China's Sunny Optical climbs on robust earnings outlook

Sunny Optical Technology Co

22/07/2024 08:25

** Shares of Chinese handset camera modules producer and
supplier Sunny Optical Technology  2382.HK  climb as much as
3.5% to HK$49.95
    ** Stock last up 0.2%, on track to snap three straight
sessions of falls if trend holds
    ** Co estimates H1 net profit to jump 140%-150% Y/Y to 1.05
bln-1.09 bln yuan ($144.44 mln-$149.94 mln), thanks to a
recovery in the smartphone market 
    ** Says strong results also aided by a rise in shipment
volume of handset lens sets and handset camera modules with
increasing average selling prices and improving gross margins 
    ** Jefferies maintains "buy" rating, saying preliminary 1H24
net profit beats estimates and average selling prices and gross
margin recovery are well on-track
    ** Jefferies sees downside risks, including
slower-than-expected smartphone demand recovery and EV
penetration
    ** The Hang Seng Tech Index  .HSTECH  rises 2.1% and the
Hang Seng Index  .HSI  adds 1.3% 
    ** Stock down 32% YTD  

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))