Sunny Optical tumbled by more than 5% to hit HK$80.1 after hitting a three-year low of HK$79.15 one day earlier, sliding for the eighth consecutive trading day.
Earlier data released by the company showed its shipments of handset lens slid 26.2% in August from a year ago to 92.57 million units, though up 3.9% from the prior month, and its shipments of handset camera modules tumbled 30% on year, though up 5.3% from the month before. The firm attributed the weakness to sluggish market demand for smartphones.
Goldman Sachs has maintained the company’s stocks at Sell rating, saying its August shipments indicates the handset lens market is reaching saturation and rising competition has eroded its shipments and gross profit margin.
Morgan Stanley maintained an Overweight rating for the company, but lowered the target price to HK$135. The bank said the firm’s handset lens shipment rose about 4% in August from the previous month and handset camera module rose 0.5%, and if the recovery continues in Sept – Dec, there’s a chance for the company to achieve its lowered full-year sales guidance. However, the bank doesn’t expect notable recovery of the overall smartphone market, it said.
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