Sunny Optical Technology: Strong Market Position and Growth Potential Justify Buy Rating

DBS analyst Jim Hin Kwong Au has maintained their bullish stance on SNPTF stock, giving a Buy rating on May 16.

Jim Hin Kwong Au has given his Buy rating due to a combination of factors that highlight Sunny Optical Technology’s strong market position and growth potential. The company is a leading global provider of handset lens sets, commanding approximately 30% of the market share in terms of shipments. This dominant position, coupled with its broad product exposure across consumer electronics, vehicles, and robots, positions Sunny Optical well for future growth.
Furthermore, the anticipated rebound in smartphone sales CAGR from -3.6% to 4.4% is expected to drive significant growth in industry average selling prices and gross margins, particularly with the integration of AI technology into smartphones. Sunny Optical is also set to benefit from the expanding humanoid robot sensor market, leveraging its advanced visual solutions. These factors, along with an expected strong earnings recovery and a revised target price of HKD110.0, underpin the Buy rating.

In another report released on May 16, Bernstein also maintained a Buy rating on the stock with a HK$97.00 price target.