The analyst rating for SUNNY OPTICAL (02382.HK) is maintained as a "Buy" despite a reduction in the target price from HKD101.47 to HKD91.38. The positive outlook is primarily driven by a strong profit alert for 2025, with expectations of a 70-75% year-over-year increase in net profit, attributed to high-end specification upgrades, an improved product mix, and investment income from a deal with Goertek Optical Tech. Additionally, the broker anticipates that trends in smart driving, the mass production of AI/AR glasses, and high-end camera specification upgrades will support revenue growth in 2026, which is expected to offset weaknesses in the smartphone business due to memory cost pressures. However, the EPS forecasts for 2026 and 2027 were lowered by 1-4% to account for challenges in the smartphone industry.
