Apple supplier Sunny Optical posted 67.8% slump in H1 net profit, warned of grave challenges
COMPANY NEWS STOCKS
Apple supplier Sunny Optical posted 67.8% slump in H1 net profit, warned of grave challenges
COMPANY NEWS STOCKS

Apple supplier Sunny Optical posted 67.8% slump in H1 net profit, warned of grave challenges

 

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Sunny Optical Technology, a supplier to iPhone maker Apple, fell 2.4% to close at HK$63.05 in Hong Kong after it posted 67.8% slump in first-half net profit amid weak demand and warned of “grave challenges” ahead. 

The company’s net profit slumped by 67.8% year over year in the first half to 436.7 million yuan and revenue dropped by 15.9% to 14.28 billion yuan, mainly due to the fall in the sales of handset lens sets and handset camera modules amid intense competition, it said.

Revenue from its optical components business fell by 1.8% to 4.32 billion yuan while that from optoelectronic products plunged by 21.3% to 9.74 billion yuan.  The overall gross profit margin dropped by 5.9 percentage points to 14.9% in the six months.

While warning of a slow recovery of the global economy, weak consumer demand and intensified competition, the firm believes “the rapid development of autonomous driving will promote the adoption of multi-sensor and huge market potential will appear in virtual and augmented reality, robotic vision and other emerging industries.”