Understanding the Market | SUNNY OPTICAL Soars Over 8% in the Afternoon, Institutions Expect Company to Announce Profit Surge, Apple Enters Edge AI Innovation

Zhitong
2024.07.16 05:46
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SUNNY OPTICAL surged more than 8% in the afternoon, up 7.98% as of the time of publication, trading at HKD 52.8 with a turnover of HKD 7.1 billion. A research report released by CICC stated that SUNNY OPTICAL's shipments of main mobile and automotive products in the first half of this year remained stable. At the same time, the product mix and gross margin of the smartphone camera module business, which is highly sensitive to profitability, have improved. The company is expected to maintain stable mid-term performance, with the bank predicting a mid-term net profit of RMB 1.03 billion. Huatai Securities believes that the company's improved product mix is expected to boost gross margins and recommends monitoring the trend of shipments in 3Q24. CICC also expressed optimism about Apple's entry into the edge AI innovation, driving the resonance of three elements: interactive innovation, feature upgrades/appearance changes, and closed-source ecosystem. Android manufacturers may also enter the market simultaneously, leading to a shared prosperity in the Apple and Android industry chains from the second half of 2024 to 2025. Focusing on the Hong Kong stock mobile chain, CICC believes that the upgrade of AI functions will drive new hardware parameter changes. The Hong Kong stock mobile chain has a good competitive advantage and industry position in some tracks, and it is recommended to pay attention to the potential revenue growth and elasticity brought by AI innovation

According to the Wise Finance APP, Sunny Optical (02382) surged more than 8% in the afternoon, with a 7.98% increase at the time of publication, reaching HKD 52.8, with a turnover of HKD 7.1 billion.

Lion released a research report stating that Sunny Optical's shipments of main mobile and automotive products in the first half of this year remained stable. At the same time, the product mix and gross profit margin of the smartphone camera module business, which is sensitive to profitability, have improved. The company is expected to maintain stable mid-term performance, anticipating a profit announcement. The bank predicts that the mid-term net profit will reach RMB 1.03 billion. Huatai Securities pointed out that the company's improved product mix is expected to boost gross profit margins and recommended monitoring the trend of shipments in 3Q24.

CICC stated that it is optimistic about Apple's entry into the AI innovation on the terminal side, driving the resonance of the three elements of interactive innovation, feature upgrades/appearance changes, and closed-loop ecosystem. Android manufacturers may also enter the field simultaneously. The second half of 2024 to 2025 may witness the common prosperity of the Apple and Android industry chains. Focusing on the Hong Kong stock mobile chain, CICC believes that the upgrade of AI functions will drive new hardware parameter changes. The Hong Kong stock mobile chain has a good competitive advantage and industry position in some tracks, and it is recommended to pay attention to the potential revenue growth and elasticity brought by AI innovation

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