Sunny Optical Technology (Group) (SOTGY) AI Stock Analysis

• Market Cap: $9.93B
• Dividend Yield: 0.77%
• Average Volume (3M): 160.00
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.26
• Revenue Growth: 7.93%
• EPS Growth: 88.47%
• Country: US
• Employees: 33,884
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.09
• Shares Outstanding: 109,480,480
• 10 Day Avg. Volume: 131
• 30 Day Avg. Volume: 160
• PEG Ratio: 0.18
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 58.44
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: 1.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $89.00 ▲(0.88% Upside)

Sunny Optical Technology's strong financial performance is a key strength, supported by robust revenue growth and profitability. However, technical indicators suggest bearish momentum, which negatively impacts the overall score. The valuation is moderate, with a reasonable P/E ratio but a low dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, enhancing the company's competitive position and potential for future expansion.

Cash Flow Management

Improved cash flow management enhances financial flexibility, enabling strategic investments and reducing reliance on external financing, which supports long-term growth.

Balance Sheet Strength

Low financial leverage provides stability and reduces risk, allowing the company to weather economic fluctuations and invest in growth opportunities without overextending its resources.

Negative Factors

Profit Margin Concerns

While profitability is solid, the relatively modest net profit margin suggests potential pressure on margins, which could impact long-term profitability if costs rise or competitive pressures increase.

Liability Increase

An increase in liabilities, although slight, could indicate rising financial obligations that may affect future cash flow and investment capacity if not managed carefully.

Cash Flow Volatility

Volatility in cash flows from investing and financing activities may indicate instability in financial planning, which could hinder long-term strategic initiatives if not addressed.

Sunny Optical Technology (Group) Business Overview & Revenue Model

Company Description

Sunny Optical Technology (Group) Company Limited, an investment holding company, engages in designing, researching, developing, manufacturing, and selling optical and optical related products, and scientific instruments. The company's Optical Components segment offers glass spherical and aspherical lenses, handset lens sets, vehicle lens sets, security surveillance lens sets, and other lens sets. Its Optoelectronic Products segment comprise handset camera modules, three dimensional optoelectronic products, vehicle modules, and other optoelectronic modules. The company's Optical Instruments segment includes microscopes and intelligent inspection equipment for testing. Its optoelectronic-related products are used in handsets, digital cameras, vehicle imaging and sensing systems, security surveillance systems, virtual reality/augmented reality, and robots, which are combined with optical, electronic, algorithm, and mechanical technologies. In addition, the company engages in the research and development of infrared and semiconductor technologies; trading of optical instruments and optoelectronics products; property leasing activities; and development, service, and consultation of technology; provision of financing services; and import and export agency services. It operates primarily in the People's Republic of China, rest of Asia, Europe, North America, and internationally. The company was founded in 1984 and is headquartered in Yuyao, China.

How the Company Makes Money

Sunny Optical generates revenue primarily through the sale of optical products, which include camera lenses for smartphones, automotive lenses, and other optical components used in various applications. The company's revenue model is largely driven by partnerships with major technology companies and smartphone manufacturers, providing them with essential optical components for their devices. Additionally, SOTGY benefits from economies of scale and technological advancements that enhance production efficiency. The company's strategic collaborations and long-term contracts with key clients further secure consistent revenue streams, while its commitment to research and development allows it to innovate and expand its product offerings in growing markets.

Sunny Optical Technology (Group) Financial Statement Overview

Summary

Sunny Optical Technology demonstrates strong financial health with impressive revenue growth and profitability. The balance sheet is robust with low leverage and solid equity utilization. Cash flow management shows improvement, though some volatility in non-operational cash flows should be monitored. Overall, the company is on a positive financial trajectory.

Income Statement

Sunny Optical has shown robust revenue growth, with a 20.86% increase from 2023 to 2024. The gross profit margin stands at 18.29%, and the net profit margin is 7.05%, reflecting solid profitability. Additionally, the EBIT margin is 6.56% and the EBITDA margin is 15.33%, indicating efficient operational performance. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.25, indicating low financial leverage. The return on equity is 10.90%, showcasing efficient utilization of equity. The equity ratio is 46.03%, reflecting a stable financial position. While the balance sheet is strong, the slight increase in total liabilities is a point to monitor.

Cash Flow

Sunny Optical's free cash flow grew significantly by 576.48% from 2023 to 2024, highlighting improved cash efficiency. The operating cash flow to net income ratio is 1.28, and the free cash flow to net income ratio is 0.44, indicating good cash conversion. Despite these positives, fluctuations in investing and financing cash flows suggest caution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.09B	38.29B	31.68B	33.20B	37.50B	38.00B
Gross Profit	7.65B	7.01B	4.59B	6.60B	8.74B	8.70B
EBITDA	5.04B	5.87B	3.82B	4.38B	6.76B	6.75B
Net Income	3.27B	2.70B	1.10B	2.41B	4.99B	4.87B
Balance Sheet
Total Assets	55.80B	53.81B	50.30B	43.00B	38.77B	35.44B
Cash, Cash Equivalents and Short-Term Investments	24.02B	21.36B	21.51B	18.12B	15.04B	11.63B
Total Debt	6.65B	6.14B	5.78B	6.44B	6.21B	6.11B
Total Liabilities	29.20B	28.51B	27.42B	20.82B	17.88B	18.61B
Stockholders Equity	26.01B	24.76B	22.42B	21.84B	20.59B	16.60B
Cash Flow
Free Cash Flow	1.23B	1.19B	176.69M	4.33B	4.45B	4.48B
Operating Cash Flow	3.74B	3.46B	2.66B	7.38B	6.98B	7.16B
Investing Cash Flow	-6.45B	-10.44B	-1.49B	-3.83B	-2.90B	-5.98B
Financing Cash Flow	1.54B	-1.57B	4.86B	-2.16B	-1.24B	-222.25M

Sunny Optical Technology (Group) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 88.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOTGY, the sentiment is Neutral. The current price of 88.22 is above the 20-day moving average (MA) of 85.33, below the 50-day MA of 96.11, and below the 200-day MA of 94.45, indicating a neutral trend. The MACD of -2.33 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 90.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SOTGY.

Sunny Optical Technology (Group) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	79 Outperform	$8.63B	36.12	10.81%	―	7.40%	13.79%
LFUS	76 Outperform	$6.46B	49.47	5.01%	1.12%	5.78%	-32.34%
MKSI	75 Outperform	$10.94B	39.63	11.12%	0.53%	8.13%	780.20%
CGNX	70 Outperform	$6.44B	59.34	7.21%	0.85%	10.23%	25.53%
COHR	66 Neutral	$28.57B	267.85	3.08%	―	20.80%	―
SOTGY	64 Neutral	$9.93B	21.63	13.28%	0.77%	7.93%	88.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Sunny Optical Technology (Group) Corporate Events

Sunny Optical Technology Reports Strong H1 2025 Growth

Sunny Optical Technology (Group) Co., Ltd. is a leading company in the optical and optoelectronic industry, specializing in the design, research, development, and sale of optical and optical-related products, with applications spanning vehicles, smartphones, and optical instruments.