Alex NG, an analyst from CMB International Securities, maintained the Buy rating on Sunny Optical Technology (Group) Co (SNPTF – Research Report). The associated price target was raised to HK$102.89.
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Alex NG has given his Buy rating due to a combination of factors that suggest a promising outlook for Sunny Optical Technology. The company recently announced a significant increase in net profit expectations for 2024, projecting a 140-150% year-over-year growth. This upward revision surpasses both the firm’s and Bloomberg’s consensus estimates by 10%. The anticipated growth is attributed to the recovery of the smartphone market, particularly in high-end and AI-integrated smartphones, as well as the increasing demand in the new energy vehicle sector and the rising use of intelligent driving technologies.
Looking forward to 2025, Alex NG anticipates that Sunny Optical will continue to benefit from several key trends. These include government subsidies in China, advancements in AI specifications, and the expansion of edge AI devices like AI smart glasses. The analyst expects that Sunny Optical will play a significant role as a primary camera supplier for upcoming AI glasses from major brands. Additionally, the analyst has raised the company’s earnings projections for 2025 and 2026 by 17% and 14% respectively, reflecting an improved product mix and the ongoing adoption of advanced driver assistance systems (ADAS). With a new target price set at HK$102.89, the analyst underscores the favorable growth trajectory and potential catalysts such as AI smartphone and smart glasses launches.
In another report released on February 10, CLSA also maintained a Buy rating on the stock with a HK$88.30 price target.