Sunny Optical jumps on solid growth in handset camera modules shipment

Sunny Optical Technology Co

12/10/2023 03:02

** Shares of Sunny Optical Technology Group  2382.HK  jump
8.1% to HK$64, their highest since Sept. 7, and on track to
extend gains for a fourth consecutive session
    ** Stock is the biggest pct gainer in Hang Seng Index  .HSI 
and Hang Seng Commerce & Industry Index  .HSNC , and the second
biggest pct gainer in Hang Seng Tech Index  .HSTECH 
    ** Co says September shipment volume of handset camera
modules up 41.1% YoY and handset-lens sets up 16.9% YoY
    ** Daiwa reaffirms "buy" rating, suggests investors
gradually accumulate shares in light of the upcoming favourable
trends
    ** "Despite challenges of soft smartphone demand from
near-term macro headwinds, we expect Sunny to resume solid
earnings growth in 2024-25 driven by benefits from upcoming spec
upgrade resumption for handsets, strong EV/ADAS trends and
rising iPhone order contribution" - Daiwa
    ** Hang Seng Tech Index surges 2%, while Hang Seng Commerce
& Industry Index and Hang Seng Index both rise 1.7%
    ** Stock down 32.3% YTD

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