SUNNY OPTICAL(HK:02382)2025-08-11 02:58Summary of Sunny Optical (2382.HK) Conference Call Company Overview - Company: Sunny Optical (2382.HK) - Industry: Optical components and modules Key Points from the Conference Call Shipment Performance - Handset Lens: - July shipment increased by 4% month-over-month (MoM) but decreased by 15% year-over-year (YoY) to 99 million units - Cumulative shipments for the first seven months of 2025 (7M25) totaled 692 million units, reflecting an 8% YoY decline compared to 23% YoY growth in 7M24 [1][8] - Camera Modules: - July shipment rose by 2% MoM but fell by 3% YoY to 43 million units - 7M25 shipments totaled 271 million units, down 19% YoY compared to 8% YoY growth in 7M24 [1][9] - Vehicle Lens: - July shipment increased by 3% MoM and 29% YoY to 11 million units - 7M25 shipments reached 76 million units, showing a 23% YoY increase compared to 12% YoY growth in 7M24 [1][9] Financial Performance - Revenue Projections: - Revenues for 2025E are projected at RMB 43.66 billion, with a YoY growth of 14% [10][14] - Net Income: - Expected net income for 2025E is RMB 3.41 billion, reflecting a 26% YoY increase [10][14] - Earnings Per Share (EPS): - Projected EPS for 2025E is RMB 3.13, with a 26% YoY growth [10][14] Valuation and Price Target - Target Price: - The target price remains unchanged at HK$89.0, based on a price-to-earnings (P/E) ratio of 21.6x for 2026E [9][11] - Valuation Methodology: - The target P/E multiple is consistent with the company's historical trading range and is derived from the correlation between peers' 2026 P/E and expected net income growth [9][11] Risks and Considerations - Market Risks: - Potential risks include unexpected competition in the handset lens market, shipment growth variability in camera modules, and fluctuations in operating expenses [13][14] Conclusion - The company maintains a Neutral rating, reflecting cautious optimism amid mixed shipment performance and a stable financial outlook [1][9][14]