News Alert: Handset lens sets shipment drops 11% y-o-y in Jan FY22, fell behind in FY22 forecast
- Handset lens sets and modules shipment declined 11.0% and 23.3% y-o-y respectively in Jan 22, fell behind the market’s FY22 shipment forecast
- Vehicle lens sets shipment slightly increase 2.5% y-o-y while optics instrument shipment surged 57.4% y-o-y respectively
- The disappointing performance was mainly due to the persistence of sluggish smartphone shipment growth from 2021 in android models
- Expect near-term share price pressure
- Please find out more at DBS Insights Direct:
What’s New
– Sunny Optical (2382 HK) announced its Jan 22 shipment volume aftermarket last Friday.
-The handset lens sets resumed m-o-m growth by 8.7%, but still show a decline compared with last year. Handset lens sets and handset camera modules declined by 11.0%/ 23.3% y-o-y respectively, fell behind in the market consensus and our FY22 shipment projection due to the continuation of weak shipment demand from last year.
-Vehicle lens sets shipment surged 55.3% m-o-m and 2.5% y-o-y owing to the low base of December shipment brought by holiday
-Optical instruments shipment maintains a robust 44.9% m-o-m and 57.4% y-o-y growth but remains in a very limited scale
Our View:
– The disappointing performance in handset lens and module shipment is mainly due to the persistence of sluggish global smartphone shipment growth from 2021 especially in android models.
-We expect the weak smartphone shipment to bottom out in 2H22 due to the high potential of Soc or 5G chips shortage ease in 2H22
-We expect the vehicle lens set to maintain a stable shipment growth under the supply tightness of auto chips.
-Near-term share price pressure is expected before any operational data showing the resume of handset lens set shipment growth.
– We maintain BUY rating with TP at HK$275.0 on the back of global smartphone shipment growth to resume in 2H22 and better penetration to iPhone products expectation.