Apple supplier Sunny Optical’s shares surged as much as more than 8% at one point before paring gains to 2.5%. The company’s shipments of handset lense sets reached rose 16.9% from a year earlier and up 3.1% from the previous month. The shipments of handset camera modules rose 41.4% year over year and down 1.4% from the previous month.
Ming-Chi Kuo, a renowned Apple analyst at TF International, said Sunny Optical may have passed its bottom.
Benefiting from inventory replenishment of Android mobile phones, China’s mobile phone market is expected to resume growth in Q4, and meanwhile iPhone and Huawei orders are likely to support Sunny Optical’s shipments of mobile phone lenses and CCMs (cmos camera modules) in Q4 to achieve double-digit growth, he said.
The latest survey has shown that the prices of some of Sunny Optical’s lenses and CCMs have increased, which also indicates that the bottom has passed, he said.
Haitong International upgraded the rating on Sunny Optical from Neutral to Outperform, and raised its target price from HK$50 to HK$68, saying the company has already reached the trough, said Haitong International in a note.