News Alert : July shipment in line with the market expectations
- July 22 handset lens sets shipment declined 14.9% y-o-y, in line with the market expectation of a 15.0% decline in 2H22
- Modules shipment dropped 33.5% y-o-y, due to prolonged weakness in global smartphone
- Expect a neutral share price reaction
What’s New
– Sunny Optical (2382 HK) announced its July 22 shipment volume yesterday after market close.
– Yearly decline of handset lens sets shipment in Jul 22 came in at 14.9%, in line with the market expectation of 15.0% decline in 2H22 .
– Modules shipment dropped 33.5% y-o-y, continuing the decline because of the persisting global weak smartphone demand.
– Vehicle lens sets shipment continue the growth and increased 25.7% y-o-y on low base last year due to supply chain constraints.
– Optical instruments shipment continues a y-o-y growth of 23.4% but still remains in a very limited scale
Our View:
– We expect a neutral share price reaction as the July 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 on a stronger-than-peers handset lens sets shipment because of penetration to iPhone products.
