News Alert June shipment broadly in line with the market expectations
- Handset lens sets shipment decreased 16% y-o-y in Jun 22, broadly in line with the market expectations
- The stronger-than-peers shipment was due to penetration into Apple products in our view
- Modules shipment dropped 21% y-o-y, due to prolonged weakness in global smartphone
- We maintain BUY on a stronger-than-peers handset lens sets shipment
– Sunny Optical (2382 HK) announced its June 22 shipment volume last Friday after market close.
– Yearly decline of handset lens sets shipment in Jun 22 came in at 15.7%, better than its peers’, due to stronger-than-market orders from apple shipment. Overall, 1H22 shipment declined 9.1% y-o-y, largely in line with the market expectation.
– Modules shipment dropped 21.4% y-o-y, continuing the decline because of the persisting global weak smartphone demand.
– Vehicle lens sets shipment stops declining and increased 25.3% y-o-y due to the low base last year due to supply chain constraints.
– Optical instruments shipment continues a y-o-y growth of 23.5% but still remains in a very limited scale
– We expect a neutral share price reaction as the 1H22 shipment is largely in line with the market expectation.
– We expect the continuous penetration into Apple’s value chain will support Sunny optical in surpassing its peers which focus on android models in FY22’s shipment.
– We maintain BUY with TP of HK$200 on a stronger-than-peers handset lens sets shipment because of penetration to iPhone products.