Guo Mingchi: Expects SUNNY OPTICAL to become Apple's new CCM supplier in 2025

According to the latest information from Zhitong Finance and Economics APP, Tianfeng International Securities analyst Ming-Chi Kuo expects that Sunny Optical Technology (02382) will become a new CCM supplier for Apple (AAPL.US) in 2025, and will mass produce and ship the new M5 series MacBook models in Vietnam. Given Sunny Optical's position as a top-tier global CCM supplier, if the MacBook CCM shipments go smoothly, it is expected to become a new supplier for iPhone and iPad CCM in the future.

Kuo pointed out that becoming a new supplier for Apple CCM signifies two important new trends for Sunny Optical: doubling revenue has become a achievable long-term operational goal, and vertical integration is conducive to profit growth.

He further noted that Apple's annual CCM procurement amount is around $13-15 billion, about three times Sunny Optical's annual revenue. If Sunny Optical can continue to secure Apple CCM orders in the coming years and grow its other businesses at the same time, doubling revenue in the long term is not impossible. Among Apple's optical supply chain, only Sunny Optical can ship both CCM and lenses, and this vertical integration advantage is conducive to profit growth.

Due to production issues in 2023, Sunny Optical lost iPhone lens orders to competitors, leading to a very low supply share. However, Kuo's latest investigation shows that starting from 2H24, iPhone orders will gradually return to Sunny Optical. This should be attributed to Sunny Optical's continuous production improvement and communication with Apple. Sunny Optical's goal is to restore the lens supply share of 2023 by 2025, which will benefit the company's operational performance in 2025