Consumer SentimentWeaker-than-expected consumer sentiment for smartphones globally affecting shipments.
Financial PerformanceSunny Optical preannounced FY23E net profit decline of 50-55% YoY, 23%/18% below market estimates, attributed to weak smartphone demand, intense competition, and prolonged de-spec trend leading to lower ASP and GPM.
Stock Price PressureTrading at 26.1x FY24E P/E, the stock is fairly traded, and pressure on the stock is expected in the near term.