CICC released a research report stating that according to the rating of “outperforming the industry” by Shunyu Optical Technology (02382), net profit to the mother is predicted to be 1.74 billion yuan/2.04 billion yuan in 2024/2025, with a target price of HK$63.4 billion. The bank saw that since the beginning of the year, Sunyu's total mobile phone camera module shipments/mobile lens shipments increased 46%/38% year-on-year in January-March. The momentum for collecting goods was significantly superior to mobile phone terminal sales during the same period, higher than the market's previous expectations.
The bank believes that the relatively excellent shipping volume performance of Shunyu's mobile phone optics business continues to reflect the company's comprehensive customer coverage and high-quality product competitiveness in the mobile phone optics business. The bank suggests investors keep up with the shipping trends of the mobile phone optics business and pay attention to the company's profit recovery opportunities; 2) Vehicle-related products: The company shipped 8.432 million automotive lenses in March, up 8.0% month-on-month and 17.0% year-on-year. The bank believes that shipments of automotive lens products will return to the regular pace of picking up goods after the Spring Festival. Automobile intelligence is still one of the main industry trends in the automotive industry. As one of the leading automotive lens suppliers in the industry, Shunyu is expected to continue to benefit from the expansion of the industry brought about by industry trends.
As seen from the industry perspective, the mobile phone optical industry chain gradually became clear at the bottom of the pickup cycle after nearly two years of inventory removal. Looking back at January-March 2024, Shunyu's total mobile camera module shipments/mobile lens shipments in January-March increased 46%/38% year on year; Qiu Ti Technology's total mobile phone module shipments in January-March increased 24% year on year; and Daliguang's total revenue from January to March increased 24% year on year. The bank believes that the January-March data from the industrial chain shows that the industry's momentum to pull goods is gradually picking up; at the same time, looking at Shunyu, the year-on-month trend of mobile phone lenses in February and March was superior to the company's performance. Along with the potential release of new devices from major Android customers in the second quarter and the company's own low performance base last year, the bank advises investors to pay close attention to potential profitability restoration opportunities at the inflection point of goods collection.