External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Sunny Optical Technology Group / Equity Bottom-Up

<ul><li>Sunny Optical (Sunny)’s FY23 net profit was largely in-line with profit warning, but 2H23 GPM of 14.1% (vs 19% in 2H22) was below expectations due to more intense competition despite spec upgrade and more high-end models in 2H23.</li><li>For 2024 guidance, while mgmt. is conservative on HCM/HLS/VLS shipment, Sunny is positive on smartphone ASP, high-end HLS ramp-up, stable VLS/XR growth, and better GPM recovery in 2H24E.</li><li>We trimmed FY24/25E EPS by 35%/27% to factor in weak 2023 GPM and conservative guidance. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (Sunny)’s FY23 net profit was largely in-line with profit warning, but 2H23 GPM of 14.1% (vs 19% in 2H22) was below expectations due to more intense competition despite spec upgrade and more high-end models in 2H23.For 2024 guidance, while mgmt. is conservative on HCM/HLS/VLS shipment, Sunny is positive on smartphone ASP, high-end HLS ramp-up, stable VLS/XR growth, and better GPM recovery in 2H24E.We trimmed FY24/25E EPS by 35%/27% to factor in weak 2023 GPM and conservative guidance. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (2382 HK) - Expectations Reset on Conservative Guidance; Maintain HOLD

<ul><li>Sunny reported a FY23E profit warning with earnings decline of 50-55% YoY, 23%/18% below our/consensus estimates on weak smartphone demand, intense competition, and the de-spec trend.</li><li>While we remain positive on Android recovery, gains of share of supply to Apple, and spec upgrade in FY24E, we believe consensus estimates are too bullish on margins and ASP recovery.</li><li>We cut FY24/25E EPS by 20%/19% to factor in the results miss and slower ASP/margin recovery in FY24-25E.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny reported a FY23E profit warning with earnings decline of 50-55% YoY, 23%/18% below our/consensus estimates on weak smartphone demand, intense competition, and the de-spec trend.While we remain positive on Android recovery, gains of share of supply to Apple, and spec upgrade in FY24E, we believe consensus estimates are too bullish on margins and ASP recovery.We cut FY24/25E EPS by 20%/19% to factor in the results miss and slower ASP/margin recovery in FY24-25E.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (2382 HK) - 2023 Profit Warning Worse than Feared

<ul><li>We are positive on post-destocking shipment recovery and industry-wise spec upgrade trend driven by recent Huawei/Apple flagship models (Mate Pro 60/ iPhone 15 Pro Max).</li><li>For Sunny, we also expect blended ASP recovery, Apple/ Huawei order wins and easing competition to drive earnings in 2H23/2024.</li><li>However, in the near term, we believe recent stock rallies have factored in these positives, and Sunny’s Sep HLS/HCM shipment growth of 17%/41% YoY was largely in-line mainly on Apple/Huawei restocking and low base vs 2022. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We are positive on post-destocking shipment recovery and industry-wise spec upgrade trend driven by recent Huawei/Apple flagship models (Mate Pro 60/ iPhone 15 Pro Max).For Sunny, we also expect blended ASP recovery, Apple/ Huawei order wins and easing competition to drive earnings in 2H23/2024.However, in the near term, we believe recent stock rallies have factored in these positives, and Sunny’s Sep HLS/HCM shipment growth of 17%/41% YoY was largely in-line mainly on Apple/Huawei restocking and low base vs 2022. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (2382 HK) – Positive on Shipment Recovery and Upgrade Trend

<ul><li>While we expect HLS/HCM shipment to recover sequentially into 2H23E driven by channel restocking and major clients’ order ramp-up, we believe 2H23E margin recovery will be slower-than-expected, dragged by limited spec upgrade and slow utilization recovery.</li><li>We revised down FY23-25E EPS by 9-18% to reflect 1H23 results and more conservative margin estimates.</li><li>We maintain our positive view on automobile/XR upside, but we believe a bumpy 2H23 will remain an overhang for the stock. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

While we expect HLS/HCM shipment to recover sequentially into 2H23E driven by channel restocking and major clients’ order ramp-up, we believe 2H23E margin recovery will be slower-than-expected, dragged by limited spec upgrade and slow utilization recovery.We revised down FY23-25E EPS by 9-18% to reflect 1H23 results and more conservative margin estimates.We maintain our positive view on automobile/XR upside, but we believe a bumpy 2H23 will remain an overhang for the stock. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (2382 HK) – Expect Shipment Recovery on Track in 2H23E

<ul><li>While Sunny’s 1H23 net profit decline of 68% YoY is in-line with our estimate and its profit warning (down 65-70% YoY), its 1H23 GPM of 14.9% is well below our/consensus estimate of 17.2%/17.1%, given demand weakness, lower utilization and de-spec trend.</li><li>We expect 2H23E HCM/HLS shipment will recover YoY/QoQ given restocking and low base effect in 1H22, but margin will remain under pressure given slow demand recovery and limited spec upgrade.</li><li>In the long term, we are positive on auto/LiDAR/HUD/AR/VR to drive future growth. Trading at 36.5x/23.1x FY23/24E P/E, we think the stock is fairly valued. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

While Sunny’s 1H23 net profit decline of 68% YoY is in-line with our estimate and its profit warning (down 65-70% YoY), its 1H23 GPM of 14.9% is well below our/consensus estimate of 17.2%/17.1%, given demand weakness, lower utilization and de-spec trend.We expect 2H23E HCM/HLS shipment will recover YoY/QoQ given restocking and low base effect in 1H22, but margin will remain under pressure given slow demand recovery and limited spec upgrade.In the long term, we are positive on auto/LiDAR/HUD/AR/VR to drive future growth. Trading at 36.5x/23.1x FY23/24E P/E, we think the stock is fairly valued. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sunny Optical (2382 HK) – 1H23 First Take: In-Line with Profit Warning

China

Sunny Optical Technology Group Co., Limited designs and manufactures optical and optical related products. The Company's products include glass/plastic lenses, prisms, mobile phone camera modules, microscopes, surveying instruments, and other analytical instruments.

Sunny Optical Technology Group (2382 HK)

Sunny Optical (2382 HK) - Expectations Reset on Conservative Guidance; Maintain HOLD

Sunny Optical (Sunny)’s FY23 net profit was largely in-line with profit warning, but 2H23 GPM of 14.1% (vs 19% in 2H22) was below expectations due...

CMB International

Sunny Optical (2382 HK) - 2023 Profit Warning Worse than Feared

Sunny reported a FY23E profit warning with earnings decline of 50-55% YoY, 23%/18% below our/consensus estimates on weak smartphone demand, intense...

CMB International

Sunny Optical (2382 HK) – Positive on Shipment Recovery and Upgrade Trend

We are positive on post-destocking shipment recovery and industry-wise spec upgrade trend driven by recent Huawei/Apple flagship models (Mate Pro...

CMB International

Sunny Optical (2382 HK) – Expect Shipment Recovery on Track in 2H23E

We maintain our positive view on automobile/XR upside, but we believe a bumpy 2H23 will remain an overhang for the stock.

CMB International

Sunny Optical (2382 HK) – 1H23 First Take: In-Line with Profit Warning

In the long term, we are positive on auto/LiDAR/HUD/AR/VR to drive future growth. Trading at 36.5x/23.1x FY23/24E P/E, we think the stock is fairly...

CMB International