Analyst Johnny Yum of UOB Kay Hian maintained a Buy rating on Sunny Optical Technology (Group) Co (SNPTF – Research Report), retaining the price target of HK$100.00.
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Johnny Yum has given his Buy rating due to a combination of factors that highlight Sunny Optical Technology’s promising growth prospects. The company is poised to benefit significantly from the rising adoption of Advanced Driver Assistance Systems (ADAS) in the vehicle sector, with expectations of global vehicle lens set shipments surpassing 400 million units in 2025. This growth is primarily driven by the domestic electric vehicle market, where Sunny Optical is expanding its market share.
Additionally, Sunny Optical is making strategic moves to become a leading supplier of vehicle camera modules, aiming for a substantial increase in market share over the next few years. In the LiDAR segment, the company has secured numerous projects, projecting a strong compound annual growth rate in shipments. Furthermore, despite a sluggish smartphone market, Sunny Optical is focusing on specifications upgrades and miniaturization, which are expected to drive procurement value and support margins. The company’s vertical integration strategy is also gaining momentum, contributing to its competitive edge in the high-end market.
In another report released on June 20, Macquarie also maintained a Buy rating on the stock with a HK$99.00 price target.
SNPTF’s price has also changed moderately for the past six months – from $8.820 to $7.820, which is a -11.34% drop .