News Alert : Handset lens sets shipment decreased 9% y-o-y in May 22, ahead of the market expectation
- Handset lens sets shipment decreased 9% y-o-y in May 22, 5M shipment declined 8.2% y-o-y, ahead of market expectations
- The stronger-than-expected performance was due to penetration into Apple products in our view
- Modules shipment dropped 10.5% y-o-y, continuing the decline because of the global weak smartphone demand
- We maintain BUY with TP of HK$200 on a EPS growth profile in FY21-24
What’s New
– Sunny Optical (2382 HK) announced its May 22 shipment volume today after market close.
– Handset lens sets shipment decreased 8.9% y-o-y in May 22, 5M shipment declined 8.2% y-o-y, ahead of the market expectation of 16.5% y-o-y decline in 1H22. We believe this was due to strong-than market orders from apple shipment.
– Modules shipment dropped 10.5% y-o-y, continuing the decline because of the general weak smartphone demand.
– Vehicle lens sets shipment continued to decrease 8.8% y-o-y due to supply chain constraint.
– Optical instruments shipment resumed a y-o-y growth of 7.3% but still remain in a very limited scale
Our View:
– We expect neutral share price reaction as it is the continuation of shipment growth from Apple since last month.
– We expect that continuous penetration into Apple’s value chain continue to be the key driver in FY22
– We maintain BUY with TP of HK$200 on a EPS growth profile in FY21-24 because of 1) penetration to iPhone products and 2) first mover advantage in smartphone player’s EV development.
