Apple supplier Sunny Optical Technology is slumping more than 13% in Hong Kong after it said its first-half net profit attributable to shareholders is expected to tumble by 65% – 70% from a year earlier to about 407.4 – 475.3 million yuan.
The global smartphone demand has remained sluggish, industry competitions are becoming increasingly fierce and camera configurations of smartphones have been downgraded, leading the company’s shipments of handset lens and mobile phone camera modules to decline from a year earlier and increasing the pressure on the average selling price and gross profit margin, it said.
The global smartphone sales declined by 8% year over year in the second quarter of 2023, down 5% from the previous quarter, according to data from Counterpoint, marking the eighth consecutive quarter with a YoY decline. Read more …
Credit Suisse slashed the target price on Sunny Optical from HK$101 to HK$84 and maintained a Neutral rating. Read more …
CICC lowered the forecast of Sunny Optical’s net profit this year by 44% to 1.45 billion yuan, and by 28% to 2.23 billion yuan next year. It cut the target price by 14% to HK$81.9, maintaining an “outperform” rating. Read more …
Citi also downgraded Sunny Optical to Neutral and slashed its target price from HK$110 to HK$80. The bank lowered its forecast of the company’s net profit for 2023/24/25 by 57%/ 45%/ 34% respectively. Read more …
