Jinwu Financial News | According to Huachuang Securities Research, the decline in revenue of Shunyu Optical Technology (02382) in 2023 was mainly due to pressure on the mobile phone business. In 2023, the mobile phone business revenue was 20.935 billion yuan (YOY -10.1%), the in-vehicle business was 5.283 billion yuan (YOY 28.6%), and the VRAR business was 1.87 billion yuan (YOY -9.3%). In 2023, the smartphone business was pressured by weak downstream sales and downsizing of mobile phone cameras, but demand for mobile phones gradually picked up in the second half of '23. In '23, the company shipped 1,171 million pieces of mobile phone lenses (YOY -1.8%) and shipped 567 million mobile phone modules (YOY 9.8%). Under pressure on volume and price, mobile phone product revenue decreased 10.1% year-on-year to 20.935 billion yuan.
According to the bank, on the profit side, the company's gross margin fell 5.4 percentage points to 14.5% year on year in '23. Among them, the gross margins of optical components and optoelectronic products fell by 5 pct and 5.2 pct, respectively. Global smart phone shipments experienced 9 consecutive quarters of decline from 2021 Q3 to 2023Q3, with 23Q4 shipments of 326 million units (YOY +8.5%), the first year-on-year correction in 10 quarters. IDC predicts that global smart phone shipments will increase 2.8% year-on-year to 1.2 billion units in 2024. At the same time, the company's mobile phone lens shipments have been growing for 10 consecutive months since May 2023/mobile phone module shipments have increased year-on-year for 9 consecutive months since June 2023. The industry is expected to experience recovery and growth, and the company is an industry leader, which is expected to benefit from the consumer electronics recovery cycle.
The bank said that the mobile phone market is expected to enter a recovery channel, vehicle optics/XR will open up space for a new round of growth in the industry, and the company is expected to enjoy industry dividends as a lens leader. Affected by downstream demand pressure, etc., the bank adjusted the company's net profit forecast for 2024-2026 to $1,503/18.07/2,061 billion (2024/2025 original value of 39.44/4.755 billion yuan). Referring to comparable companies Lianchuang Electronics, etc., the company was given a price-earnings ratio of 37 times in 2024, corresponding to the target price of HK$54.8, maintaining a “strong push” rating.