China's Sunny Optical hits near 9-month low on weak H1 estimates

Sunny Optical Technology Co

20/07/2023 03:23

** Shares of Chinese handset camera modules producer and
supplier Sunny Optical Technology  2382.HK  drop as much as
13.3% to HK$67.65, lowest since Oct. 31
    ** Stock on track for biggest one-day pct decline since
August 2018, if losses hold
    ** Biggest pct loser in the Hang Seng Index  .HSI , Hang
Seng Tech Index  .HSTECH , Hang Seng Composite Index  .HSCI  and
Hang Seng China Enterprises Index  .HSCE  
    ** Zhejiang-based co expects H1 net profit to drop 65%-70%
YoY to 407.4 mln-475.3 mln yuan ($56.75 mln-$66.21 mln) amid a
slow recovery in the Chinese economy, weak global demand in the
smartphone market, intense competition and depreciation of the
Chinese yuan  
    ** Citi downgrades Sunny Optical to "neutral" from "buy" and
trims TP to HK$80 from HK$110, saying the number is somewhat
weaker than expected amid prolonged smartphone market weakness
and anticipates the market to react negatively on the release 
    ** The Hang Seng Tech Index climbs 0.9% and the Hang Seng
Composite Index gains 0.8%
    ** The Hang Seng China Enterprises Index rises 1.3% and the
Hang Seng Index adds 1%
    ** As of last close, the stock had fallen 16% this year
    ($1 = 7.1784 yuan)

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