SUNNY OPTICAL(HK:02382) Shenwan Hongyuan Securities·2025-06-17 14:55Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][5] Core Views - The company is a global leader in optical components and products, having established a strong market position in mobile camera lenses and automotive optical modules [5][39] - The company has a diversified product portfolio, including optical components, optoelectronic products, and optical instruments, with a focus on high-end applications [5][27] - The report forecasts significant revenue growth, with expected revenues of 434 billion, 456 billion, and 479 billion CNY for 2025, 2026, and 2027 respectively, alongside a projected net profit of 34 billion, 39 billion, and 44 billion CNY for the same years [6][5] Summary by Sections 1. Company Overview - Founded in 1984, the company has evolved from a local enterprise to a global leader in optical manufacturing, listed on the Hong Kong Stock Exchange since 2007 [16][5] - The company has implemented a "famous supporting role" strategy, focusing on eight major applications, and has established a stable partnership with global clients [36][39] 2. Market Position and Product Leadership - The company holds the number one global market share in mobile camera lenses at 30.8% and in mobile camera modules at 12.1% as of 2024 [52][39] - The automotive lens segment has also seen the company achieve the highest global market share, with significant growth in automotive camera modules and advanced driver-assistance systems (ADAS) [66][67] 3. Financial Projections - Revenue and profit forecasts indicate a recovery from previous downturns, with expected revenue growth rates of 21% in 2024 and 13% in 2025 [6][5] - The projected price-to-earnings (PE) ratio for 2025 is 19X, which is lower than the average PE of comparable companies at 24X, suggesting potential undervaluation [6][5] 4. Technological Advancements - The company has maintained a competitive edge through continuous innovation in optical technologies, particularly in high-end mobile and automotive applications [57][39] - The report highlights the successful mass production of advanced optical modules, including periscope and large-format modules, which are critical for future growth [57][59] 5. Global Expansion and Production Capabilities - The company has established multiple production bases both domestically and internationally, enhancing its manufacturing capabilities and service delivery [48][51] - The expansion into markets such as India and Vietnam has positioned the company to better serve global clients and adapt to local demands [48][51]