Sunny Optical Technology Group Co. Ltd.

Sunny Optical Technology Group is an optical manufacturing group based in Hong Kong. Co. is engaged in the design, research and development, manufacture and sales of optical and optical-related products. These products include optical components (such as glass spherical and aspherical lenses, plane products, handset lens sets, vehicle lens sets and other lens sets), optoelectronic products (such as handset camera modules, smart television video modules, security surveillance cameras and other optoelectronic modules) and optical instruments (such as microscopes, optical measuring instruments and various optical analytical instruments).
  • TickerSXC
  • ISINKYG8586D1097
  • SectorElectronic & Electrical Equipment
  • CountryGermany

Analysts

UOB
Greater China Research Team

Strategy - Beyond COVID-2019

While workers in major cities are returning to work on 10 February, mobility restrictions and shortage of protective masks will lead to a slow start. Hence, 1Q20 is likely to be a washout. But investors have looked beyond the impact of COVID- 2019, with the index recovering more than half of the initial decline. Even with the sharp rebound, some stocks remain attractive, namely CK Asset, PICC P&C, Stella, and Xiabuxiabu.

UOB
Lee Yuk Kei

IT Hardware - Handset Components: Coronavirus impact on supply chain

The Wuhan coronavirus outbreak in China has forced the government to extend the Lunar New Year holiday in major provinces where most IT hardware components manufacturing facilities are located. Although the supply chain still faces shortage in labour and components during the current low season, the companies we cover are optimistic about the resumption of production in the near term. Thus, the overall negative impact on their 2020 results should not be significant. Maintain OVERWEIGHT.

A double requalification allows SUNNY OPTC.TECH.GP.CTD. to improve to Slightly Positive

SUNNY OPTC.TECH.GP.CTD. (HK), a company active in the Electrical Components & Equipment industry, has received a double requalification by the independent financial analyst theScreener. Its fundamental valuation is now 4 out of 4 stars while its market behaviour can be considered as moderately risky. theScreener believes that the gain of a star(s) and an improvement in the market risk perception allows upgrading the general evaluation to Slightly Positive. As of the analysis date January 24, 2020, the closing price was HKD 141.00 and its potential was estimated at HKD 167.31.

UOB
Lee Yuk Kei

IT Hardware - Handset Components: 5G will be the key theme for 2020

5G smartphone shipments should record substantial growth in China in 2020, driven by the large-scale deployment of telecom carriers, affordable 5G tariff packages and attractive 5G handset prices. Boosted by 5G handset sales, we expect China’s overall handset shipment volume to move into positive growth territory of 3% in 2020 vs -6.2% in 2019. Thus, all handset component names would benefit, but to different extents. We prefer Sunny, Tongda and Pentamaster in this sector. Maintain OVERWEIGHT.

UOB
Tham Mun Hon

CHINA/HK MARKET STRATEGY FOR 2020: 143-page report – Price = US$500:-

UOB Kay Hian published on 11th December a 143-page China/HK strategy report, which highlights our preferred sectors and stocks for 1H 2020. The report includes sections on:- * Market Strategy for 2020: pages 4 – 15; * Stock Recommendations: page 16; * China 2020 Economic Outlook: pages 17 – 26; * Review of Sectors: pages 27 – 112; * Company Updates - Top Stock Picks: pages 114 – 143. For more information about the UOBKayHian dealing services in the Asia-Pacific region and the research on Asian companies (including bespoke packages and free trials), please contact David Osman or Simon Dickson i...

UOB
Tham Mun Hon

CHINA/HK MARKET STRATEGY FOR 2020: 143-page report – Price = US$500:-

UOB Kay Hian published on 11th December a 143-page China/HK strategy report, which highlights our preferred sectors and stocks for 1H 2020. The report includes sections on:- * Market Strategy for 2020: pages 4 – 15; * Stock Recommendations: page 16; * China 2020 Economic Outlook: pages 17 – 26; * Review of Sectors: pages 27 – 112; * Company Updates - Top Stock Picks: pages 114 – 143. For more information about the UOBKayHian dealing services in the Asia-Pacific region and the research on Asian companies (including bespoke packages and free trials), please contact David Osman or Simon Dickson i...

UOB
Lee Yuk Kei

Sunny Optical - Strong business momentum to sustain into 2020.

Following an update from management, we remain positive on Sunny Optical’s business development on all fronts in 2020. Besides healthy volume growth, management expects Sunny to continue to achieve product mix upgrade which will lead to ASP and margin expansions in 2020. Sunny has set aside resources to expand production capacities on all business fronts in 2020 on anticipation of strong demand amid 5G and multi-cam trends. We lift our target price to HK$161.00, pegging it to 30x 2020F PE. Maintain BUY.

Feasibility Study Results in December to be a Catalyst for this Junior

Feasibility Study Results in December to be a Catalyst for this Junior