SUNNY OPTICAL Jul Handset Lens Sets Shipment Vol. Drops 14.6% YoY

The analyst rating for SUNNY OPTICAL (02382.HK) is a "Buy" with a target price of HKD 103. The positive outlook is primarily based on the company's plan to spin off its vehicle-related optical businesses for a separate listing on the Hong Kong main board. This segment, which includes camera lenses, camera modules, and LiDAR components, accounted for 17% of SUNNY OPTICAL's revenue in the first half of 2025. The broker anticipates that the vehicle business will experience structural double-digit growth due to the increasing adoption of Advanced Driver Assistance Systems (ADAS) and specification upgrades. The separate listing is expected to provide a clearer market valuation for this segment while allowing SUNNY OPTICAL to retain its controlling stake, which is viewed as a positive catalyst for the stock price.

The analyst rating from BofA Securities for SUNNY OPTICAL is maintained at "Buy" due to the anticipated acceleration in the expansion of the company's auto-related optic business following the proposed spin-off. The broker estimates that this segment will generate RMB7.4 billion in revenue by 2025, representing 22% of the company's total revenue, supported by increased domestic and international customer orders for products like camera modules. The target price set by BofA Securities is $104.

The analyst rating for SUNNY OPTICAL (02382.HK) was reiterated as "Outperform" due to several positive factors highlighted in the research report. The company delivered a revenue of RMB19.7 billion in 1H25, which was in line with street consensus, and net profit attributable to shareholders increased by 52.6% year-over-year to RMB1.65 billion, driven by margin expansion in handset lens sets and an improved product mix. Additionally, the broker expects stable handset shipments and significant increases in lens/module average selling prices (ASP) in the coming years, leading to a raised target price from HKD72.1 to HKD90.53.