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 / Equity Bottom-Up

<ul><li>We attended Sunny Optical’s Investor Day at its Yuyao headquarters.</li><li>Mgmt. shared the latest business opportunities and product strategies across handset lens, VLS/LiDAR/HUD/lighting, automotive-cam modules and XR/Robots. Key highlights include: 1) HCM/HLS: global No.1 and solid upgrade roadmap despite NT headwinds, 2) VLS: accelerated share gain to 38% in FY23E (vs. 31% in FY21), 3) Auto-module: EEA evolution and rising cam penetration to drive growth in intelligent driving/intelligent cabin; 4) XR: Apple Vision Pro to set new industry standard for supply chain (12 cam/1 SL/1 ToF/2IR).</li><li>Overall, despite smartphone NT weakness, we are positive on Sunny’s long-term strategic roadmap and huge opportunities in automobile/XR/Robot markets. </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 attended Sunny Optical’s Investor Day at its Yuyao headquarters.Mgmt. shared the latest business opportunities and product strategies across handset lens, VLS/LiDAR/HUD/lighting, automotive-cam modules and XR/Robots. Key highlights include: 1) HCM/HLS: global No.1 and solid upgrade roadmap despite NT headwinds, 2) VLS: accelerated share gain to 38% in FY23E (vs. 31% in FY21), 3) Auto-module: EEA evolution and rising cam penetration to drive growth in intelligent driving/intelligent cabin; 4) XR: Apple Vision Pro to set new industry standard for supply chain (12 cam/1 SL/1 ToF/2IR).Overall, despite smartphone NT weakness, we are positive on Sunny’s long-term strategic roadmap and huge opportunities in automobile/XR/Robot markets. 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) – Well-Positioned to Capture Auto/XR/Robots Opportunities

<ul>
<li>Apple is widely expected to launch its long-awaited MR headset in WWDC 2023 this week.</li>
<li>We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.</li>
<li>We expect technology upgrade to accelerate in displays, optics/sensors and tracking/interaction for enhancing user experience. </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.


Apple is widely expected to launch its long-awaited MR headset in WWDC 2023 this week.
We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.
We expect technology upgrade to accelerate in displays, optics/sensors and tracking/interaction for enhancing user experience. 

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.

China Technology – Apple MR: Long-awaited next “iPhone moment”

<ul><li>We hosted a NDR for investors with Sunny Optical on 27 Mar.</li><li>Mgmt. reiterated 2023 shipment guidance with gradual recovery but ASP/GPM of handset-related products were under pressure in 1H23E given camera de-spec trend.</li><li>Looking ahead, mgmt. is positive on 1) demand recovery in 3Q23E on smartphone replacement cycle, 2) AR/VR growth of 30% YoY in FY23E and 3) rising ADAS adoption to drive ASP/GPM upside in FY24-25E. Trading at 28.1x/24.3x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with SOTPbased TP of HK$86.75.</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 hosted a NDR for investors with Sunny Optical on 27 Mar.Mgmt. reiterated 2023 shipment guidance with gradual recovery but ASP/GPM of handset-related products were under pressure in 1H23E given camera de-spec trend.Looking ahead, mgmt. is positive on 1) demand recovery in 3Q23E on smartphone replacement cycle, 2) AR/VR growth of 30% YoY in FY23E and 3) rising ADAS adoption to drive ASP/GPM upside in FY24-25E. Trading at 28.1x/24.3x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with SOTPbased TP of HK$86.75.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) – NDR Takeaways: A Bumpy 1H23 Ahead

<ul><li>We are incrementally more positive on the stock after earnings call, as we believe market is too bearish on HCM/HLS outlook and underestimate automobile/XR potential upside in FY23E.</li><li>However, we believe a bumpy 1H23 will remain the major overhang for the stock given sluggish HCM/HLS shipment/GPM, and we trimmed FY23-24E EPS by 10-14% to reflect weaker margins.</li><li>Our new EPS are 14-21% below consensus. Trading at 27.4x/23.7x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with lowered SOTP-based TP of HK$86.75.</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 incrementally more positive on the stock after earnings call, as we believe market is too bearish on HCM/HLS outlook and underestimate automobile/XR potential upside in FY23E.However, we believe a bumpy 1H23 will remain the major overhang for the stock given sluggish HCM/HLS shipment/GPM, and we trimmed FY23-24E EPS by 10-14% to reflect weaker margins.Our new EPS are 14-21% below consensus. Trading at 27.4x/23.7x FY23/24E P/E, we think the stock is fairly valued. Maintain HOLD with lowered SOTP-based TP of HK$86.75.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) – Strong  auto/XR pipeline to weather smartphone headwinds

<ul><li>Sunny’s 2H22 net profit decline of 54% YoY is in-line with expectations, while revenue exceeds our/consensus estimates by 25%/9%, mainly due to better ASP and product mix.</li><li>2H22 GPM came in at 19.0%, vs 20.8% in 1H22 due to lower HCM/HLS/VLS GPM.</li><li>We expect 1H23E outlook will remain under pressure given on-going inventory correction, smartphone demand recovery uncertainty and global EV sales slowdown. </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’s 2H22 net profit decline of 54% YoY is in-line with expectations, while revenue exceeds our/consensus estimates by 25%/9%, mainly due to better ASP and product mix.2H22 GPM came in at 19.0%, vs 20.8% in 1H22 due to lower HCM/HLS/VLS GPM.We expect 1H23E outlook will remain under pressure given on-going inventory correction, smartphone demand recovery uncertainty and global EV sales slowdown. 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) – 2H22 first take: weakness in-line; awaiting recovery

China

Sunny Optical Technology (Group) Co., Ltd. is a leading global manufacturer of integrated optical components and products. The company designs, researches, develops, manufactures, and sells optical and optical-related products, including lenses for handsets, vehicles, and security, as well as camera modules, vehicle modules, microscopes, and intelligent inspection equipment. It is headquartered in Yuyao, Zhejiang, China, and was founded in 1984.

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Sunny Optical Technology (2382 HK)

Sunny Optical (2382 HK) – Well-Positioned to Capture Auto/XR/Robots Opportunities

Overall, despite smartphone NT weakness, we are positive on Sunny’s long-term strategic roadmap and huge opportunities in automobile/XR/Robot markets.

CMB International

China Technology – Apple MR: Long-awaited next “iPhone moment”

We believe 2023 is set to be one of the best years in VR/AR ecosystem development as Apple’s first MR headset will set new standard for innovation.

CMB International

Sunny Optical (2382 HK) – NDR Takeaways: A Bumpy 1H23 Ahead

Mgmt. reiterated 2023 shipment guidance with gradual recovery but ASP/GPM of handset-related products were under pressure in 1H23E given camera de...

CMB International

Sunny Optical (2382 HK) – Strong auto/XR pipeline to weather smartphone headwinds

We are incrementally more positive on the stock after earnings call, as we believe market is too bearish on HCM/HLS outlook and underestimate...

CMB International

Sunny Optical (2382 HK) – 2H22 first take: weakness in-line; awaiting recovery

Sunny’s 2H22 net profit decline of 54% YoY is in-line with expectations, while revenue exceeds our/consensus estimates by 25%/9%, mainly due to...

CMB International

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