Daily Brief Credit: Sunny Optical – ESG Report – Lucror Analytics and more

Founded in 1984, Sunny Optical Technology is a leading global integrated optical-component manufacturer. It was the largest global vehicle lens-set producer in 2024 with a market share of 32.3%, the largest global handset lens-set producer (30.8% market share) and the largest global handset camera-module producer (12.1%). The company has been listed on the Hong Kong Stock Exchange since 2007. The largest shareholder is Sun Xu Limited with a 35% stake, while 65% is publicly held. Founder Wang Wenjian and the Sunny Group Employee Offshore Trust own and control Sun Xu Limited.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Tata Motors, JSW Steel
• UST yields were little changed on Friday, following the release of robust August consumption data in the US, while the core PCE price index was broadly stable. The yield on the 2Y UST declined 1 bp to 3.64%, while the yield on the 10Y UST was stable at 4.18%. Equities recovered from a three-day slide. The S&P 500 rose 0.6% to 6,644, while the Nasdaq climbed 0.4% to 22,484.
• In the US, August personal spending accelerated slightly to 0.6% y-o-y (0.5% e / 0.5% p), while personal income came in marginally above estimates at 0.4% (0.3% e / 0.4% p).

• New World Development’s (NWD) FY 2024-25 results were weak, with the company reporting another large net loss of HKD 16.3 bn (after the HKD 19.7 bn loss in FY 2023-24), mainly driven by impairment losses.
• Underlying business performance was also soft, as core operating profit (excluding one-off items) fell 13% y-o-y.
• That said, OCF was strong and FCF was positive. This was supported by higher property deliveries in Hong Kong, lower capex (for land and construction) and G&A expenses, as well as the stoppage of dividend payments and perpetual distributions.