. - The overall gross margin is projected to improve from 14.5% in 2023 to 17.2% in 2024 [19]. - The company’s earnings per share (EPS) is expected to rise from 1.00 RMB in 2023 to 1.72 RMB in 2024 [5][19]. Segment Performance - Optical components, optoelectronic products, and optical instruments contributed 30%, 68%, and 2% to the revenue respectively in the second half of 2023 [2]. - Mobile-related products accounted for 65% of total revenue, while automotive-related products contributed 16% [2]. - The company maintained its leading position in the global automotive lens market, with a market share that widened compared to its closest competitor [2].

Financial Performance - Revenue for 2023 was RMB 31,681.3 million, a decrease of 4.6% from RMB 33,196.9 million in 2022[6]. - Gross profit for 2023 was RMB 4,590.4 million, down 30.5% from RMB 6,605.0 million in 2022[6]. - Profit for the year was RMB 1,150.3 million, a decline of 53.6% compared to RMB 2,474.1 million in 2022[6]. - Earnings per share decreased to RMB 1.0 in 2023 from RMB 2.2 in 2022[6]. - The profit attributable to owners of the Company was approximately RMB 1,099.4 million, reflecting a decrease of approximately 54.3% compared to the previous year[13]. - The net profit for the year ended 31 December 2023 was approximately RMB 1,150.3 million, a decrease of approximately 53.5% compared to the previous year[43]. - The net profit margin for the year ended 31 December 2023 was approximately 3.6%, down from approximately 7.5% in 2022[46]. - Revenue from the Optical Components business segment was approximately RMB 9,555.1 million, a slight increase of approximately 0.9% due to increased shipment volume of vehicle lens sets[35]. - Revenue from the Optoelectronic Products business segment was approximately RMB 21,599.4 million, representing a decrease of approximately 7.4% primarily due to lower average selling prices of handset camera modules[35]. - Revenue from the Optical Instruments business segment was approximately RMB 526.8 million, an increase of approximately 30.5% driven by higher demand in domestic industrial and medical fields[35]. Assets and Liabilities - Total assets increased to RMB 50,297.1 million in 2023, up 16.9% from RMB 43,001.3 million in 2022[7]. - Total liabilities rose to RMB 27,415.5 million, an increase of 31.8% from RMB 20,818.9 million in 2022[7]. - The gearing ratio improved to 11.1% in 2023 from 14.4% in 2022, indicating a reduction in financial leverage[8]. - The Group's cash and cash equivalents as of 31 December 2023 were approximately RMB 13,084.5 million, an increase from approximately RMB 7,033.2 million as of 31 December 2022[50]. - The current ratio as of 31 December 2023 was approximately 1.7 times, compared to approximately 1.6 times as of 31 December 2022[49]. Market Position and Business Development - The company maintained its position as the global No. 1 in market share for vehicle lens sets, handset lens sets, and handset camera modules[12]. - The development wave of electrification and intelligence in automobiles continued to drive the company's automotive camera business[12]. - The Group plans to explore new market potential in smartphone-related businesses and enhance competitiveness in automotive and XR sectors[15]. - The Group's vehicle modules business secured a global large designated project on 8-mega pixel vehicle modules from the world's number one automobile manufacturer, consolidating its position as the global No. 1 in market share[28]. - The Group's intelligent equipment business focused on industrial and medical equipment, leveraging advantages in optical imaging and image processing algorithms[32]. Research and Development - The Group completed the R&D of a 17-mega pixel "two-in-one" front-view vehicle lens set, combining a telephoto 8-mega pixel lens and a wide field-of-view 17-mega pixel lens[22]. - The Group actively invested in R&D for VR near-to-eye display products and became a top-pick supplier for world-renowned customers[25]. - The Group completed the development of visual modules for next-generation major platforms in the VR/AR fields, focusing on high-cost effectiveness[29]. - The Group has established production bases in India and Vietnam to promote its global production layout and meet overseas market demand[88]. - R&D centers have been set up in China and South Korea to provide international technical support for the R&D of optical and optical-related products[89]. Sustainability and ESG - The Group issued USD 400 million in sustainability-linked bonds, targeting a 20.0% reduction in Scope 1 and 2 GHG emissions intensity by fiscal year 2025 compared to the baseline for fiscal year 2021[13]. - The Group's ESG rating was upgraded from "A" to "AA" by MSCI, and it was included in several sustainability indices[14]. - The management emphasized a commitment to sustainability, with plans to reduce carbon emissions by 30% over the next five years[107]. Corporate Governance - The Company has complied with all mandatory disclosure requirements of the Corporate Governance Code for the year ended December 31, 2023[126]. - The Company has applied principles of good corporate governance and complied with most recommended best practices set out in the Corporate Governance Code[126]. - The Board consists of seven Directors, including three Executive Directors and four Independent Non-executive Directors, ensuring a balanced composition for independent judgment[133]. - The Company has established systems for monitoring risk, financial control, and compliance with laws to ensure the integrity of financial reporting[130]. - The Company has a structured approach to reviewing and guiding corporate strategies aligned with its culture[128]. Employee and Workforce - The Group had 29,524 full-time employees as of 31 December 2023, with a competitive emolument system established to attract and retain talent[92]. - The age group under 30 years comprises 53.9% of the workforce, indicating a young employee base[197]. - Senior management positions account for 3.0% of the total workforce, with approximately 19.0% of senior management being female[198]. - The majority of employees (95.5%) are formal employees, while trainees account for 4.5%[197]. Future Outlook - Looking forward to 2024, the Group aims to explore new market potential in smartphone-related businesses and enhance competitiveness in automotive and XR sectors[15]. - The company anticipates facing multiple challenges in 2024, including global economic recovery setbacks, insufficient consumer demand, supply chain restructuring, and intensified market competition[102]. - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the upcoming fiscal year[107].

Group 1 - Huawei's Vice Chairman Xu Zhijun emphasized the importance of building the HarmonyOS native application ecosystem as a key strategic initiative for 2024, alongside the Kunpeng and Ascend ecosystems [1] - Shanghai Securities predicts that the progress of the HarmonyOS ecosystem will continue to exceed expectations, with the official launch of the Harmony Star River version in Q4 being a significant turning point [1][2] - Huawei aims to migrate over 5,000 applications currently used on smartphones to the HarmonyOS native operating system within 2024, achieving a unified operating system and application ecosystem [1] Group 2 - Over 4,000 applications have already joined the HarmonyOS ecosystem, with more than 600 applications from Guangdong province alone [1] - The development of HarmonyOS applications and devices is expected to unlock a market worth billions, with an estimated 20.8 billion yuan market generated from the migration of applications and an additional 32 to 48 billion yuan from new IoT devices over the next five years [2] - Several key applications, including Bilibili, Xiaohongshu, iQIYI, and WeChat, are in the process of developing HarmonyOS native applications [1][2]

Investment Rating - The report maintains a BUY rating for Sunny Optical with a target price of HKD 49.37, representing an upside of 31.8% from the current price of HKD 37.45 [1]. Core Insights - Sunny Optical's FY23 results were disappointing, with revenue and net income reported at RMB 31,681 million and RMB 1,099 million, reflecting year-on-year declines of 4.6% and 54.3% respectively. The results were below market consensus and the company's own estimates, primarily due to weak smartphone demand, ASP and GM pressures, and increased interest expenses [1][2]. - The company is focusing on improving its product mix to enhance ASP and GM, with expectations for a gradual recovery in global smartphone shipments in FY24E, driven by flagship models from top-tier clients [3][5]. Company Update - Sunny's high-end product contribution has stabilized, with a notable performance in the 6P+ lens segment, which accounted for 32% of the high-end product mix in FY23. However, overall high-end product shipments declined by 20% year-on-year [2]. - The company provided conservative guidance for FY24E, expecting a 5% year-on-year growth in HLS shipments while HCM shipments are anticipated to remain flat [3]. - Sunny's investment in R&D has increased, with R&D expenses reaching approximately RMB 2.6 billion, accounting for 8.1% of total revenue, and FY24E CAPEX is guided to increase by 20% year-on-year to around RMB 3.0 billion [6][7]. Financial Performance - The report indicates a significant reduction in FY24E-25E EPS estimates by 22.4% and 32.7% respectively, due to lower sales and GM assumptions. Despite this, a mild recovery is expected in FY24E [7][10]. - Revenue for FY24E is projected at RMB 35,823 million, with a gross margin of 22.6%, reflecting a decrease of 590 basis points compared to previous estimates [10]. Market Position and Outlook - Sunny Optical holds a dominant position in the Chinese handset market with approximately 50% market share and is well-positioned to benefit from the increasing adoption of automotive products and non-smartphone segments, which accounted for over 30% of total revenue in FY23 [4][7]. - The automotive segment continues to show strong growth, with vehicle-related product sales increasing by 28.6% year-on-year, and the company expects to reach RMB 2.0 billion in automotive CCM revenue for FY24E, representing a 25% year-on-year growth [6].

舜宇光学（2382） 更新报告 买入 2023年04月09日 盈利能力继续承压，未来手机业务回暖，车载光学和 VR/AR 新曲线 陈晓霞 稳 中 有进 852-25321956  手机业务受挫，盈利能力继续承压：公司 2023 年全年实现收入 316.8 亿人民币，同比减少 4.6%。毛利率为 14.5%，较去年同期下降约 5.4 个 xx.chen@firstshanghai.com.hk 百分点。归母净利润 11.0 亿元，同比减少 54.3%，符合此前公司盈利 预警中净利润减少约 50%-55%的预期，主要是全球智能手机需求继续疲 主要数据 软和光学降规降配趋势延续导致公司手机相关产品 ASP 和毛利同比下 行业 TMT 滑。 股价 38.55港元  未来手机业务回暖，车载光学和 VR/AR 新曲线稳中有进：光学零件业务 目标价 45.00港元 收入同比略微增长 0.9%至 95.6 亿，分部毛利率由 33.4%下滑至 28.4%，其中手机镜头出货量达 11.7 亿件，同比小幅下降 1.8%，高端 （+ 16.73%） 市场依旧低迷，6P 及以上镜头出货量同比下降 20.0%。随着智能手机市 股票代 ...

车载业务稳步增长，手机有望受益光学升级&AI发展 舜宇光学科技（2382.HK ）/ 证券研究报告/公司点评 2024年4月2日 电子 [Table_Industry] [评Ta级ble：_T买itle入] （维持） [公Ta司ble盈_F利in预anc测e1及] 估值 市场价格：40.30港元/股 指标 2022A 2023A 2024E 2025E 2026E 分析师：王芳 营业收入（百万元） 33,197 31,681 34,615 38,208 41,735 增长率yoy% -11% -5% 9% 10% 9% 执业证书编号： S0740521120002 净利润（百万元） 2,408 1,099 1,523 1,921 2,332 Email： wangfang02@zts.com.cn 增长率yoy% -52% -54% 39% 26% 21% 分析师：张琼 每股收益（元） 2.20 1.00 1.39 1.75 2.13 执业证书编号： S0740523070004 每股现金流量 6.73 2.43 2.85 2.87 3.28 净资产收益率 11% 5% 6% 7% 8% Email：zhan ...