China's Sunny Optical touches 4-week low on weak earnings estimates

Sunny Optical Technology Co

13/02/2023 03:49

** Shares of Chinese handset camera modules producer and
supplier Sunny Optical Technology (Group) Co Ltd  2382.HK  fall
as much as 4.2% to HK$98.15, their lowest since Jan. 16
    ** Stock is the third-biggest decliner in Hang Seng
Composite Index on industrials  .HSCIIG , fourth-biggest loser
in both Hang Seng Index  .HSI  and Hang Seng Tech Index
 .HSTECH 
    ** Zhejiang-based firm expects to record a net profit of
between 2.24-2.49 billion yuan ($327.99-$364.60 mln) for 2022,
or a 50-55% drop as compared to 2021's 4.99 bln yuan profit,
amid resurgence of pandemic, chip shortage and Chinese yuan's
depreciation 
    ** Says weak market demand increases pressure on prices and
gross profit margins
    ** Daiwa maintains "buy" on the stock saying it remains
positive for Sunny and expect the firm to deliver solid earnings
growth in 2023-24 on favourable trends and suggest investors to
accumulate amid volatile share price in the near run
    ** Hang Seng Tech Index  .HSTECH  falls 0.8% and Hang Seng
Composite Index on industrials  .HSCIIG  slips 0.1%
    ** Hang Seng Composite Index  .HSCI  eases 0.5% and Hang
Seng Index  .HSI  is down 0.6%
($1 = 6.8294 Chinese yuan renminbi)
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))