DBS expects Sunyu Optics (02382)'s profit to rise 119 percent year-on-year this year, based on the company's progress in electric vehicle parts and increased delivery of iPhones and Samsung smartphones.
The Zhitong Finance App learned that DBS released a research report saying that the profit forecast for Sun-yu Optical Technology (02382) for this year and next two years is 33% and 42%, reflecting slower than expected delivery. The target price was lowered from HK$79 to HK$55. Based on expectations of the boom in artificial smartphones, it still predicts a 54% compound annual profit growth rate from 2023 to 2026, reaffirming the “buy” rating.
The bank pointed out that Sunyu's net profit in the second half of last year fell 37% year on year due to shrinking gross margins, which is generally in line with the profit police guidelines. Management predicted a 5% year-on-year increase in mobile lens and mobile lens module deliveries, respectively, and remained flat this year. The bank expects Sunwoo's profit to rise 119 percent year-on-year this year, based on the company's progress in electric vehicle parts and increased delivery of iPhones and Samsung smartphones.
The bank also said that increasing the penetration of artificial intelligence technology into the smartphone market will increase sales of high-end mobile phones, and will generally increase demand for high-end lens production capacity. The bank indicates that high-end mobile phones will increase gross profit margins. It is expected that the penetration rate of the artificial smartphone market will rise to 40% in 2027. As the main supplier of Samsung's flagship smartphone Galaxy S24, Shunyu will ride the artificial intelligence boom by increasing the supply of high-end lenses.