Company Coverage
Sunny Optical (2382 HK): 1H26: Solid Beat, AIoT Products Emerge As Key Growth Driver
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$64.10
HK$106.00
+65.4%
HK$125.8
Analyst
Analyst
Highlights
1H26 revenue rose 11.5% yoy to Rmb21.9b and net profit grew 9.9% yoy to Rmb1.81b, beating consensus by 8.2% and 17.6% respectively.
AIoT products are emerging as a major growth driver through 2026-28, offsetting the sustained deterioration in the handset business.
Maintain BUY. Lower target price to HK$106.00, based on 21.1x 2027F PE.
Analysis
Non-handset segments led strong top- and bottom line beat. Revenue rose 11.5% yoy to Rmb21.9bn, 8.2% above consensus, but declined 7.1% hoh due to seasonality. Growth was driven entirely by the non-handset segments: a) other products (+88.5% yoy); b) XR (+11.0% yoy); and c) vehicle products (+10.6% yoy), while handset revenue slipped 0.8% yoy against weaker global smartphone shipments. Gross margin contracted 0.3ppt yoy and 0.1ppt hoh to 19.5%, broadly in line with consensus of 19.3%, as a 2.0ppt/3.1ppt yoy erosion in handset/vehicle-related products gross margin was partly offset by the other products segment, which has a much higher than average margin at 34.4% (+1.3ppt yoy). Coupled with a solid cost control, net profit rose 9.9% yoy to Rmb1.8b, 17.6% ahead of consensus.
Highlights
1H26 revenue rose 11.5% yoy to Rmb21.9b and net profit grew 9.9% yoy to Rmb1.81b, beating consensus by 8.2% and 17.6% respectively.
AIoT products are emerging as a major growth driver through 2026-28, offsetting the sustained deterioration in the handset business.
Maintain BUY. Lower target price to HK$106.00, based on 21.1x 2027F PE.
Analysis
Non-handset segments led strong top- and bottom line beat. Revenue rose 11.5% yoy to Rmb21.9bn, 8.2% above consensus, but declined 7.1% hoh due to seasonality. Growth was driven entirely by the non-handset segments: a) other products (+88.5% yoy); b) XR (+11.0% yoy); and c) vehicle products (+10.6% yoy), while handset revenue slipped 0.8% yoy against weaker global smartphone shipments. Gross margin contracted 0.3ppt yoy and 0.1ppt hoh to 19.5%, broadly in line with consensus of 19.3%, as a 2.0ppt/3.1ppt yoy erosion in handset/vehicle-related products gross margin was partly offset by the other products segment, which has a much higher than average margin at 34.4% (+1.3ppt yoy). Coupled with a solid cost control, net profit rose 9.9% yoy to Rmb1.8b, 17.6% ahead of consensus.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$64.10
HK$106.00
+65.4%
HK$125.8
Analyst
Analyst
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