DBS: Sunny Optical Technology – Buy Target Price HK$144.20

More dependent on Apple products and EVs

• Net profit decreased 50% y-o-y, to Rmb1.4bn, close to the lower end of the range mentioned in July profit warning
• Weak performance was mainly due to weak smartphone demand and fierce market competition
• Cut FY22/23/24F net profit by 43%/40%/35% to factor in the cuts in shipments, gross margin trend, and higher opex
• TP lowered to HK$144.2 on a lower FY22F EPS, maintain BUY as negatives are priced in