Earning First Take : 1HFY22 net profit decreased 50% y-o-y, close to the lower end of the range warned in the profit alert in July
- 1HFY22 Revenue declined slightly by 14.4% y-o-y to Rmb 16.9 bn, slightly missing the market consensus by 3.7%
- Net profit decrease 49.5% y-o-y to, Rmb 1.36bn,close to the lower end of the range warned in the profit alert in July
- The weak performance was mainly due to weak smartphone demand and fierce industrial competition
- Expect a neutral share price reaction as the decline in profit has been largely priced in
What’s New
– Sunny Optical (2382 HK) announced 1HFY22 today result after market close.
– 1HFY22 Revenue declined by 14.4% y-o-y to Rmb16.9 bn, slightly missing the market consensus by 3.7%, primarily attributable to weaker demand for the android smartphone since end- 2021.
– Gross margin decreased to 20.8%, down 4.1ppts y-o-y due to the downgrading specification of smartphone cameras and fierce competition in the camera module market
– Net profit was Rmb1.36 bn, down 49.5% y-o-y, still within the range of 45% to 50% decline as warned in July profit alert.
Our View:
– We expect a neutral share price reaction as the result is largely priced in as share price didn’t move much after releasing profit warning in July.
– We expect handset lens and module shipment to be impacted continuously at least for the 2H22 by the weak consumer sentiment on smartphones especially for high-end models.
– We expect the vehicle lens set to maintain a stable shipment growth under the supply tightness of auto chips and the optical instrument to remain in teens growth under the penetration into the industrial field.
– We currently rate BUY on the counter with TP under review.
– Analyst call will be held at 9:30 am on 16 Aug.
