China's Sunny Optical hits near 7-year low on weak earnings forecast

Sunny Optical Technology Co

31/01/2024 02:44

** Shares of Chinese handset camera modules producer and
supplier Sunny Optical Technology Group Co Ltd  2382.HK  drop 
9.3% to HK$49, their lowest since February 2017
    ** Stock on track for biggest one-day pct fall since July
20, if current losses hold; down for a fourth straight session
    ** Stock biggest pct loser in the Hang Seng Index  .HSI ,
Hang Seng Tech Index  .HSTECH , Hang Seng Commerce & Industry
Index  .HSNC  and Hang Seng China Enterprises Index  .HSCE  
    ** Co estimates its 2023 net profit to be in 1.08 bln-1.20
bln yuan ($150.5 mln-$167.2 mln) range, down 50%-55% YoY, amid a
slow recovery of the Chinese economy, weak demand from global 
smartphone market, intense competition which has hit gross
profit margins 
    ** Citi says Sunny Optical's 2H23 net profit missed forecast
but marks 2023 the bottom
    ** Reiterates "buy" rating on intact camera spec upgrade
trend 
    ** The Hang Seng Commerce & Industry Index falls 1.6%, the
Hang Seng Tech Index drops 1.9%
    ** The Hang Seng Index down 1.3%, the Hang Seng China
Enterprises Index down 1.4% 
    ** Stock down 30.4% YTD
    
($1 = 7.1780 Chinese yuan)

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